Market Research Tips for Small Business Owners

Along with any successful strategic planning session comes the issue of market research. Especially for small business owners, this research may be daunting when you don't really know how to go about such a thing. Even though we live in a world virtually drowning in information, finding exactly the kind of information you need for your business can be difficult on a good day. Here are some tips on finding the information you need with the minimum amount of hassle.

When it comes to market (or competitive) research, there are many good resources available on the Internet. This is especially good news if you prefer conducting your research from the comfort of your own home. Too often for the inundated business owner, the very thought of " research" is enough to bring back haunting memories of your college days of running back and forth in the campus library, searching in vain for the single journal we need. The computer has largely reduced the need for this kind of effort.

Unfortunately, in most cases the information won't be free. The most complete sources of information in cyberspace at the moment are only available via a subscription. You may think that free "teaser" abstract you're reading provides all the information you need, but the real meat of the source is most assuredly tucked away inside the subscriber's library. Some of the most popular Internet resources are Lexis/Nexis, S&P's Industry Surveys, and the Dow Jones Interactive.
Subscription rates can go up into the thousands for a year's worth of access, although you can often get a cheaper rate for single usage. A single report on a company may cost between $10 and $50, while a more comprehensive report could go well over $100. For industry reports, keep going up the price ladder. Depending on your situation it may be a good trade for the information you seek, but if you plan to get background information on several competitors at once the price may become astronomical.

If you decide you simply can't afford the cost of these online databases, you can still ask your local college's library for some assistance. Some libraries will offer a limited amount of usage of their subscriptions through a community membership arrangement (it helps if you're an alum of the university.) If they have a list of your market sector and competitors, one of your employees could be coerced into paying the library a visit and gather the information you need in one day. (If you have no employees, happy database hunting.)

An often-overlooked tactic of information gathering is browsing your competitor's own web page. Most major companies have established their own Internet presence; Google is a good source to look them up. If you can't find the name through normal methods, try guessing the address using a .com, .net or .org suffix. Even the most sparsely-decorated website will contain information about the company's location, background, features and new products. Of course, most company websites will also have a lot more to offer, such as sales revenue, office or plant locations with the services offered there, product specifications, and so forth.).

You need to view these pages objectively, since the target audience of this website is your competitor's prospective customers, so they'll obviously only put information on the site that promotes them in a positive light. Claims regarding the superiority of their products or customer service should be taken with a grain of salt.