How
to do Market Research for Your Home-Based Business
Idea
Business experts advise
the prospective home business owner to do adequate
market research to determine if you will have the
customers to support your enterprise. Corporations
and large businesses may spend thousands of dollars
to determine who will be the "ideal customer," for
their new product or service. You may not have the
financial resources like the "big guys," but here
are some simple tips to help you define the best
customers for your business:
COMMUNITY SOURCES:
Start here because the information is easier to
access and where your business will most likely seek
its first customers.
*Visit your
local public library to look for listings of
manufacturers, suppliers, business and telephone
directories (to research any competition); local
government agencies and associations, local
newspapers, and U. S. Census reports which give the
local demographics and details of defined
populations in your areas and around the country.
*Contact your local Chamber of Commerce for a listing of local
businesses and a profile of area residents.
*Local home-based business associations can offer networking and
referral opportunities. For example, if you have a
desktop publishing business, another desktop
publisher in your community or association may refer
potential customers to you for projects that she
does not handle.
*Friends, family members, and other acquaintances in your community
can give you their opinions about your business idea
and ask them questions such as, Do they think such a
business is in needed in your area? What would they
pay for your products or services? What do they like
(or do not like) about your competitors’ products
and/or services?
SUPPLIERS:
Suppliers with whom you have contact often can give you some
insight as to present buying trends.
TRADE ASSOCIATIONS:
Trade associations in your industry often have local
chapters which you can join and gain useful information
about the latest developments in your industry. Attending
and later exhibiting at their trade shows can give you
valuable feedback on your business’ products and/or
services.
MEDIA SOURCES:
Local cable and national television channels and home
business and trade publications can provide the latest
trends and buying patterns of potential customers to help
you determine your "niche" (or best) customer market(s).
INTERNET SOURCES:
Internet sources and sites can help you gather statistics,
network with others in your field, and reach potential
customers from either your own site or being listed on a
group’s site.
TEST MARKETING:
Do your own "test marketing." Start your home business (or
businesses) on a part-time basis and get customer feedback
through questionnaires or follow-up telephone calls about
your products/and or services, your prices, your handling of
customer complaints, and most importantly if they would use
your services or products again. Test marketing may also
help you discover untapped markets, and possibly lead you to
go into a dramatic redirection of your business with the
result of larger profits.
BOOKS:
Books on future consumer and business trends like Clicking
by Faith Popcorn, Future in Sight by Barry Howard Mink, or
Trends 2000 by Gerald Celente which can give you some
insight for your business’ direction.
If you concluded from your research that your business idea
will not have the customer base to support itself, do not
despair. Do similar research in nearby communities on your
business con-cept which may offer a completely different
market—and customers that will be receptive for your new
venture. It may take considerable time, plus trial and error
to identify your target customers. The better you know your
market, the better you can focus your energies on the
products and services that will gain you customers and the
development of a successful business.
Priscilla Y. Huff writes on the topic of home and
small business issues, specializing in women’s
entrepreneurship, and has conducted her business, LITTLE
HOUSE Writing & Publishing from her home for the past ten
years. She is author of the best-selling book, 101 Best
Home-Based Businesses for Women, and the just-released book,
More 101 Best Home-Based Businesses for Women, Prima
Publishing.
