Finding new markets for your business

Market research is the process of collecting data about a market, service or product. It’s used to analyze the current situation and pave the way for a product launch or increased sales. The market research definition suggests that the study will shed light on the consumer’s habits and needs, the economic shape of the industry and the competitors’ state of affairs.

In today’s rapidly changing business environment it may be necessary to seek new business opportunities. So how do you identify new market opportunities?

Here are four steps to get you started:  

1. Where are we now? - Start by understanding the direction of your business. Review the resources, strengths and capabilities of your business. Carry out a SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats analysis) to help you to assess this and if you have employees be sure to ask them for their ideas and input.
   
   
2. Demand - If your business has been trading for some time your business is likely to hold a wealth of customer and sales information. This information can be analysed to see who exactly your customers are, where they are, how much they spend and how they pay. Look for patterns and see if you can find new customers that this pattern may apply to.  
   
   
3. Supply - The next step is to look at existing suppliers in the marketplace who are your direct and indirect competitors. Indirect competition is from companies who are offering substitutes to your product or service. Look at what they are offering and try to establish what advantage you might have over them. 
   
   
4. International opportunities – If your existing market in the UK appears to be static or saturated there could be overseas markets that are not yet exploited. You can find market information on overseas markets from the Department for International Trade (DIT).
   
   
5. Prioritise and test – Once the research and analysis has been completed you should select markets to focus on based on ones which have the best strategic fit with your business. Then you can start to prepare your plan and test these markets.