Studying the businesses that you’re modeling yourself after is one thing, but what if you are writing a business plan for a totally unique business that no one has tried before? Theoretically, this could put you in a great position to capture a niche. On the other hand, it could just as easily mean that there is no need for what you are proposing, and the business will flop. Your business plan has to show that it will be the former and not the latter. So you need to know how to market research when no one else has done what you want to do. The most ideal situation is if no one has done what you want to do in your particular geographical area, but there are examples of successful businesses elsewhere that you can study.
For example, remember back when Seattle was famous for having the best coffee anywhere? A friend of mine wanted to borrow the Seattle tradition of having latte stands on every corner for business people walking to work. She wanted to import the idea to New York City. I think it worked! She had an idea and her timing was perfect. She was ahead of the curve. For her, market research would include studying the latte stands and customers in Seattle. But then, she would also have to study the market in New York. Do people actually spend time walking on the street? Are there other street vendors? How do they do? What do they sell? How much coffee do New Yorkers drink? Even a great business idea won’t work if the market isn’t right. You have to find out if they want your product. Don’t be afraid to actually send out a survey and ask! But be sure to target your survey to the right audience.
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