The Importance of Quality Market Research

When it comes to starting a new business, there are some key things that should be researched or completed before you risk your startup funds. Perhaps the most important first step is researching your market to confirm your business idea is viable. Completing a comprehensive business plan is another essential step and you should factor in the cost of California business insurance.

Here is a basic summary of how you could conduct your own market research:

•Primary research. Asking your target demographic relevant questions is the purpose of primary research. This can be achieved by a mail questionnaire, a phone survey, personal interviews and/or group discussions. Depending on the quality and volume of the answers you receive, it might not be necessary to cover all these areas.

•Secondary research or sources. This part of your market research involves assessing current information and statistics that have already been collected. The business department of your local public library is an excellent place to start. Next step is checking trade associations and organizations for commercially sourced data. The final place to check for pre-sourced information is educational institutions such as universities and colleges.

You can hire professionals to perform this critical step on your behalf, but the cost may be prohibitive, so take your time and remember the outcome may determine the success or failure of your business idea. Should your research go well, move on to writing your business plan, taking into account the cost of the California business insurance coverage you’ll need, along with any other start-up costs.