Business ? Reasons Why You Must Do Market Research

Building a business without doing any market research can be compared to building a house without a foundation. There are many reasons and factors that cause many start-up businesses to fail in their first year however, the most common reason is the lack of market research. There are some business start-ups that have never even done any market research and they wonder why their business failed.

Any successful business knows that having an in-depth knowledge and understanding of their customers and competitors is the key to their success. However, many new businesses ignore this important essential part of building a business. Many naive business people start by having a great idea for a product or service and then try and find a market for it. This is a sure fire way to failure and if they do make a business profit then it is more down to luck than anything else.

To have a successful business you need to find a profitable market. This market has to have a problem that you can find a solution for. When you can find that solution you are nearly half way there. This is putting this process in simplistic terms but in a nut shell that is it. As they say cash flows to those who can solve people’s problems.

When you find a market with problem you need to determine what that solution will be and most importantly if they are willing to spend money on the solution you are proposing to provide them. You will also have to look at your competition. If there are a lot of competition with many big companies with a huge market share then this could mean the market will be very tough to break into. However, a competitive market is also a good sign that the market has a lot of buyers. Your competition is also useful when helping you develop your own product and service. By researching your competition you can easily find what they are selling and why it is successful. This information can help you develop your own product and service and make it unique