A small business owner must know and understand the market trends. Market research is simply an orderly, objective way of learning about people, your potential customers, and sustain your business venture. Market evaluation is the most critical element of a successful business planning, which provides the basic data that will determine if and where you can successfully sell your product or service, and how much to charge according to the market trends.
If you are thinking of starting a new business or expanding into new markets, proper market evaluation is critical to success. While it may sound deceptively simple to figure out if a market exists for your product or service, it's probably one of the most difficult challenges for a business. The process involves scrutinizing your competition and your customer base and interviewing potential suppliers. The information collected can help you adopt your product or service to better meet customer needs. In some rare cases, it might lead to a totally new, but financially rewarding venture.