Once you have developed a business idea, you must conduct research on whether there is a need for the service or product. You can do this by reading trade magazines, newspapers, articles, and books on the subject. Talk with people who are already in business or a related business about what their observations have been.
How many people in your area are already in business. Could the market bear another entrant and still be lucrative? Are there enough prospects? Could you provide a unique service that no one else is providing?
While researching, you will determine the target market for the product or service. Write down the age group, occupation, or interests of the people who need your product. You may have a hobby or craft that you enjoy, but there may not be a need for it.
Be honest with yourself and consider the trends of the industry before going into business. Many people fail in business because there is no need for their services.