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Small Business Idea: Do Your Research!

Researching your small business idea

There are three primary ways to research your small business idea. You can use research conducted by others, talk to potential customers and you can also investigate your competitors. The importance of researching your small business idea cannot be underestimated. Do the research, and you’ll provide yourself the best opportunity to succeed in your new business.

Small business idea: Using existing research

When you start looking for research related to your small business idea, you may be surprised to find an enormous amount of available resources. Research related to your small business idea can appear in articles in trade and business magazines, and as independent research completed by market research and consulting firms. When you’re looking at research completed by others, you need to look at the report’s credibility and motivation for research. The current research may or may not be favorably consistent with your small business idea. Frequently, there is also the opportunity to purchase prepared research on certain industries, business opportunities, or on specific products. These studies frequently run from $200-$2000, but could actually save you significant time and money. The American Marketing Association (www.ama.org) may be an excellent place for referrals for market research firms. Or, as you probably already know, basic research on search engines on your product, service or small business idea can be an excellent starting point.

Small business idea: Talking to potential customers

It is always a good idea to talk to potential customers about your small business idea. Most people begin their research informally by talking to their family and friends. However, you may not always get a totally neutral and unbiased opinion when speaking to those close to you, as they may not want to hurt your feelings. They may feel pressured to say that they like your idea even if they don’t. You really need honest feedback from real live potential customers. One of the best ways to get it may be to attend a trade show and bring a prototype of your product or service, or you can ask to give a presentation of your small business idea at local trade groups or local business organizations. An absolutely essential aspect of your research should be to check out your competition.

Small business idea: Checking out the competition

There are various ways to check out the competition including looking in the Yellow Pages, on the Internet, as well as looking in trade magazines and associations. Some people check out the competition on a local level by preventing to be a curious customer asking as many questions as possible however, you should not overstepped the appropriate boundaries by requesting confidential information about annual turnover, it not that liabilities the Company holds another such inappropriate topics.

Small business idea: Using census data

The federal state governments conduct money of ongoing demographic research that keeps track of Americans ages, incomes, occupations another important characteristics. Visit the Census Bureau web site www.census.gov To see what kind of information is available. Government data will attend the gate is a lot the larger picture, a frequently does not give you really specific information broken down into a way that is relevant to your specific small business idea. However there is may rich array of demographic information available at this site.

In summary, do your research he will never be sorry. It’s better to spend a little extra time now, then disband a lot more time (and money) later getting yourself out a something you should never have been involved in and the first place.

Information from Barnes & Noble Basics: Starting a Business

Web page and Starting Your Own Small Business Course by Paul Susic MA Licensed Psychologist Ph.D. Candidate CEO/President Susic Psychological Consulting P.C.

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