How can market research benefit a small business owner?
Market research can and does help any business regardless of its size. However, such research is arguably more important for small business owners because they have limited resources and are therefore less able to absorb the costs of mistakes that they might make if they do not have good market research.
Market research basically involves finding out what sorts of niches and opportunities exist in a market. It involves looking at what sorts of things there is demand for. It involves looking at what competitors are doing and what one’s own firm can do. When all of these things are put together, they can help tell a small business owner what sorts of ventures are and are not likely to succeed. This is, of course, very important. A small business owner does not, for example, want to use a great deal of his or her limited resources in trying to create some new product only to find that there is no real market for that product. Therefore, good market research is very important to people who own small businesses because it helps them understand when they are likely to be able to make money in a new way and when they are not.