Research and develop your business ideas

Is there a market for my idea?

There are certain criteria you can use to establish whether there is a market or demand for your product or service:

• Does it satisfy or create a market need?
• Can you identify potential customers?
• Will it outlive passing trends or capitalise on the trend before it dies away?
• Is it unique, distinct or superior to those offered by competitors?
• What competition will it face - direct or indirect, local, national or global?
• Is the product safe for public use and does it comply with relevant regulations and legislation? Seek legal advice before proceeding.
• Will the market want your product or service at a realistic price?

Market research can play an important role in answering many of these questions and increasing your chances of success. It is much better to invest time researching before you invest your money.

Market research techniques can be basic or sophisticated. You could:

• canvass the opinion of friends and colleagues
• survey the public about whether they would use the product or service
• ask customers of competing products what improvements they would like to see
• use focus groups to test your product or service
• monitor your competitors' activities
• look at what has and hasn't worked in your industry or market niche
• hire a market research agency
• try a small scale trial launch - perhaps through your own website or one of the online outlet or auction sites

It is very important that you are as thorough in your market research as possible, as mistakes made at this stage of development could prove costly later on. Remember, the more information you have, the better you will be able to understand your potential customers, the marketplace and how your product fits in. For more information, see our guide on common mistakes when starting up - and how to avoid them.

Subjects covered in this guide

• Introduction
• Finding and developing your new idea for a business
• Is there a market for my idea?
• Plan the development of your idea
• Finance the development of your idea
• Sharing your ideas with others
• Test the market
• Here's how I exploited a gap in the market

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