Research for Less
You don't need a big budget to find out if there's a market for your business.
By Kimberly Stanséll
| November 13, 2000
URL:
http://www.entrepreneur.com/marketing/marketresearch/article34360.html
Q: I want to start a hobby shop in
an area around Boston where there are currently no hobby shops.
I've been conducting my own market research by asking local
people about my idea, and I've gotten a huge positive response.
I think there's a large market for this store, but I'm not
sure how to begin the process. Any advice?
A: Your hunch about the need for a
local shop may be right on. However, your research efforts
shouldn't end here. There's more data you can uncover to
support your expectations about a business's success as well as
to uncover any potholes in your thinking.
You should cover the bases more thoroughly by examining a
variety of information sources. Once you've squeezed out more
details from both conventional and unconventional sources, then you
can confidently move ahead. Here are more strategies to
consider:
- 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 with
more local hobbyists and shop owners, spot trends, and circumvent
unprofitable or problematic situations. Industry organizations
often provide a business with a start-up resource package upon
request-so ask for one.
Start with two groups: the Hobby Industry Association (HIA) and the
National Retail
Hobby Stores Association (NRHSA). HIA produces a
"Nationwide Craft/Hobby Consumer Study" that includes
data on purchasing habits and information sources used by
hobbyists. NRHSA's Web site includes a Hobby Resource section
and a searchable database of its membership. Both organizations
host annual conferences. You'll find more industry groups
listed in the reference book, World Directory of Trade and Business
Associations, which you can usually find at your local
library.
- Hire an MBA team. Through the Small Business Institute
program, qualified graduate students are assigned projects to
tackle for local businesses, including market studies. The work
team gives you a detailed report and an oral presentation. Located
at nearly 250 colleges and universities nationwide, some schools
collect nominal fees from their clients. Any small-business owner
or manager is eligible to participate. For information on a local
program, call the Small Business Advancement National Center at
(501) 450-5300.
- Call on a business research center. There are sites
nationwide that provide inexpensive research services to
businesses. These facilities are usually affiliated with an
academic library. For example, the Center for Business Research
(516-299-2833) at Long Island University has researched projects
from the organic food market to high-tech firms moving to Silicon
Mesa. The Internet-Plus Directory of Express Library
Services: Research and Document Delivery for Hire lists 500
libraries that provide low-cost research services.
- Study a set of old and current phone books. A shop may
not exist today but are you sure there's never been one in the
area? Look to see if there's a category heading for your idea,
confirm how much competition exists and the movement of other
businesses-those who've closed their doors or have grown or
moved to other locations. Old phone books can be found at public
libraries.
- Expand your focus group effort. Aim to interview a few
hundred local hobbyists. Where do hobbyists hang out online? Find
out what listserv discussion groups are available for your
prospective customers. Subscribe to that list, learn the
group's posting protocol, and then pose your research question,
asking members from the Boston area to reply. Begin your listserv
search at http://tile.net/lists/. Also find out which hobby
magazines sell their subscriber lists. You may be able to purchase
a tailored list of names, addresses and phone numbers of
neighborhood folks for you to contact for your survey. Check out
entities such as Krause Publications, which is dubbed the world's
largest hobby publisher.
- Visit your "first stop" business information
center. These offices can provide information about licensing,
permits, your particular business type and running a business in
your community in general. Check the government listing in your
phone book.
Go through these additional steps, and you'll be on your way
to business success!
Kimberly Stansell is an author, entrepreneur and
businesswoman in Los Angeles. She has a knack for turning her
desires into reality with little or no money and helps others do
the same in her book Bootstrapper's Success Secrets: 151 Tactics for
Building Your Business on a Shoestring Budget(Career
Press). For more business-building tips and resources, visit her
Web site, www.kimberlystansell.com.
The opinions expressed in this column are
those of the author, not of Entrepreneur.com. All answers are
intended to be general in nature, without regard to specific
geographical areas or circumstances, and should only be relied upon
after consulting an appropriate expert, such as an attorney or
accountant.
Copyright ©
2009 Entrepreneur.com, Inc. All rights reserved.
Privacy Policy