How do you turn an idea for a business into a successful venture?

For New York City-based entrepreneurs LeAnn Darland and Tara Hankinson, it took a disciplined, research-driven approach to find opportunity in a crowded market.

With the US beer market projected to reach nearly $150 billion by 2032, Darland and Hankinson co-founded Talea Beer Co., a craft beer company that found its niche in a market dominated by industry giants like Anheuser-Busch (BUD), Constellation Brands (STZ), and Boston Beer Company (SAM).

It all started with a hypothesis that the experience and culture of beer — its pubs, packaging, and taste — were all focused on men and that “women were not being attended to by craft beer.”

The duo conducted market research to prove their hypothesis and found a significant gap in the craft beer market. Darland and Hankinson's research showed that despite women making up 30% of craft beer drinkers, many felt sidelined by brands that catered predominantly to male consumers.

That was when the concept behind Talea was born.

"We wanted to create a beer company that spoke to a broader audience beyond the typical 'beer bro,'" Darland said.

Darland and Hankinson didn’t just slap a different label on a beer bottle. They built an entire experience around craft beer for women, with brighter tap rooms, more colorful labeling and packaging, and more aromatic and fruity flavors.

When they first tested their beer on the market, "9 out of 10 times, we would convert women [into craft beer drinkers]," Darland said. "And it's the best feeling because they haven't been spoken to. No beer companies are trying to expand craft beer to this consumer."

Like Talea, all small businesses start at the "concept stage," the first phase of establishing a company based on a thought or an idea.

Market research is a crucial step in determining a product’s viability. By conducting market research, you can answer questions about location, pricing, market size, and, most importantly, market demand and saturation.

Market research should be done “before you put your first dollar and your first brow of sweat into [the business],” said Steve Zagor, a professor at Columbia School of Business and food business consultant.

There are over 33 million small businesses in the United States, accounting for a whopping 99.9% of all US companies and 43% of US GDP, according to the US Chamber of Commerce. Yet 42% of small businesses fail due to a lack of market demand.