How to conduct a market research services

A novice entrepreneur who wants to open his own business in the service sector must first conduct a comprehensive analysis of the potential market and, based on the results, determine whether the services he offers will be in demand and to what extent. Without such an analysis, his business could soon end in failure.

Instruction manual

1

First of all, evaluate the market conditions, that is, collect information on the ratio of supply and demand for services that you plan to provide. If it turns out that in this region the market is oversaturated with offers of similar services, and there is very fierce competition, it will not be easy for a new entrepreneur to attract a clientele. In this case, it makes sense to think about other types of business. Or, from the very beginning, it’s worth making an effort to stand out against the general background, attract the attention of potential customers, for example, by setting more favorable prices than competitors, by conducting promotions, etc.

2

A very important indicator is market capacity, that is, the total value of the cost of services that consumers can buy for a certain period of time. You can evaluate it using statistical data or opinion polls. A good and inexpensive way is to question potential customers at their place of work. Carefully think through a list of questions. It should be short, clear and not cause irritation in people.

3

It is also necessary to assess the development trend of the service market, that is, find out whether potential customers will use the services at about the same level as before, or the need for these services will increase, or it will decrease. Here a lot depends on the economic situation in the country in general and this particular region in particular. For example, if an entrepreneur decides to start work in the field of tourism services, economic stability will be favorable for successful business, and economic turmoil will probably lead to a drop in demand for permits.

4

And, of course, it is absolutely necessary to collect as complete and accurate information as possible on pricing policies in the services market. Try to get this information from various sources and carefully analyze it. Based on this, determine the prices of services so that they are more attractive than the prices of your competitors, and at the same time cover all costs and provide a more or less acceptable level of business profitability.