Market research is the process of collecting critical information about consumer behavior and economic trends in order to determine the viability of your business idea. Before you ever put any money on the line, market research allows you to gain a better understanding of your consumer base. Throughout the process, you’ll gather information about your buyer personas, target audience, market size, economic indicators, demand and more.

A Competitive Analysis will help you gain an edge in your market by identifying and assessing your competition. By the end of your analysis, you should know who your primary competitors are, where you have the best opportunity to enter the market, what obstacles your business faces in the market and any other factors that could impact your performance in the market.

To find assistance and resources to help you complete your business’s market research and competitive analysis, check out the US Small Business Administration.

You’ll also find many great free resources online such as Hubspot which offers a step-by-step guide to conducting your own market research and competitive analysis.