Research is of utmost importance in business, and in particular for the start-up with a new idea.

Market Research

In conducting research, keep in mind the necessary specifics you seek. Prepare an outline of questions you want answered prior to beginning your research. Include questions such as “Who will my customer be?” “Where will I sell my items?” “What do I plan on charging?” and “How much do I think I will sell and in what time frame?” Visit an online business site such as the Small Business Administration (SBA), SCORE, or local business development agencies who already may have a frequently asked questions section to peruse.

Additionally, type in “business startup” or similar phrases in your search engine, and type in the type of business to receive hits for competitors’ sites. Read their information and contact them with questions. You may wish to pose as a potential customer, or if you are comfortable, tell them your intention in hopes of getting honest and helpful information about starting up your business. Perhaps you can ask if they had any difficulties and how they surmounted them. Gather information from industry periodicals, federal or state agencies, and newspaper reports. Try to discover who your customer base will be; it may be a market different from your expectations. For example, for a flower delivery service, you may discover that the majority of people who purchase flowers may be females and not males.

Research can be conducted online, at the public library, or even in person through the Small Business Administration (SBA), SCORE, or local business development agencies that may exist through local or university organizations. Attend a counseling session with an expert and ask them for input and advice. They may offer questions to consider prior to proceeding.

Perform a competitive analysis. Conduct a market study of similar products or services within your potential target market Consider the competition’s entire offering, not just one part of it. For instance, do not just look at the fact that there is a competitive small business accounting service in your county, but consider all that business’ offerings, such as tax preparation.

Ask Others

Ask Those You Know

Excitement and enthusiasm is good, but avoid being too optimistic and ignoring issues. Run your thoughts by others. Again, you can ask business start-up professionals, or people you know who might be interested in your offering. Family, friends, co-workers, neighbors and other associates will offer valuable, and hopefully, honest, information. They may give you some questions you can use in your research. If uncertain about a specific market segment, be sure you include people from that segment in your research. For example, if you wish to confirm that female flower buying customers indeed outweigh males, ask males what their flower buying habits are. Include neutral sources, too. For example, ask young people what they think about buying flower arrangements.

The information gathered of course depends upon the type of business you will promote.

Surveys

Another form of obtaining information is through surveys. Prepare a short survey with your questions, and perhaps containing information gathered from some research already conducted, and using a mailing list or the phone, conduct your survey.

Ask Potential Collaborators

There are companies or individuals who may not be directly competitive but from whom you might receive services, or to whom you could provide collaborative services. For example, if starting a flower business, you may wish to call card stores to get their opinion on your idea. Ask if they would have any interest in supplying your business with greeting cards, gift items and so on, and/or if you could work with them in providing flower deliveries to interested greeting card purchasers.