Business Plans 3: Researching Your Market

Researching market potential is essential for business success. Many people have ideas for products and services that they think are fantastic. They spend thousands, set up a business and then lose it all because the market is not interested in what they are offering.

When it comes to researching a market, their are generally three areas you want to research:

  1. Clients and Customers
  2. Competitors
  3. Market Innovations and Niches.
Clients and Customers
Clients and customers are the people that will put money in your product. This depth of this topic is too long for this post, except to say that you must determine your market attributes and find out both their demand driver and your value proposition for them.

Competitors
Competitors need to be researched and analysed for innovations that can provide you with a competitive advantage. Research your five major competitors, and find out what it is about them that makes a customer decide to purchase their product/service. Also look for market opportunities and gaps.
Market Innovations and Niches
Finding spaces in the market that are not currently filled by other businesses that potentially can be capitalised upon are essential for business growth. Research is essential in this category to sustain a competitive advantage.