Entrepreneurs: did you devote much time/energy/money/thought to market research? Did you conduct your own or get some outside help? Or maybe you just dove right in and went with your gut feeling?

I'm conducting my own. I've been collecting secondary research for a few weeks now, and soon I'll move into the primary, more intimidating (for me, anyway) research phase. I've contacted a SCORE mentor who will hopefully help me organize my collection process. I'd love to hear what others have done...

Julia
(aspiring Virtual Assistant)

I know that market research is the best way to go. But, honestly I have no idea where to start! In the past, I just dove right on in. I started my own daycare with very little thought to whether my area could support another one. However, that is an industry that can almost always use a good provider.

Where do you start when you want to do market research? And, what do you do? If you are depending on a local market, who do you ask? Anyone know?

Can you tell this is a question that I have?

DeAnna

I'm doing research for my current "scheme" and have done so for others in the past. I've found that many of the ideas I had sounded great at the time and when I pulled all my research together and built my plan, it was going to be too little money for the effort, too ambitious, or just only interesting to me.

Most of my research is secondary but, when things look good, I start with interviews and tap into mentors and experts. I haven't found that you need a lot, if any, money. It is amazing what is out there on websites, blogs, newswire, and finding the right 'expert' to chat with. Your university libraries are great for paid content and market analysis from consulting or market research firms.

Should people do research? It depends on how much you invest and what you are willing to give up or lose by potentially not having a perspective on the market. Some things are easier to brush off the research - low/no cost and no impact with loss. But, if you think you want to build a career and support your family on the idea and you have to put in your own money or seek investors, you will need to do the research. Investors and banks won't give you money just for the idea, you need to back it up.

Here is my $0.02: always, always, always do the right research. It doesn't have to be paid, but it has to be truth! Start with your consumer, continue with your competitors and end with your consumers.
Look at blogs, websites, talk to people around you, ask your friends, get a mentor, dig into what your competitors are doing, biuld scenarios (what could happen if?), but never, ever jump on something without knowing if this idea is an AHA or not.
In spite of the conventional wisdom, the number of people who fail soon after opening a business is considerably high, part of the reson why is: that business was not answering any real need, besides the need the owner had (ha!): to make money.
As we all know (as consumers), this is not a reason good for a small business owner to succeed. If this were a reason good enough to achieve success, we would all be bloody rich!
So, don't ask yourself if you should do reasearch, but how much research you should do and when? That's another story I'll write about soon.
Let me show you some numbers to get you on the right mindset forthis: in 2006, 649,700 new firms opened their doors. In the same year, 564.900 firms closed their doors and 19,695 went bankrupt. Brutal! After 4 year from opening, 56% of the firms dissapear (not as in "Twin Peaks" - the movie, but as in "the business is just not making any money" - the reality). Scary but also very educational! So, start right, start smart.
Source for my stats: URL

Cheers and start smart!
Lorena.