How to Research Your Market

This article was written by Brad Sugars of Entrepreneur.com

Starting a business is a little like buying a car: You need to do some research before taking the plunge. First, figure out if there's demand for your product or service. Do a competitive analysis. Find a place to set up shop. And create a plan to differentiate your offering.

Doing your due diligence can mean the difference between success and failure, and it doesn't have to cost a penny. Networking, online research, informal focus groups and other do-it-yourself methods can often do the trick.

Consider the case of an event facility in the South. It started as a place to hold weddings. Located in a beautiful old house, it attracted wedding business, but wasn't turning a profit because it usually sat empty on weekdays. ...