While researching “market research”, I found it’s one of those topics that can be overwhelming, simply because I had to go through endless sources, most of which are very similar, and each carrying only a small piece of the puzzle. Commercial sources include research and trade associations, banks and other financial institutions, and publicly traded corporations. This can help you conduct an accurate market analysis to validate your business idea. To put it simply, they’re not. How? It should help you do some initial tests that will verify that your solution is actually addressing a real problem—and many startups don’t last simply because founders failed to figure out if anyone was interested enough in their solution to pay for it. Sometimes you'll have to extrapolate information from different sources to get the information you're seeking. If 100% of entrepreneurs built a minimum viable product to validate their ideas, we’re certain they could bring the risk down significantly. The market for a landscaping business includes all the homes and commercial properties within a logical reach. For example, Amazon shows 20,000+ results for ‘smartwatch,’ meaning it’s a popular product amongst sellers. Entrepreneur Quiz: Do You Have What It Takes to Succeed? The market for downloadable e-books over the internet includes everyone connected to the web. Doing a market analysis might sound overly daunting and formal, but don’t be dissuaded. As always, there’s a lot of stuff out there, so make sure you’re depending on reliable sources. Firstly, I would like to cover investors’ motivations behind requesting a market analysis, as well as discuss the importance for startups to do it right. There is plenty of other information you can use in your market analysis here as well. Here’s where you’ll find demographics you can use to figure out your market share. That said, it is important not to inaccurately inflate your market size. By now, you should have made a decision about what idea to pursue and what to let go. Be able to show what the total market is for your business. Your market analysis should include an overview of your industry, a look at your target market, an analysis of your competition, your own projections for your business, and any regulations you’ll need to comply with. Determine that the need for your product or service is big enough that people will pay for it. b) the main players (all vendors/competitors) and lastly c) pricing. Who are my competitors, how do they operate and what are their strengths and weaknesses? These are frequently overlooked as valuable information sources even though more research is conducted in colleges, universities, and technical institutes than virtually any sector of the business community. But the good news is there are ways to lower (and even eliminate) it. Addressing these issues is essential if you are seeking investment or money from a lender, and everything has to be legally squared away and above board. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. They tell all of their friends, relatives, and even their dog about it, and then passionately implement that idea with everything they’ve got. Depending on where you post, you can get anywhere from one to a dozen replies to your questions. Even if you’re a sole proprietor or don’t intend to borrow any money to get your business off the ground, it’s important to have a clear plan in place. This will result in a larger opportunity. For new startups, market research is a critical key element of any entrepreneur’s business plan. Ultimately, your market analysis should enable you to: Avoid putting a lot of resources and time into creating a product or service before you’ve determined that your solution is needed.