Lynne Franks talks about how to research your business ideas.
We're now going to begin researching the reality of what's out there in the world and how this fits in with your own vision. This could take some time if you re still working at a full-time job, but this research needs to be done as thoroughly as possible.
Here are a few initial bits of advice to start you off on your SEED enterprise research assignment:
If you don't already do so, read the business section of your local and national newspaper on a daily basis. Keep your eye out for local and national trends, feature articles on new businesses and entrepreneurs and anything that pertains to your potential area of business.
Develop a relationship with a helpful librarian (at the best local library in your area), and find out where magazines and trade publications that pertain to your prospective business are kept.
Ask a friend who's Internet-savvy to spend an evening with you surfing for the most relevant, information-rich websites. If you're not already an expert surfer, have your friend show you the ropes so you ll be able to navigate on your own next time.
Interview friends, friends of friends and acquaintances anyone who is currently engaged in the line of business you're thinking of going into. Ask them how they got started, what kind of background and experience (and funding) they had when they began, what hardships they've survived and why they love what they do.
You can certainly learn a lot from the entrepreneurial experiences of others. Consider it research as well.
There are many unanticipated outside influences that can affect your enterprise recessions, wars, property prices rising in newly fashionable areas. But there are many unpredictable positive influences, too. It's just a case of being aware and keeping your antennas up.
This is the time to find out how the type of business you want to start is doing in the marketplace.
Research tips
The Internet is definitely the best place to start your research, since it has the potential to yield the greatest amount of information.
Most trade organisations have websites these days, as do trade publications, and every industry has Internet sites you can link into. There are also women entrepreneurs organisations as well as quasi-official small business networks. They are easy to find on the Net and can be of tremendous help.
Chambers of commerce or local trade organisations are often accessible via the Internet, exist in just about every town in the world, and can be very helpful.
Person-to-person research
As you go about researching information, don't forget that one of the best ways to gather information is to talk to people. If you're at a party or a parent-teacher meeting and you happen to strike up a conversation with someone who works in the field you'd like to go into, ask her or him if theirs is a healthy industry and if it's growing. Ask them what their experience has been and what advice they have to give.
Also, find out if there are any conferences being organised for your intended industry and try to attend. Speak to as many people as you can, and do some person-to-person research on the spot, or ask if you can take someone to lunch to find out more about their business.
Researching location
If you're considering opening up a non-virtual business that is, one that has an actual location remember to do your research concerning how viable a particular spot might be for what you have in mind. Whether you're thinking of opening a hairdressers, an organic food store, a florists or a bookstore, you must appreciate that its success hinges on that old retailer's maxim, location, location, location. Foot traffic, parking, the socio-economic makeup of local residents, competing businesses in the area: all of these things must be researched
Factors to remember
Different aspects will influence your choice when selecting a retail property at the beginning of your search, whether it's near your home, has cheap rent, belongs to a friend, or a similar business had already been based there. Whatever the reason, check out the practical aspects of whether it can work for you by visiting the locations constantly, at different times of the day and week, to see for yourself what is happening.
For example, when my former husband opened a men's fashion shop in London in the early 1970s, he selected a very cheap site at the wrong end of a fashionable street. He realised it was near the grounds of a very popular soccer club, but hadn't appreciated that, most Saturday afternoons during the autumn and winter, literally millions of fans would be streaming past his shop windows, making it impossible for shoppers to get near.
He also realised that there was little passing trade at that end of the street apart from soccer fans. The plus side was that the right type of fashion-conscious, yuppie men lived near the area. He was very lucky.
So do ask lots of questions about the background of your proposed site to other retailers in the area, estate agents and anyone you can find that lives around there. This is where the local press and your chamber of commerce may be able to help, too.
Once you've begun to gather business information, start creating files with different headings, such as location, sales and marketing, financing, design, office equipment and conferences. Put clippings from trade magazines and newspapers, and any other relevant material such as notes from your person-to-person research in these files. Ask your friends and family to keep an eye out for articles that have to do with the business you re envisioning you ='ll start accumulating valuable information that way. Also, get yourself on the list to receive newsletters that cater to people in the business you re interested in, and keep these in an accessible place.
Create a filing system on your computer. Keep the information and tips you've found while browsing the Net in your computer files, or you can print out the information and file it.
Research by doing
The best type of research is gained through practical experience. If you are planning to open the same kind of business that you've worked in as an employee, then you ll have less to check out. But if the business you're thinking about represents a completely new career for you, you would definitely benefit from real work experience in the field. For example, if you're considering a catering enterprise, get a job for a few months in the food service business. Learn about commercial kitchens and where and how to buy the best and cheapest supplies.
