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Understand your market
A practical guide to understanding who your customers are, what they need , who else serves them and how to spot opportunities so you can make better business decisions.
Know who you’re for
The clearer you are about your market, the easier it is to make decisions, focus your time and create an offer that fits. This guide will help you understand:
who your ideal customer is
what problem they want solved
where they currently look for solutions
what influences their decisions
1. Start with the customer
Market research begins with understanding the people you want to serve. The more you know about them, the easier it is to create the right offer and communicate in a way that resonates.
Who they are
Look at demographics, location, job roles, interests and the challenges they face.
What they need
Understand the problem they want to solve and what a successful outcome looks like for them.
How they decide
Find out what influences their decisions, from recommendations and reviews to price and trust.
2. Look at the wider market
It’s important to understand the bigger picture. This will help you see how your business fits, what’s changing and where there might be opportunities.
| Area to check | What to look for |
|---|---|
| Demand | Is there a consistent need for what you offer? Look for signs of growing, stable or declining demand. |
| Trends | Keep an eye on industry trends, customer behaviour and changes in technology or regulation. |
| Location or channel | Consider where your customers are, both geographically and online, and which channels they use. |
| Price expectations | Get a sense of what people are willing to pay and how this varies across different customer groups. |
3. Review your competitors
Looking at your competitors helps you understand what’s already available, how they position themselves and where there may be gaps you can fill.
| Competitor | What they offer | Strengths | Gaps to notice |
|---|---|---|---|
| Competitor A | Similar products or services | Well known, strong online presence | Higher prices, less personal service |
| Competitor B | Alternative approach or niche | Clear positioning, good reviews | Limited range, not local |
| Competitor C | Budget option | Lower prices, wide availability | Fewer features, mixed reviews |
4. Spot the opportunity
The goal isn’t to copy what others do, but to find where you can stand out. Look for unmet needs, underserved customer groups or ways to do things better, simpler or differently.
What customers want
Identify the needs, problems and outcomes that matter most to your audience.
What others offer
Look at what’s already available and how it meets those needs.
What’s missing
Spot gaps, frustrations or opportunities for a different approach.
How you can respond
Find a way to add unique value that fits your skills and resources.
5. Research without overcomplicating it
You don’t need a big budget or complex tools to understand your market. A few simple methods can give you valuable insights.
Talk to customers
Have conversations with existing or potential customers.
Review enquiries
Look for common questions and patterns in what people ask.
Read reviews
See what people like and dislike about similar businesses.
Observe competitors Check their websites, social media and marketing.
Check search terms See what people are searching for related to your offer.
Test ideas Try small experiments, such as a new service or message, and see how people respond.
Keep it practical
Use what you learn to make better decisions about your offer, pricing, marketing and where to focus your time. You don’t need endless research, just enough to understand your market and stay informed as things change.
A simple market review checklist
Use this checklist to keep track of what you know about your market and where to focus next.
☐ I know who my target customer is.
☐ I understand the problem they need solved.
☐ I know what alternatives they already use.
☐ I know how my offer is different.
☐ I understand typical price expectations.
☐ I know where customers are most likely to find me.
☐ I review customer feedback regularly.
☐ I revisit my market view as the business grows.
Related guidance in Running the Business includes Set goals and make a plan, Pricing your work, Market your business and Track your progress.
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