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What is Your Market?

Before you start a business it is essential to research the market that you intend your business to operate in. The two main questions you need to answer are, "Is there an existing or potential market for your product or service?" And, "Is it large enough to support your business?"

Does the market exist?

In any business you will be able to make some sales, but you need to research whether you will be able to sell enough to make your business profitable.

Can you create a new market?

Perhaps you see a gap in the existing market that is not served by an existing product or service. Or perhaps you see a completely new market just waiting to be tapped into.

Who are your potential customers?

You need to identify the type of customers that who are looking to attract to your business and whether you will be able to get them to be your customers.

What is the size of the market?

There may already be a market for the business area that you intend to operate in, but is it large enough to support your business plus the existing businesses.

How much competition is there?

Have the well established companies already cornered the market in the area that you intend to enter. Check out the products or services that they offer to see if you will be able to compete with them.

Taking time to carry out accurate market research can help you avoid making the wrong decisions about the business you are planning to start, so it is well worth the effort to do it properly.