A test market, in the field of business and marketing, is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out.
Before you kick off your project, it is probably worth checking whether your small business idea is sound.
Just as people will never tell you that your baby is ugly, you will seldom get an honest opinion on whether your business idea is sound.
There is only one thing that you need to do:
Put simply, all you have to do is ask a representative sample of your prospective customers
Is there a market for this type of product or service?
Would they be likely to use or buy it?
How much would it be worth or how much would they be prepared to pay?
If you are thinking of opening a shop you could ask a number of people on the pavement.
Try it out – you could be surprised by the results. This approach could save you a lot of money.
A word of caution – don’t share your idea on an Internet bulletin board. You may find that someone steals it! It is a more common problem than you may think.
So before you rush out to try your small business idea – it may just be worth test marketing it.