Market research is essential to launching any new business. In this article we show you where to look, what to look for, and how to look. 

Google (and other search engines) is your friend when conducting market research. The first thing to remember when starting is that your goal is not to prove your idea is a good one. Now is the time to become a genuinely unbiased researcher. Treat the information you come across as objectively as possible. If something you find threatens your idea, that's ok. It's just one data point. Do your best to collect information first and not translate it just yet simply. 

Once you've checked Google, it's essential to consider whether there are any market-specific apps, forums, or communities that you should be looking at. Are there industry experts you can call to get the answers you're missing? For a more in-depth guide to early stage market research, check out our course "evaluating your idea."

Let's start by listing the most important questions you need to answer. As you find answers, create a document where you can store links, statistics, and other important information.  

What is the size of my target market (dollars or people)?

Who are the top competitors in this market? 

If there are no competitors, how are people currently meeting the need you will solve? 

What is the core value proposition of the leading competitors? (What are they offering that makes their product or service superior to their competition?)

What prices are the leading competitors charging for their products or services?

What are the trends in this market that could affect your business?

Please keep track of the market research document you created and keep adding information to it. You will likely learn new information through conversations and future google sessions, so keeping it all in one place will be very helpful later. 

Now it's time to translate the information you have gathered by answering the questions below. 

Is your target market large enough to support your business? (If it's too big, you can break your target market into smaller niches and focus first on one niche inside the larger market.)  

Are the competitors in this market large and well established?

Can your value proposition compete with your competitors? If not,  how do you need to change your value proposition to give your company a competitive advantage? To design your value proposition check out our  course, "Designing Your  Value Proposition."

Can your prices compete with your competitors?

Are there any market trends that could threaten the future success of your business? If so, how can you change your business model to account for these trends? To develop your business model check out our course "Designing Your Business Model. 

Now it's up to you. The research you did and the answers to the above questions should give you a clear picture of the market you are going into. You should also have a clearer picture of how you can succeed in that market and what challenges you need to address in your business model before you move forward. 

For a more in-depth guide to early-stage market research, check out our course "evaluating your idea."

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