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 Some of us who start a business went to some sort of tertiary education and had experience in some sort of research. We hear, as small business owners, from coaches the importance of research and yet we do not heed the warning. 

But why when you start your business you need to do your home-work (market research): 

1.Your competitors are already established. Yes, your competitors are already established and they already did the work so being an entrant will require on your part an understanding of who they are, what is their value proposition, how long they have existed in the market, and even their networks through board members or managers. As a small business, you are most likely starting with little capital, no staff, and maybe, savings to live on to achieve your dreams. If you know your market you can be realistic about your growth path, whether or not to quit your day job, or even to get a day job until your business is stabilized.

 2.The economy can make you or break you. The government can make decisions based on an idea that can change your business’ potential profitability overnight. You need to know if the market you want to operate in is impenetrable to external factors. Some are and some aren’t. For example, food will always be in demand, but not all food. By knowing what the market has faced in the past and could face in the future when decisions are made an approximate choice best for your potential company will be beneficial.

 3.Do your potential consumers even want what you have? That is a question that stops no one from entering a market, but it can determine the scale at which you enter the market. Some markets aren’t high quantity, even services are limited in the local market reach. 

So do not neglect the importance of research before you start your business, it may affect your business longevity and shape your strategy.

Keywords: strategy, brand, market research, customer, consumer research, business plan, customer service.