How to find market information

The first and obvious place to start is by searching the Internet.

For more formal research, look for a trade association that focuses in your business area. A good reference library will have - or can get - a trade association reference directory. Once you find an association (or several), contact them or visit their website to see whether they publish a directory or (better yet) a statistical review.

Next, look for magazines. Most industries have magazines that focus on the category. Subscribe to or buy the magazine, purchase several back issues, and look for industry reviews, news or trends.

Most important is what I call "shoe leather" research. Locate similar businesses and find out as much as you can about them. For example, see how many similar businesses are listed in your local Yellow Pages. Call to learn about their prices. If they have a location, park by it. Count their customers. Then get a phone book for a town a few hundred miles away, call some similar businesses, and find an owner who will talk to you. (After all, you're not a competitor, and people like to talk to other people about their businesses.) Ask questions until they can't stand answering questions anymore.

Find someone selling your type of business, and consider buying it. At the very least, you'll likely get access to their current customer list and past financial data, which will give you a better idea of how the industry works.