Company creation project: how to do a market study

Verified 04 November 2025 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

Do you have a project? Doing market research is essential for succeed with your project of company creation. Market research can tell whether or not your project has a chance to be profitable. It must be done in several steps.

Step-by-step approach

What is a market study?

Market research consists of precise description andanalysis details of 4 elements which constitute your market, i.e.:

  • The product you are going to sell:offer
  • Customers who will buy it: the request
  • THEenvironment : time, place, trends, technologies, competitors, legislation, etc.
  • The way you're going to sell it: distribution channels and business strategy (marketing).

What tools to use to conduct a market study?

To carry out your market research, you need following tools :

  • Field surveys
  • Questionnaires
  • Research (internet, official websites, business websites, specialized press, social networks, blogs)
  • Analyses and conclusions based on the information collected.

For collect this information, you can query the following different interlocutors:

  • Your competitors
  • Entrepreneurs in the sector
  • Your future customers
  • Project coaches:
    • CMA: titleContent
    • Associative networks of entrepreneurs: Réseau Entreprendre, BGE Support for entrepreneurs, Réseau Initiative France, France Active and Adie (association for the right to economic initiative)
    • France Labor (formerly Pôle emploi)
    • Nurseries of companiesetc.

The Resource and Information Center on the World of Company (PRISME) makes available (only in consultation on site at the BNF: titleContent) market studies covering all craft sectors in France and abroad.

Bpifrance Création provides free information and advice or paid support for project leaders. You can consult the Swot method, which helps you identify weaknesses and opportunities in your company project.

Please note

Your analyses must be based on reality on the ground (market) and on encrypted data. The market study consists of information quantitative but also qualitative.

For tips and practical examples, you can consult the contents of CCI Builder. For example:

Market research methodology: our tips for not missing anything

CCI Builder

Pour en savoir plus

1re possibility: make yourself

As a project leader, you can realize yourself your market research.

You don't need to have done economics studies to do your market research. Just take the necessary time.

2e possibility: have a third party carry out

You can make realize your market research by a professional, but it is imperative that you were part of it up close.

As a future entrepreneur, you must get involved in your market research.

The following organizations may conduct this study:

  • Professional public or associative : CCI: titleContent, CMA: titleContent, Network Undertake, BGE Support for entrepreneurs. The cost of the service is low or free.
  • Some business school students : low cost or free
  • Some private study firmsfor example, experts in companies, taxation, accountants, etc. The cost of the service is paid (between €2,000 and €7,000 approximately), but funding is possible.

Your offer corresponds to your product or at your service.

You must describe this offer by providing information qualitative.

It's about answering precisely to questions following:

  • What is your product, what is its sound? image in the minds of consumers? What does it symbolize?
  • What is its added value compared to competitors' products?
  • At which need is he answering?
  • What solution does he bring?
  • What hope does he bring?

Your request corresponds to your future customers.

You must describe it with information qualitative.

For this, be the most accurate possible.

It's about responding to the questions following:

  • Who is your product or service offering for?
  • Where live your future customers? How?
  • What is their age, their gender?
  • What are their habits, their hobbies?
  • What are their problems ? And the solutions that they choose?
  • What are their social relationships? Their networks? Their means of communication?

Several tools can make it easier for you to analyze customers, for example the following CCI Builder :

Understanding customers: several examples

CCI Builder

Pour en savoir plus

The Canvas method allows you to analyze the needs of a customer:

Working on the needs of its customers: the canvas value proposition

The environment of your project consists of all the parameters exterior that go influence your offer and your request.

You must respond the following questions:

  • What is the market trend?
  • What are your main competitors? What do they bring more or less than you to the market in terms of satisfaction?
  • Is there an upcoming event that will change the context? Examples: the Olympic Games, a factory closure, the establishment of a supermarket, etc.
  • In what technological environment will your product or service appear?
  • Is there any specific legislation that constrains or changes your strategy?
  • Have you planned the ecological impacts of your project and the solutions to be provided?

Please note

It may be useful to create a watch over your competitors, i.e. monitoring their marketing developments, their developments, etc.

You can use theDirectory of companies like tool to view the companies located on a territory and according to their domain activity, via advanced search.

Company Directory: Find all the information in a company

You can also use the competitive analysis tool for a market called “Porter's 5 Strengths”.

Analysis of the competition of a market by the method called “Porter's 5 strengths”

Bpifrance Creation

Pour en savoir plus

You must determine how you will sell your offer on the market.

The business strategy is also called in different ways: marketing strategy, one business model, one mix-marketing or one economic model.

Answer the following questions

  • How will you publicize your company, what promotion (advertising) will be done to publicize your product?
  • What will be the prices of your products or services?
  • What will be your suppliers?
  • By whom will your product be manufactured, by whom will your offer, your service be proposed?
  • What will be your distribution channels, where will your product be sold (internet, professional networks, fairs, shops etc.)?
  • What will be the relationship with your customers, how did you plan to retain them?
  • Where will your products be stored?
  • What will be the development paths of your activity (internet, national, international, etc.)?

Identify Constraints

It's about anticipating what can be holding back your business.

You need to identify, for example, what can drive up your storage costs, production, distribution and communication costs.

Example :

  • Does the fluctuating price of raw materials affect your production?
  • Do suppliers in the sector have a monopoly?
  • Is the demand for your product seasonal?

You can also use a tool for analyzing the environment of your future company called “Pestel analysis”.

Analysis of the environment of your future company by the method called “Pestel analysis”.

Bpifrance Creation

Pour en savoir plus

What is this about?

This part of the market study is essential to the success of your project.

It is also called financial forecast.

It stems from your business strategy that you defined in your market research.

These are documents in the form of numerical tables.

The financial forecast shall consist of 4 parts :

  1. Income statement (over 3 years)
  2. Projected balance sheet
  3. Financing plan (over 3 years)
  4. Cash budget or cash flow plan (over 12 months).

What is the purpose of a financial forecaster?

It's a tracking tool of your financial situation.

The data in these documents must be updates then all the 6 months after creating your company.

It helps you on the following points:

  • Check the profitability or not of your company
  • Know whether your business will generate profits or not
  • Identify your financing needs
  • Apply for funding with banks
  • Negotiate with your suppliers
  • Convince investors.

FYI  

This estimated budget will be included in your business plan folder.

Who does the financial forecasting?

You do not need to be an accountant to start building this document.

It is however recommended to make you accompany.

The following people can help you:

  • Consular Chamber Creation Advisors: CCI: titleContent and CMA: titleContent
  • Project coaches of community networks: Réseau Entreprendre, Réseau BGE for example
  • Accountant or chartered accountant.

What are the steps to follow?

Step 1: the income statement

It's a table where you enter your expenses (expenditure) and your products (receipts).

After this calculation, you will be able to evaluate your result.

If your products are higher than your expenses, your result is a benefit, otherwise it's a loss.

You must encrypt your charges.

The operating expenses are all that is needed to run your company:

  • Purchase of goods and raw materials
  • Storage Fees
  • General expenses: rent, insurance, maintenance, etc.
  • Taxes: CET, property tax, continuing vocational training, apprenticeship tax, etc.
  • Routine management costs: supplies, small equipment, fuel
  • Staff remuneration: salaries, social security contributions
  • Life of the invested equipment, i.e. the loss of value of an asset invested and dedicated to the activity, due to wear and tear or obsolescence.

Please note

You will meet the term depreciation and amortization charges. Depreciation is the loss of value of a fixed asset of the company due to the wear and tear of time or obsolescence. They are also called fixed assets.

The financial charges are loan repayments.

The exceptional loads are those that do not fit into day-to-day management or normal operation. They have no impact on operating income (e.g. sale of equipment dedicated to the activity).

Please note

You will meet the term assets sold or disposal of assets. For example, it is an obsolete asset or production tool that is separated in order (very often) to generate cash.

You must encrypt your operating products, your turnover (turnover): this is everything you sell and everything that makes you money from your business.

You register the turnover derived from each of the following:

  • Sale of purchased products (for resale)
  • Sale of products made by your company
  • Sale of the realization of a service
  • Operating subsidy paid by the state or local authorities: a subsidy that helps, for example, to pay your costs for manufacturing and production, or to compensate for the lack of turnover (turnover)
  • Other income: financial (e.g. participation in other companies), exceptional (e.g. investment grant to help pay for the purchase of equipment).

For concrete examples income statement, it is possible to consult the contents of CCI Builder:

The income statement: detailed explanations

CCI Builder

Pour en savoir plus

Step 2: the forecast balance sheet

It's a table which summarizes and quantifies what the company possesses: its heritage.

The assets of a company are made up of assets and liabilities.

  • The asset : it is the goods and rights that will be used for the functioning of the company. Examples: buildings, land, equipment, machinery, furniture, stocks.
  • The liability: it is the financial means that make it possible to pay for your assets. It's about debt and capital. Examples: your bank loans, contributions in kind (car, computer, etc.) or money, contributions from your associates to the creation of the company or by capital increase.
Step 3: the financing plan

Ec 3e The table consists of 2 elements:

  • Your needs (BFR: titleContent, fixed assets, loan repayments)
  • Your resources (CAF: titleContent, capital contributions, current accounts, loan subscriptions)

It allows you to see if your project is viable.

If your resources exceed your needs, you can build up available cash. Otherwise your company will have cash flow difficulties and therefore the business will be threatened.

You must complete the forecast on the 3 years to come.

Two important resources must be included:

  • The working capital requirements (WCR) : these are inventory costs, receivables, payment of your supplier debts. To calculate them, you need to evaluate the following 3 points:
    • Inventory Turnaround Time
    • Customer payment (your receivables)
    • Settlement time of your suppliers.
  • The cash flow (CFF) : this is your profit (= your income minus your expenses) + depreciation (= the sum of the impairment losses of your fixed assets).

FYI  

The banks use this forward financing plan to study your loan application and calculate your loan.

For concrete examples In the forecast balance sheet, it is possible to consult the contents of CCI Builder:

The financing plan: detailed explanations

CCI Builder

Pour en savoir plus

Step 4: the budget or cash flow plan

Ec 4e summary table month by month your re-entry and your cash outflows.

These are transactions in the company's bank account.

It's also called a monthly statement of cash.

Cash receipts are called cash receipts.

Outflows are disbursements.

You must know the different payment terms to record the amounts in the appropriate month.

Warning  

Certain payments of tax (VAT, social charges, business taxes, etc.) are paid by installments with balances Annual. You must know the date of payment of the deposit and the balance.

For a concrete example As part of the planned cash flow plan, it is possible to consult the content of the French Banking Federation:

How to make an annual forecast cash flow statement?

French Banking Federation

Pour en savoir plus

Who can help me?

Find who can answer your questions in your region