If you think market research is something only Fortune 500 companies do, you're wrong. Research is, in fact, far more important for small businesses. A Fortune 500 company can introduce a new product that flops and still survive because its other products are strong sellers. A small homebased business that's attempting to get off the ground with one product or service can't afford to advertise to the wrong target market or set a price that's too high or low.
Excerpted from Starting a Home-based Business