Business Basics > Research

Researching Your Business Concept

Before you start your business, it is important to know what you're getting into. Doing your research can test the feasibility of your concept and lead you to make informed decisions about everything from your product line to what type of insurance to carry.

Research can be the difference between success and failure for many small business owners. Obtaining data on your industry, potential market, and operating needs is also a requirement for developing a solid business plan.

Read through this outline to find out what types of information to research, and where to find it.

I. What to research

A. Market Demographics - The more you can identify about your prospective customer, the better you will know your business.

1. Age or Ages of Customers
2. Ethnic group
3. Occupation
4. Income level
5. Size/Geographic Region
6. Interests
7. What products and services does the market need?
8. Is the concept something they will use?

B. Industry Demographics

1. Average size of each individual business
2. Size of the industry as a whole
3. Average sales and sources of these sales
4. Average number of employees per firm
5. Average payroll per firm
6. Foreign trade statistics if international company
7. Number of women/minority groups in the industry

C. Medium of business

1. Mail order
2. Brick and Mortar
3. E-business
4. Telemarketing
5. Combination - For example: a brick and mortar store that has a website from which customers can order

D. Competition

1. Who - direct and indirect competition
2. Strengths
3. Weaknesses

E. Types of insurance the business will need

F. Federal, state, and local government restrictions

G. Legal Structure/Organization of the Business

1. Proprietorship
2. Partnership
3. Corporation
4. Limited Liability Company

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II. Where to research

A. Internet

1. Most popular search engines

Yahoo!
Dogpile
Metacrawler
Excite
HotBot

2. How to use search engines

a. Use quotes to search for a specific phrase
b. Use a plus sign for required words
c. Use a minus sign to exclude words
d. A [t] means the word must appear in the title
e. A [u] means the word must appear in the URL
f. These work on most search engines, but not all
g. Use multiple search engines because they produce different results
h. Most search engines have advanced search options to narrow your search

3. Websites

a. Iowa Department of Economic Development

1. Gives economic statistics for industries in Iowa, provides information about small business development, international trade and exporting, entrepreneurial assistance such as licensing requirements and financial assistance, workforce training, and information on communities and rural development.
2. Iowa Economy - News and Trends

b. U.S. Census Bureau

1. Economic census reports on industry demographics
2. Population census data available

c. U. S. Small Business Advisor
Provides access to information on government services and regulations affecting small businesses

d. Iowa Business Network

1. Offers information on starting a business
2. Contains a search feature to allow you access information about a certain aspect of business

e. Iowa Profiles
This site provides Census data and community development information on employment, income, economics, demographics, retailing, commerce, etc. for the State of Iowa and its counties and communities. This site is an outreach presentation of the Iowa State Department of Economics.

f. Iowa Department of Revenue and Finance
This site provides information on business taxes and sales taxes.

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B. Other Agencies

1. U.S. Small Business Administration
a. Assists and counsels small businesses
b. 215 4th Ave SE Cedar Rapids

2. SCORE - Counselors To America's Small Business
a. Provides free counseling
b. UNI Regional Business Center, 212 E. Fourth Street, Waterloo

C. Helpful books

1. Cedar Falls Public Library
a. Handbook of Key Economic Indicators by R. Mark Rogers - economic statistics
b. How to Test Your Million Dollar Idea by Howard J. Klein - success in business
c. So You've Got a Great Idea by Steve Fiffer - new business enterprises
d. That's a Great Idea! by Tony Husch and Linda Foust - evaluating, developing, and marketing new ideas

2. Waterloo Public Library
a. The Small Business Start-Up Guide by Robert Sullivan - starting and running a small business
b. Iowa Business Directory - business enterprises in Iowa

3. UNI Rod Library
a. Demographics of the U.S.: Trends and Projections by Cheryl Russell - demographic surveys and forecasting information
b. Start, Run and Grow a Successful Small Business by Susan M. Jacksack - small business management

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