
Market research is important in building a business. Before you jump in and start creating a product or service, it’s good to understand what potential customers needs are. A startup business is an inherently risky undertaking, but by using market research effectively, you can remove some of that risk.
What is market research exactly? Market research is about discovering what people want, need, or believe. The term “market” can be somewhat misleading. It’s probably better to think about it as “customer” research. You essentially want to collect information about what potential customers want, need or desire, and then aggregate that information into an overall “market.”
A lot of would-be entrepreneurs think they don’t need market research. These people feel like they’re naturally “in tune” with the market. They think they have a good “gut feel” for what people need or desire. It’s kind of like programmers who write software without a functional spec. This is a simple mistake that leads to the untimely demise of many small businesses.
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