Thinking about buying an established business? As you begin your hunt for the perfect company, don’t forget to do you research. Ask business associates and friends for leads on similar businesses that may be on the market or coming on the market. Many of the best business opportunities surface by word of mouth and are snapped up before they are ever listed for sale.
According to the SBA, “To run a successful business, you need to learn about your customers, your competitors and your industry. Market research is the process of analyzing data to help you understand which products and services are in demand, and how to be competitive. Market research can also provide valuable insight to help you:
- Reduce business risks
- Spot current and upcoming problems in your industry
- Identify sales opportunities
How to Conduct Market Research
Before you start your business, understand the basics of market research by following these steps:
- Identify Official Government Sources of Market and Industry Data
The government offers a wealth of data and information about businesses, industries and economic conditions that can aid in conducting market research. These sources provide valuable information about your customers and competitors:
- Identify Additional Sources of Analysis
Trade groups, business magazines, academic institutions and other third parties gather and analyze research data about business trends. Use Internet and database searches to find information related to your location and industry.
- Understand the International Marketplace
Today’s economy is a globalized marketplace, so it’s important to understand the international factors that influence your business. These resources will help you to research potential international markets for your products or services: