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Research for Less You don't need a big budget to find out if there's a market for your business.

By Kimberly Stanséll

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Q: I want to start a hobby shop inan area around Boston where there are currently no hobby shops.I've been conducting my own market research by asking localpeople about my idea, and I've gotten a huge positive response.I think there's a large market for this store, but I'm notsure how to begin the process. Any advice?

A: Your hunch about the need for alocal shop may be right on. However, your research effortsshouldn't end here. There's more data you can uncover tosupport your expectations about a business's success as well asto uncover any potholes in your thinking.

You should cover the bases more thoroughly by examining avariety of information sources. Once you've squeezed out moredetails from both conventional and unconventional sources, then youcan confidently move ahead. Here are more strategies toconsider:

  • Contact the appropriate industry or trade association.Inquire about research reports or survey data available to members.Information gleaned from these resources can help you connect withmore local hobbyists and shop owners, spot trends, and circumventunprofitable or problematic situations. Industry organizationsoften provide a business with a start-up resource package uponrequest-so ask for one.

Start with two groups: the Hobby Industry Association (HIA) and theNational RetailHobby Stores Association (NRHSA). HIA produces a"Nationwide Craft/Hobby Consumer Study" that includesdata on purchasing habits and information sources used byhobbyists. NRHSA's Web site includes a Hobby Resource sectionand a searchable database of its membership. Both organizationshost annual conferences. You'll find more industry groupslisted in the reference book, World Directory of Trade and BusinessAssociations, which you can usually find at your locallibrary.

  • Hire an MBA team. Through the Small Business Instituteprogram, qualified graduate students are assigned projects totackle for local businesses, including market studies. The workteam gives you a detailed report and an oral presentation. Locatedat nearly 250 colleges and universities nationwide, some schoolscollect nominal fees from their clients. Any small-business owneror manager is eligible to participate. For information on a localprogram, call the Small Business Advancement National Center at(501) 450-5300.
  • Call on a business research center. There are sitesnationwide that provide inexpensive research services tobusinesses. These facilities are usually affiliated with anacademic library. For example, the Center for Business Research(516-299-2833) at Long Island University has researched projectsfrom the organic food market to high-tech firms moving to SiliconMesa. The Internet-Plus Directory of Express LibraryServices: Research and Document Delivery for Hire lists 500libraries that provide low-cost research services.
  • Study a set of old and current phone books. A shop maynot exist today but are you sure there's never been one in thearea? Look to see if there's a category heading for your idea,confirm how much competition exists and the movement of otherbusinesses-those who've closed their doors or have grown ormoved to other locations. Old phone books can be found at publiclibraries.
  • Expand your focus group effort. Aim to interview a fewhundred local hobbyists. Where do hobbyists hang out online? Findout what listserv discussion groups are available for yourprospective customers. Subscribe to that list, learn thegroup's posting protocol, and then pose your research question,asking members from the Boston area to reply. Begin your listservsearch at http://tile.net/lists/. Also find out which hobbymagazines sell their subscriber lists. You may be able to purchasea tailored list of names, addresses and phone numbers ofneighborhood folks for you to contact for your survey. Check outentities such as Krause Publications, which is dubbed the world'slargest hobby publisher.
  • Visit your "first stop" business informationcenter. These offices can provide information about licensing,permits, your particular business type and running a business inyour community in general. Check the government listing in yourphone book.

Go through these additional steps, and you'll be on your wayto business success!

Kimberly Stansell is an author, entrepreneur andbusinesswoman in Los Angeles. She has a knack for turning herdesires into reality with little or no money and helps others dothe same in her book Bootstrapper's Success Secrets: 151 Tactics forBuilding Your Business on a Shoestring Budget(CareerPress). For more business-building tips and resources, visit herWeb site, www.kimberlystansell.com.


The opinions expressed in this column arethose of the author, not of Entrepreneur.com. All answers areintended to be general in nature, without regard to specificgeographical areas or circumstances, and should only be relied uponafter consulting an appropriate expert, such as an attorney oraccountant.

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