Key Questions to Ask in the Research Phase of Your New Business

Welcome to June! You've great this really great idea for a business...but now what?  We are going to spend 4 weeks helping you go from research to branding.  Help you get the word out and finally some tips on setting up shop.  

I have to admit, my favorite part of coming up with a new business idea is putting together a logo, main color scheme, business cards, etc.  It goes back to my Freshman year in high school interior design class and my love for all things design.  But, before you get crazy with the details you need to come up with a solid business concept and make sure you have asked some key questions to get the research ball rolling.  

Does the market want or have a need for what you are offering?

If you are thinking of opening up a cupcake shop or a new organic and earth friendly daycare, will anyone care?  Is it a product or service that people can't live without, or is it novel enough to get their attention?

Is the market already saturated?

Does your city really need another food cart or coffee shop?  Find out how much is spent in the industry each each year and if there is enough room for you to get a piece of that pie.

What is the competition doing?

What do they do well or not so well?  What makes them unique and more importantly, how will you set yourself apart from them?

Are you in the right area or able to reach your target audience?

If you are going to open a new boutique clothing store, are you looking in an area with the right population and disposable income?

Some great questions to ask - now where can you find this information?

Trade Information

Information specific to your industry can be found in print or online trade publications.  Find a trade show associated with the industry and walk the isles to check out competition or potential partners to see how they are doing it. 

The Technical Stuff

Demographic and economic data can be found in the U.S. Census Bureau's American Fact Finder, State Data Centers.  For even more information, a reference librarian can point you to other specialized databases.

Business Groups

Your local chamber of commerce is a great place to start and often times a wealth of information about local businesses and economy.  Or try small business development centers in your area.

Local Universities

My favorite project in journalism school was working with a local entrepreneur who was looking to open a new art studio.  I did all this research for him and put together a comprehensive marketing plan for him to execute.  So, check your local college - a lot of times professors and business schools are interested in having their students work of these projects for course credit.

Your Competition

Visit their websites, physical locations and events they put together.  Maybe even find a business similar to yours in a similar city (so you are not in direct competition) and ask to chat with the owner.

Potential Customers

Maybe put together a small informal focus group to find out if the demand is there.  Talk with friends of friends - but not your close friends or family, it may be hard for them to be completely honest with you.

Cheers!

Kristen