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.

Arm Yourself with Knowledge

The internet has provided access to entrepreneurial experts from across the globe. Information on opening, expanding or harvesting your business is readily available. However, entrepreneurs need to be willing to take the time to access the information and learn from what is available.

This may seem like an easy task, yet many business owners do not take advantage of the information available to help their businesses survive, thrive and grow. Knowledge is a competitive advantage, and the business owner who learns about the market place, how to capture that market place and maintain market share will win.

Market research and competitive intelligence is an ongoing research task for any business. The information is critical in maintaining an edge in the market, especially in this time of more aggressive business and global competition. Market research is an ongoing task, because markets are changing very rapidly and the pace of business has increased dramatically in the past few years. The danger for many entrepreneurs comes from feeling overwhelmed and overloaded by the amount of information one can obtain.

To help the entrepreneur with their market research, there are a few key questions to ask. Before you start, ask what decision will be made and how the information will be used. When engaging in internet research, give yourself a time limit for searching the internet. There may be times where you waste more time than you gain by searching for answers on the internet.

Once you begin to engage in research, look at the source being viewed. Who wrote the article, what is their authority or affiliation? How accurate or relevant is the information, what is the intent of the information and how reliable is the information?

While engaging in market research, 50% of the information should be sought from people. Interview or call your competition’s suppliers, any associations for your industry, merchant associations, customers or local reporters. Get a feel for what is happening in your industry, what changes are taking place and what are some of the needs in the industry. Be persistent in contacting and talking with industry informants.

The next 50% of the research can be done on the internet or the library. Begin by using a variety of search engines for the same topic. Some search engines to try are www.google.com, www.yahoo.com, www.ask.com, www.search.msn.com, www.clusty.com and www.vivisimo.com. You can search blogs, local clubs, chambers of commerce, economic development organizations and more. Additionally, a lot of information can be found on GIS Maps. Fort Smith has an excellent GIS department, and they can be found at www.gis.fsark.com. Lastly, if you are in search of regulatory information, you can go to www.Thomas.loc.gov, www.usa.gov or http://asbdc.ualr.edu/.

Other search options include: your competitor’s website, news sites, sites your competitors link to, blogs, patent applications, podcasts, Wikipedia or advanced search engine requests. While the amount of information is overwhelming, entrepreneurs need to equip themselves with information that will help the business win customers. In this information age, anyone can access the information they need for business. The challenge is being disciplined enough to seek out the information that is needed.