A Market Research Checklist You'll Actually Use
Jump to
If “market research” feels like this huge, vague thing you’re supposed to do before writing a plan… you’re not alone.
Here’s a simple way to get started—even if you’re starting from zero—without paying for expensive reports or getting stuck.
Step 1: Get crystal clear on the question you’re answering
Before you Google anything, write down the basics:
- Who are you selling to? (specific customer segment)
- What problem are you solving?
- Where will you sell? (local, regional, national, online)
If you can’t answer these yet, that’s okay—your first “research” is talking to real people (more on that below).
Step 2: Do quick “desk research” to size demand and understand the market
You’re looking for three things:
- Market demand: Is this market growing, shrinking, or stable?
- Customer behavior: How do people buy this today? What do they care about?
- Competition: Who’s already winning, and why?
A simple rule: you don’t need perfect numbers—you need reasonable, defendable assumptions you can cite. Don’t overthink it.
Step 3: Build a one-page competitor snapshot (in 30 minutes)
Pick 5 competitors and jot down the following:
- Pricing (or package ranges)
- Key features and what makes their solution unique
- Who they serve best (their ideal customer)
- Reviews: the top 2–3 “love” points and “hate” points
This exercise will give you immediate clarity on how to position yourself—and helps you nail down what makes your solution unique.
Step 4: Talk to customers (even 5–10 interviews change everything)
If you do only one kind of research, do this.
Ask people who might realistically buy from you:
- “Walk me through how you solve this today.”
- “What do you like about your current option? What frustrates you?”
- “What would make you switch?”
- “How would you evaluate options?”
- “What would you expect to pay?”
You’re not looking for compliments—you’re looking for patterns.
Step 5: Turn your notes into a plan-ready market analysis (the 4-part version)
When you’re ready to write, your market analysis becomes much easier if you organize it into four chunks:
- Market overview (size, trends, why it matters)
- Target customers (who you serve + what they value)
- Competitors (your landscape + your advantage)
- Sales Strategy (how you’ll reach customers and win)
That’s it. No fluff—just the evidence that supports your plan.
Helpful free sources (so you’re not guessing)
If you want credible data without paying for reports, start here:
- Government and public datasets (great for demographics, employment, spending patterns)
- Industry associations and trade groups
- Local/regional economic development sites
- Competitor websites, pricing pages, and reviews
The key is to cite your sources and explain how they connect to your assumptions.
Bonus: Use AI as a helper (not a substitute)
AI can speed up tasks like:
- Brainstorming customer segments
- Drafting interview questions
- Summarizing competitor positioning
- Turning raw notes into a first draft of your market analysis
But it works best when you feed it real data (your notes, your observations, real source links) and treat it like a research assistant—not an oracle.
How LivePlan can help
If you’re writing a business plan for funding (bank loan or investors), LivePlan includes market research and analysis—saving you hours and hours of time and giving you real insights immediately.
Noah Parsons
Before joining Palo Alto Software, Noah Parsons was an early Internet marketing and product expert in the Silicon Valley. He joined Yahoo! in 1996 as one of its first 101 employees and become Producer of the Yahoo! Employment property as part of the Yahoo! Classifieds team before leaving to serve as Director of Production at Epinions.com. He is a graduate of Princeton University.Noah devotes most of his free time to his three young sons. In the winter you'll find him giving them lessons on the ski slopes, and in summer they're usually involved in a variety of outdoor pursuits.Noah is currently the COO at Palo Alto Software, makers of the online business plan app LivePlan.
