There are certain criteria you can use to establish whether there is a market or demand for your product or service:

• Does it satisfy or create a market need?
• Can you identify potential customers?
• Will it outlive passing trends or capitalise on the trend before it dies away?
• Is it unique, distinct or superior to those offered by competitors?
• What competition will it face - direct or indirect, local, national or global?
• Is the product safe for public use and does it comply with relevant regulations and legislation? Seek legal advice before proceeding.
• Will the market want your product or service at a realistic price?

Market research can play an important role in answering many of these questions and increasing your chances of success. It is much better to invest time researching before you invest your money. The more information you have, the better you will be able to understand your potential customers, the marketplace and how your product fits in.

Remember that although the end user of your new product or service might be your most important customer, you may have to take the needs of other parties into account, such as retailers or distributors.

Your competition

Before entering the market you need to gather 'competitive intelligence' by determining:

• how customer needs are currently met
• why customers would choose your product or service rather than your competitors', both now and in the future
• what risks you are prepared to take to launch your product or service into this market