You always need to evaluate an area where you want to start a business. Every major company that expands to a new area does an evaluation to determine market saturation and demographics. If you find that there are a lot of window cleaners, that shouldn’t necessarily discourage you from starting a business, that just means you need to think harder about how you can squeeze in - how you can differentiate yourself and find a good niche.
I suggest you read [I]The 22 Immutable Laws of Marketing. [/I]It talks a lot about how to find your place in the market. It’s like fishing, if there are a lot of people fishing in one spot, you either need to fish further down the stream (pick a different geographical region) or use different bait (use unique marketing to attract a unique demographic).
Sometimes you have to try a quite a few different marketing methods to see what gets a bite. And try a few different areas of the region you live in. This itself is market research. Newspaper ads, mailers, website, facebook advertising - they all have a different effect and will appeal to different segments of the population. Your competition usually isn’t reaching everyone.
I notice that different marketing methods have had very different results. When I run a newspaper ad, most of my customers will be older folks. My website, on the other hand, usually draws a response from busy professionals.
Sometimes the geographic thing can be pretty specific. You don’t have to move to a different state or anything. I have noticed with flyering that even of certain neighborhoods of the same income, one will be very receptive and another will give you the cold shoulder. The receptive one was just overlooked by other window cleaners for some reason. In some areas some neighborhoods are “locked up” while others are wide open. [B]The only way to find out which are which is to try and see what happens.[/B]
Marketing gaps are also something to look for. If there is a very weak web presence where you want to start a business, then try putting a lot of energy into that. If everyone has killer websites that are super optimized with a ton of backlinks then it may be a waste to focus energy there because you won’t even be found a google for awhile (that may be more of a long term strategy), in that case try beating the streets and fliering.
If there are a ton of low priced window cleaning services, try shooting for a premium “boutique” service. If the high-end seems locked up and the low-end is locked up, shoot for the middle income crowd.
[B]Whatever everyone else is doing, do the opposite. Find the gaps and exploit them. That’s the only way to survive in a saturated market. Specialize. The more crowded the market, the more some people think they need to cast an even wider net. It’s the exact opposite. The more crowded the market, the more you need to specialize.
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That’s just my two cents from two years of marketing my business and reading every marketing book I could get my hands on in the last six months. Hope it helps.