Startup cost
$25k
TRUiC Business Ideas
How to Start a Market Research Firm
Decision Snapshot
Market Research
Idea Score
69
Profit margin
41%
Break-even
9 mo–24 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Medium
Time commitment
Full time
Part 1 - How to start a Market Research Firm business - Background
Market research firms offer specialized marketing services to their clients. They collect and analyze data to determine how well their clients are connecting with their target audience. Additionally, these firms identify industry trends and advise clients regarding what tactics they should continue and what new strategies should be implemented.
You may also be interested in additional online business ideas.
Our guide is in 3 parts:
- Part 1 - How to start a Market Research business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a market research firm?
Those who are limited in capital have found success working out of a home office the first few years. However, if your immediate plan is to build a team and meet with clients in an office setting, you will need to invest in a professional office.
The following are standard costs associated with setting up an office:
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Lease – Cost varies, depending upon your region. Location should be easily accessible and centrally located.
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Office equipment – Computers, phones, and business software applications.
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Market research software – There are a number of software applications available, with many designed with a specific type of client or industry in mind. As time goes on, it might be cost-effective to employ a team of software developers that can build a software solution specifically geared towards your niche.
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Payroll and associated expenses – To attract (and retain) the very best in the industry, you must provide your workforce with pay relevant to their experience.
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Professional fees – In this business endeavor, it is recommended that you seek the guidance of specialized professionals. Hire an accountant to handle the books and an attorney to draw up contracts, etc.
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Supplier’s fees – Once you gain your first client, there will be supplier’s fees associated with each project.
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Insurance – Speak with a licensed professional regarding coverage requirements.
Should you opt to start out as the sole contributor to the business, start-up expenses would be fairly minimal compared to many business ventures. Owners should budget for a minimum of $25,000 in start-up expenses.
What are the ongoing expenses for a market research firm?
In addition to the standard overhead expenses that come with leasing an office space, expect to incur the following costs:
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Payroll – Offer an appealing benefits package to attract and retain the industry’s top talent.
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Supplier fees
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Website hosting
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Software and/or software developers
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Professional fees
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Marketing
Who is the target market?
There are a number of different paths you could take when it comes to defining your target market. The key is to find your niche and become an expert in this. As you build your team, hire quality professionals who have carved out their own niche.
What is your area of expertise? Do you want to work for direct clients or survey advertising agencies, consulting firms, research departments, or survey companies? Are your strengths in B2B market research or job satisfaction measurement?
How does a market research firm make money?
Your firm will generate revenue from each paying client. One customer’s needs will be different from the next. Your pay is defined by their short and long-term goals, the size of the company, and their budget. These will, hopefully, be ongoing clients that you build relationships with. Their growth signifies your value. The value your firm adds to the enterprise will define their needs moving forward, your role in this, and how much you’re able to charge each client.
How much can you charge customers?
Fees vary, depending upon the scope of the project. Two hundred phone surveys could bring in between $5,000 and $15,000, while mail surveys would generate $5,000 – $7,000 in revenue.
How much profit can a market research firm make?
Profits vary, depending upon ongoing expenses, the number of contracted clients, and the level of services you provide them. The National Average for a single employee business is just over $51,000.
How can you make your business more profitable?
To increase your profit margins, consider:
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Developing a full service marketing firm. Offer a full suite of services, such as content marketing and multimedia advertising firm
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Develop industry-specific business management and marketing tools and software solutions
Day-to-Day and Growth
What happens during a typical day at a market research firm?
Your marketing firm’s top priority is connecting your clients with their current and potential clients. This means that the bulk of your day will be spent conducting research. This is an ever-evolving field. Your clients’ customers are, in essence, your customers. Their needs are dynamic. Stay up-to-date on the latest trends and innovations in technology, as well as new research tools and methodologies.
When you’re not researching directly for a client, you are researching for your own firm and its future clients. To realize success in this industry, it is critical that you establish yourself as a thought-leader. A portion of each day is spent writing, both for your own business and your customers. Publishing white papers, blogs, and articles will help you make connections, marketing your business in the process.
Meeting with both clients and potential customers also takes up a great portion of each day. Some meetings may require travel, while others can be done via online conferencing. Scheduling, answering emails and phone calls, and other administrative duties are equally as essential to the success of your business.
What are some skills and experiences that will help you build a successful market research firm?
Regardless of how large you envision your organization growing, this endeavor will require attention to detail and strong leadership. A balance between confidence and a willingness to learn and grow is also critical. Industry leaders indicate strong bargaining skills would also prove beneficial.
While a marketing degree is not required, it would prove beneficial. It is recommended that you have a background in this industry, with significant knowledge in marketing, research strategies and tools, and qualitative and quantitative analytics. Since surveys are the most common research tool, it is essential that you be well-versed in the art of questionnaire creation. This requires strong communication and writing skills and naturally connect to individuals of every demographic.
What is the growth potential for a market research firm?
This industry is recession-proof and there will always be a need. The key to achieving significant growth is in putting your own skills to work for you. Before embarking on this business venture, consider what your long-term business goals are. Where do you envision this going? Technology has made everyone an “expert” in marketing and research. With a winning combination of talent and the proper tools, you’ll have the option to remain small and selective on your clients, or grow to a global scale. Both are equally rewarding paths.
What are some insider tips for jump starting a market research firm?
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While it does not have to be complex, an informative and professional website is critical. This is how you will showcase what sets you apart from the competition. If you are unable to capture your target audience, how will you do so for your clients?
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Make sure your website is mobile-friendly. Don’t use Flash Player.
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Develop connections with leaders in your targeted field(s). They could be your greatest resource. Online magazines, government resources, published articles/books, and online encyclopedias are also great resources.
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Become a member of associations such as the American Marketing Association (AMA) and Data & Marketing Association (DMA).
How and when to build a team
When you build your team is up to your vision and the capital you have to work with. Thoroughly research each new candidate. Everything they do reflects back onto your firm.
Surround yourself from the beginning with a small team of mentors who you can trust. Pass that knowledge on, becoming a mentor for others just starting out in the industry.
Recognize your strengths and weaknesses and employ a team accordingly. Turn to legal and accounting professionals for their specialty, and hire an administrative staff that can handle clerical staff.
Part 2 - Is a Market Research Firm business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Market Research business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Market Research Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Market Research Firm business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.