What is the importance of business research?


Quick Answer

Business research helps business managers find new markets and make the most of their resources. They are important for start-ups and investors. Established businesses often use it to find new areas for growth.

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What is the importance of business research?
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Full Answer

Launching a business requires having a good idea, but it is also important to know if there is a large enough customer base to support the idea. Market research is helpful. Examination of both old and new survey data allows potential founders to explore whether or not a particular idea is sustainable. Established businesses often focus on growth, and business research helps managers find new areas to enter. While established businesses often risk a bit more than new businesses, the cost of a failed product launch is potentially significant.

Market research also helps companies of all sizes evaluate the strength of their competition, and it helps gauge the strength of a brand. Knowing whether a particular brand is effective and when it needs to be replaced generally requires using surveys and other tools. In addition, research helps attract investors. An investor needs to know how likely a company or product is to succeed before risking money, and thorough business research may be enough to convince a potential investor to take a chance. Some investors even perform their own research.

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