Business Research

Researching Company Success

Just as cash flow is the lifeblood of a business, no business is going to go far or succeed at any great length without research. Research can be frustrating, time consuming and a bit mysterious if the entrepreneur does not take steps to prepare themselves to do the research they need.

The first step is to identify what needs to be researched. Do you need information on competitors, customers, industries, the economy, regions, marketing or advertising strategies, intellectual property or demographic data? Before getting started, write down the questions that you are trying to answer with your research.

The next step should be to identify people you can call first to get to the information you are seeking. This is considered primary information. Talking with customers or potential customers is critical in obtaining their feedback on your product or service and should be your first approach. Customers can give more than just mere feedback on what your company is offering. Customers can also give you key information on the industry, why they buy from you over the competition, what prices they are willing to pay, what you can improve, and keep your company on its “toes” by helping you stay competitive.

Beyond customers, call vendors, Chambers of Commerce, other industry leaders or people in your network for information or ideas for your company. If the first person you call does not have the answer to your question, then ask them for a referral to someone they know who could answer your question. Typically, it will take up to five phone calls to find the person with the information. If you find yourself afraid to call others for insight, ask yourself when will you be comfortable doing this?

After you have exhausted your time on the phone, seek out information from the internet. Limit the amount of time you spend on the internet. As great as the internet is, it is an open invitation to procrastination or a black hole of time gone by without finding your answers. When looking at internet sources, seek out information on the author of your source, who they work for, what are their credentials, etc. You want to seek credible information, not information that you think will support your idea.

After you have taken the time to gather information both data driven and anecdotal, you need to review the information with an open mind. Taking industry information and team it up with economic data and customer feedback and see how it applies to your company. Where do you stand; what is the message that the information is painting for you; and what improvements do you see that need to be addressed?

The idea of research is to make sure that your idea, product and/or company are a worthwhile endeavor. This decreases the risk factor you face with your business by giving you solid information on who your customers are, which vendors are best to work with, where to sell your product and so forth.

Market research is not a one-time event. Companies need to engage in this activity regularly, since the business world is constantly evolving and changing at increasing rates. Company leaders, Presidents, CEO, and managers should engage in consistent reading and information seeking. The traditional “executive suite” is an invitation to being left behind. Get out, get engaged, and get the knowledge you need to lead your organization forward.