Before you dive into your business plan, it’s important to know the market you’re entering.
Conducting thorough market research in your intended market and understanding the demographics of your clients and potential clients will help you write your business plan and will also help you build a sustainable, successful business.
Here’s everything you need to know about conducting market research for your new business.
Start by evaluating your direct competitors
Who is the direct competition? Is someone else already doing what you want to do? If not, is there a reason why that is?
According to the Small Business Administration, there are more than 30 million small businesses in the United States. In fact, small businesses make up an incredible 99.9 percent of all U.S. businesses.
Small businesses in the U.S. employ 58.9 million people, which represents 47.5% of all people employed in the U.S.
According to the SBA, four out of five small businesses survive one year in business. About half survive five years, and a little over 30% survive 10 years or longer.
A lot of the work to come relies on information gleaned from market research. It’s crucial that you don’t skip this stage, so you have the data you need to make informed decisions.