There is no denying the fact that market analysis is crucial in positioning your product or service. However, the high cost of market research may be beyond the reach of small businesses. Here are some methods of market research home-based operators can do on their own for only the cost of their time. However, a good analysis of the market entails comprehensive market survey whose costs may be beyond the reach of small business owners. This is particularly relevant if you ve chosen a product or service that is advertised in newspapers or magazines.
Check issues a year old or two to see if the firms are still operating.
Repeat ads are a good indication that sales are being made, and there is indeed a demand for the product. Check the Yellow Pages to see how many businesses similar to yours already exists. Call them to find out how long they have been in business. While you re at it, you can also compare previous year s edition of Yellow Pages to check if the number of businesses similar to yours has increased, decreased or remained stagnant. A decreasing number of firms may be an indication of weakening demand.