Continued: How Do You Undertake Business Market Research? How To Do It on a Tight Budget?

Business Market Research--Con't.: Here's an example. Let's say you live in Florida and seem to be at the epicenter of the foreclosure crisis there. The houses in foreclosure look horrible; the yards and landscaping are a mess. You come up with an idea to start a business where you will work with the banks holding the properties. Your new company will keep the houses and yards neat and trimmed and ready to show in order to shorten the amount of time that the banks must hold the properties and also to help them maintain as much value as possible. As a side benefit, you are helping the neighborhoods in which the houses sit and forestalling them from going into decline, a situation where everyone loses.

Okay, its not a bad idea and it has some potential. You should not simply plunge into the business because it is a good idea. You need to do business market research and here are some questions that you need answers to:

  1. Would bankers be interested in such a service?
  2. How much would they pay monthly for the service?
  3. Could you charge enough for the service so that you could hire landscapers and lawn people and house monitors and still make money?
  4. How long could you sustain this business?
  5. Is it a temporary business that will disappear as the foreclosure crisis recedes or is it one that could grow in the future as you move from foreclosed properties to all properties for sale, perhaps working with local real estate agencies?

These are all good questions but at this point, you do not have a clue about the answers, not really. You may have asked a couple of your friends about it and they liked it. You may even have asked your banker who was positive. But this is not business market research. Its hearsay, and you do not want to put your money on hearsay. You could do what many people do which is to launch the business and then go after customers and see what happens. Or you could do market research and get a real picture of its potential.

The best advice we can offer you is to hire a business market research professional to analyze and to research the potentially great idea. We are strong believers in not spending one cent of money where we absolutely do not have to. We are also strong believers in spending money on lawyers, accountants, real estate agents, business planners and market researchers because their advice is worth its weight in gold.

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