• Does the market want what you are offering?
  • Do people already use the services or products that you are offering?
  • Do people really need what you are going to be selling?
  • Is what you are offering something that people will really want?
• What's the competition doing?
  • Can you offer something to your customers that will make them come to your business instead of your competitors?
  • What are your competitors strengths and weaknesses?
  • What are your competitors doing that is unique?
• Can you reach your target audience?
  • Is your local market the right age group that you are looking for?
  • Do they have the disposable income to allow them to spend more freely in your business?

Once you have answered all of these basic questions and you still think you want to go ahead with opening your own business you need to do some more research about bringing this business into your local market. These are actually ways to test your local market to discover if your small business stands a chance of succeeding.

• Demographic and economic data can be used to find out if the local market you are considering is the right age range and income range that you are looking to target. You can also find out about other small businesses that offer the same or similar service or products that you are going to offer. A great place to find this information is online at the U.S. Census Bureau's website.
• Gather information about the type of business you want to open. You can get this information from associations that your industry has, or you can find this kind of information at trade shows or online or the local library.
• Business groups are a great way to help you gather business information. Your local chamber of commerce is a great resource for small business owners. Other groups focus on providing resources for small businesses as well.
• Local universities can offer you help in testing your local market by letting graduate students do a market feasibility study on your business for credit.
• Use informal focus groups, but be sure to branch away from your group of friends and family members as they might be biased. You can always go to a local coffee shop or a mall and stop random people to see if they are interested in your business. If you are already in business and are thinking of expanding you can also talk with your existing customers to see what they think of your new line of thought.

By testing your local market for your business using a variety of methods you will have more information available to you in helping you decide whether or not to open your own business.