Conducting a Market AnalysisAs an entrepreneur, you will develop a business plan for a product or service that you think is going to be very successful, so where do you go- you from now on? The first thing an entrepreneur must do is conduct a market analysis, which is a thorough assessment of the potential target market, competition, and need for a product or service. Conducting a market analysis also provides a realistic and honest assessment of the viability of your new idea. It also provides you with critical information and data needed to successfully start and grow a business. The first step is to identify your product; you can do this by creating a customer profile of your target market. If your target audience is a consumer, you need to determine the age, gender, and income level of your audience. If your target audience is businesses, you need to determine the size of the business, its industry, and the number of employees. Conducting market analysis and being in tune with your customers' wants and needs takes a lot of work, but it's worth it in the long run. Knowing where your consumers come from gives you the tools to correctly identify how they will respond in your market. By understanding this, you will be able to focus your attention on the details that are most important to your consumers. Targeting a niche is a great way for small businesses to take advantage of a market that larger companies can't afford to take risks in, while providing a competitive advantage that larger companies don't have. Knowing your competitors is essential to fully understanding the market. . It's important to know your industry and pay close attention to current business buying trends as well as trends within your industry. Paying attention to business trends in your industry will give you a better understanding of how to position your product successfully. Researching industry trends will also make your business plan more effective because it is based on real-world circumstances. Once you are confident that your business idea will achieve the level of success you have specified, consider ensuring that your market will be receptive to accepting your product or service. If you are investing your own capital, you will want to make sure you have protection by making sure you have done all your homework..