How to do market research for a business idea

Market research means finding out who would buy your product, what they use today, and how many of them there are. Start with data that already exists, then talk to a few real people, then look closely at your competitors. The US Small Business Administration describes it as a way to confirm and improve your idea before you spend much on it.

Updated 3 October 2026

What is market research, in plain words?

It is a set of questions you answer before you build. Who has the problem? How do they solve it now? Is there enough of them in the place you plan to sell? The SBA puts it this way: market research "blends consumer behavior and economic trends to confirm and improve your business idea." [1]

You do not need a large budget for this. Most of the work is reading, asking and writing things down.

What is the difference between primary and secondary research?

Secondary research uses information that someone else already collected. The SBA says existing sources "can save you a lot of time and energy," but warns that the information might not be as specific to your audience as you would like. [1]

Primary research is when you collect the answers yourself. The SBA lists surveys, questionnaires, focus groups and in-depth interviews as ways to do it, and says that asking consumers yourself can give you a more detailed understanding of your own target audience. [1]

Do both, in this order. Read first, so your questions to people are sharper. Then ask, so you learn what the numbers cannot tell you.

Where can I find free data about my market?

Official statistics offices publish data that you can use without paying. Which one fits depends on where your customers live.

United States. The SBA points to federal statistics from agencies such as the Census Bureau, the Bureau of Labor Statistics, the Bureau of Economic Analysis and the Federal Reserve, and says existing sources can show industry trends, demographics and household incomes. [1] The Census Bureau says its data can show where people who match your ideal customer live and how many competitors are already in an area. [2] Its Census Business Builder offers interactive maps of an area and type of business. [3]
Sweden. Statistics Sweden says its Statistical Database is free of charge and holds official statistics from Statistics Sweden and 15 other government agencies. [4]
European Union. Eurostat is the statistical office of the European Union. [5] Its database lets you customise datasets and download them in different formats. [6]

Write down the number, the table it came from, and the date you read it. A number without a source is hard to trust a month later.

How do I research my competitors?

The SBA says competitive analysis "helps you learn from businesses competing for your potential customers." [1] It suggests listing competitors by product line or service and by market segment, and also thinking about indirect competitors, the businesses that solve the same problem in a different way. [1]

A simple table works. One row per competitor. Columns for what they sell, who they sell to, their price, and what customers seem to like or dislike. Then add one last column for the thing they do not do.

Does market research include the numbers?

Yes. The SBA's startup costs page explains the break-even point: "the point at which total cost and total revenue are equal". [7] Once you have a rough price from your competitor table and a rough count of possible customers from the statistics, you can ask a simple question. How many sales would I need each month to cover my costs, and does that look possible in my area? The startup budget template gives you a place to list those costs.

How do I ask people good questions?

These are practical tips, not rules from a source. Ask about what people did in the past, not what they might do. When did you last look for this, and what did you do? gives you more than Would you buy this? Do not describe your idea first. Listen, and write down their own words.

If you collect names or contact details, keep only what you need, and tell people why you are asking.

What does a small example look like?

This is an example, not a real person. Suppose someone in Malmö wants to start a dog-walking service. They look up the number of households in each district in the national statistics database. They list five dog-walking businesses in the city and note each one's price and opening hours. Then they ask ten dog owners how they handle the workday and what went wrong the last time. Within a week they know which districts to try first and which question they still cannot answer.

How do I know when I have done enough?

You are never fully done, but you can stop when new answers stop surprising you. If your last three conversations told you the same thing, and your numbers point the same way, you have enough to make a small decision. If they point in different directions, that is also a result. It tells you which part of the idea to change before you spend money on it.

A short checklist

I can say in one sentence who my customer is.
I found at least one official number about the size of that group, and wrote down its source.
I listed my direct and indirect competitors.
I asked real people about what they did, not what they would do.
I wrote down what I still do not know.

What should I do next?

Research tells you where to look. It does not tell you that people will pay. The next step is a small test with real people; see our guide to validating a business idea without spending money. To see what is worth learning first, try the idea check. When you know the size of your market, work out how long your money will last with the costs and runway guide.

Easeable helps a person structure an idea, take it into execution, and run the business with them. You can describe your idea in the box at the end of this page.