Most startup founders have a good idea of the product or service they want to sell and are convinced that everybody will want one. What they fail to realize is that their point of view is probably biased and without any research to back it up.

Potential investors usually reject business plans that have no industry expert data. A business plan should contain an "opportunity" section that includes industry market size and growth projections. In this section, investors look for footnotes indicating that the information came from credible sources, such as external references and industry experts.

And yet, a lot of startup teams don’t know how to build this key section of their business plan. Where to look? What to look for? Is it possible to obtain this information without spending an arm and a leg? Can you do it without a consultant?

The answer to the last two questions is yes. As for the first two, here are some suggestions:

• Use search engines. You can find census data, research reports, newspapers, and trade association publications online. Look for growth and opportunity tables that you can include in your business plan.

• Pay your local library a visit. Different market research reports can be bought online or offline. You can check them out first at your local library, where many of these can be accessed for free.

• Go to your local economic development office. Nearly every county and municipality has one, and you can get information on popular market segments in your area here. This is also a good place to ask about other resources.

• Check out your local bookstore. Browse the business section while enjoying a cup of coffee. The information here may be more up-to-date than that in your local library, and you can buy the books for later use.

• Purchase online reports. After you’ve exhausted all free resources, order any additional reports or association journals that you might need. Some good websites are Market Research Reports, Gartner Group, and Frost & Sullivan.

• Set up informal focus groups. You can combine your own research with external resources by hosting a small focus group, starting discussions on online forums, and conducting direct mail and telephone surveys.

You’ll want to collect two types of information. Secondary research is the big picture market opportunity data, which includes industry trends, demographics, and census information. Primary research is the data specific to your market and product, and may include information that you gather firsthand.

Seek out information that is relevant so you can build a profile of the industry and your market. For example, if you’re developing a product for vehicle owners, you will want to look for the following: gender, age, geography, market expenditures, spending trends for the past decade, and industry projections.

Having no research to support a business plan can be fatal to any startup funding request. Nonetheless, you don’t need to spend a lot to obtain valid information; there are more affordable options available.