Investigating the possible market is essential. If you are a painter and decorator or market trader merely placing a few adverts in the press and equipping your van or buying a small amount of stock to sell from a market store involves a very low risk. But if business start-up involves a very big investment in fixed assets and promotions etc it is wise to do the best market research you can. Modest but effective market research investment will try to confirm whether or not and further and larger investment is justifiable. You need to know that the market exists and that customers will really buy your idea.
Market research involves desk and field research.
Using published market data. You may look up the financial report of a competitor company at the Registrar of Companies. This means going out and asking your customers, testing your ideas and perhaps your product on them. You may do interviews using a questionnaire or over the telephone. You may offer samples to mebers of the public or organise a taste panel.