Market research...sounds thrilling, doesn't it? It is probablyone of the most time consuming parts of creating a businessplan,and also one of the most important. In this series ofarticles, we will define market research and talk about the variousmethods used to conduct the studies.Today, we will talk morebroadly about market research and start to define it.

A quick definition of Market Research from About.com:

"Small business owners use market research to determine thefeasibility of a new business, test interest in new products orservices, improve aspects of their businesses, such as customerservice or distribution channels, and develop competitivestrategies."

Simply put, if you do not study the likelihood that your productis needed or wanted, your business is at high risk of failure. Thisinformation can be used to develop or modify new products,establish pricing, identify customers and create targeted marketingcampaigns. It is the portion of the business planning process thathelps you identify if there is actually a customer willing to buyyour product or service. And sometimes, you find that you cannotprovide what the consumer wants at a reasonable cost to you, and soyou decide not to pursue that opportunity.

Market Research is also used in established businesses to adjustproduct specifications. When a new internet application is releasein Beta, the creators are looking for people who have an interestto sign up and use their product for a period of time, while givingfeedback about the usability. This is a great way to ensure youwill have a customer base for sales, as the early adopters of theproduct feel very connected to its development and can become veryloyal customers.

For me, market research reminds me of school...remember when youhad to do the lit review for your research papers? You spent timelooking up various sources, seeing what was already published,seeing what research hadn't been completed yet, looking for a nichethat hadn't been filled by what others were doing...this is theplace where you establish your baseline, an essential element toany good plan, and particularly helpful for measurement purposes.

Take a minute to think about your market...have you researchedwhat's available? Have you asked for feedback about your offeringto determine if you need to tweak the design a bit to make it morefunctional? Don't skip this important step of your planning processbecause you are anxious to get going on "the fun stuff". It is afoundational building block that is an integral part of beingsuccessful.

Jean Ann Van Krevelen is the Development Director of OEN, aswell as an entrepreneur. See more information on her blog, the EdgyEntrepreneur.