The biggest pitfall entrepreneurs make when launching a startup is not knowing the difference between assumption and fact. Without market research, everything is guesswork.
Entrepreneurs often work closely with their first customers so they can understand how to make the product better, which is definitely a good thing to do. But often you need to cast a much bigger net to get the full scope of a market.
Who are the competitors with whom I may have to compete?
What is the business edge that I have over my competitors?
Which are the new concepts and ideas that I would like to introduce in the market.
Which product or service would I be selling?
Whether my idea or concept is unique, practical and how would it accepted when introduced in the market?
What specialized skills do I Possess that might help my new venture?
Whether my product would meet the requirement of consumers?
Whether I would succeed in providing better quality of service over leading business competitors?
What are the steps I need to take to create a demand for my product in the market?
What is the opinion of others pertaining to the strength and weakness that I have?
What is my financial strength?
What is the exact time available with me to carry out my business idea?
Market research is crucial for an entrepreneur to understand the consumer, to know whether the idea the entrepreneur had envisioned is already existent in the market in the form of another product or service. If the product or service is already present in the market, how different or similar it is to his own product or service and the steps the entrepreneur needs to take to make the product different from the one already prevailing in the market.