Projections and Market Research Data

[Vanight]

Ok, maybe its simply a chicken and egg thing I will not be able to get around. I need startup capital to start a business. In order to write a business plan I need marketing research. Typical market data costs from $500 to $3000 for a report from a reputable company. So how does one present market research for a business plan without spending money for a report? I know there is the old fashioned way which is, developing a questionaire and spending a month to do it yourself.

Projection: I have heard of the WAG technique. Are there standard growth formulas that exist somewhere? If I come up with a set of products and services and say. I will charge X and will get X amount of new sales a month it would be nothing more than a wild ass guess (WAG).

How do you do it the correct way?

Thanks,

Vanight

[stratigen]

Originally Posted by Vanight

Ok, maybe its simply a chicken and egg thing I will not be able to get around. I need startup capital to start a business. In order to write a business plan I need marketing research. Typical market data costs from $500 to $3000 for a report from a reputable company. So how does one present market research for a business plan without spending money for a report? I know there is the old fashioned way which is, developing a questionaire and spending a month to do it yourself.

Projection: I have heard of the WAG technique. Are there standard growth formulas that exist somewhere? If I come up with a set of products and services and say. I will charge X and will get X amount of new sales a month it would be nothing more than a wild ass guess (WAG).

How do you do it the correct way?

Thanks,

Vanight

Hi,

I've produced more than 100 business plans, and never paid for an external market report. There is a vast amount of free data out there, from reliable sources.

And, where there are gaps, you should use reasonable assumptions (as opposed to wild guesses). After all, I would hope that, if you're going into business, you have some grasp of the costs, revenues, margins, etc.

Regards

SJ.