B: ii) Market Research

This will enable you to identify who your customers are (will be), who the competition are, and if there is a potential market for your products/services in the area you have chosen to operate, and very importantly, at what price level!  You may have products/services which are going to compete on price alone, and you have to determine whether that strategy alone would allow you to make a living after all the relevant expenses etc, and what would happen if your competitors reduced their prices.  If they have been established for some time, they may be able to sustain a price war with you for a long period, could you?

If you are providing offering a product which is unique, in short supply, or a service or product based on a higher quality than that currently available; how long will it take for you to establish yourself? 

What will be your strategy if your competitors decide to compete with you on service/quality, or another businessperson decides that the time is right for them to also launch a similar business in the same area?

How vulnerable are you to change in the future?  

What if the bus stop is moved, the road becomes one-way, an out of town shopping centre opens? 
All these factors and many more should be taken into consideration. 
Whilst your decision needs to be based on sound commercial judgement, and the information available at the time, what are the areas that could make you vulnerable?  You need to be commercially aware of the many changes taking place in within businesses in your area, and have the ability to adapt your business accordingly.
If purchasing an existing business, how do you feel when you contact them/ go into the premises etc.  Get some of your friends to do the same, and gather their opinions, and how and where it could be improved.