If you have the capital, consider hiring a market research firm to do an analysis of community trends and potential business opportunities. However, for most small businesses, money most certainly is an issue and the task of doing market research falls on the shoulders of the entrepreneur. Many find this to be a daunting task, but let’s explore this issue step by step to offer some clarity.
Step 1
Start reading. Look to the mainstream press. Read your local newspaper, The Wall Street Journal, Fortune, and Forbes or Business Week. Read as many business periodicals as you can get your hands on, or as many as you have access to. As you read, look for emerging trends, both business and cultural trends. What types of trends should you be looking for?
Wage earners and standard of living. For example, in many couples both husband and wife are wage earners that bring home money the household needs to keep running. Many times couples lack the time or energy to invest in the daily household chores, or to invest in the chores that in bygone eras were taken care of by the stay-at-home wife. Many housecleaning businesses are springing up to fill that need. Other businesses that are springing up to fill the void are childcare providers, delivery services for groceries or other items, interior decorating companies, and even dog walking services.
Layoffs are common these days. This means that, with a shortage of people available to do the operational work of the company, many businesses are looking to contract to service providers to perform tasks that were previously controlled in the main business. This is called outsourcing. Many businesses outsource copy writing services, public relations and marketing services, even accounting departments and human resources departments are being outsourced.
Computer technology is essential in the business environment today. Many businesses lack the expertise within their ranks to take advantage of all the vital emerging technologies available. To fill this need, web site developers, desktop publishers, and independent contractors who are licensed to maneuver in the Windows environment are springing up to fill the gap.
Step 2
Talk to friends, relatives, business associates, others in your network, and even mentors. Talk about ideas that they have, or market needs that they see that aren’t being met currently. Don’t forget that you are a resource, too. You are a consumer and with your own powers of observation, what needs do you see that aren’t being met?
Step 3
Consider, instead of re-inventing the wheel, the lure of “building a better mousetrap.” Think about how you could potentially improve a product or service that is currently being provided by another company. Be aware of the stumbling blocks, though. Don’t be over confident about your ability to improve an existing product or service, and also remember that just because you can improve upon something is no guarantee of business success. Make sure that you can not only improve a product or service, but that the demand for improvement exists.
Step 4
Instead of building a better mousetrap, if that seems undesirable to you, consider looking for ways to tweak existing methods of product or service delivery to make your own method unique and different. One approach is to look for a niche market in a given field. For example, if you have experience doing accounting and with the film industry, you could offer accounting services to businesses in the film industry specifically. To develop a niche, look for market anomalies – unmet needs that are ripe for the filling. The need should be widespread and growing.
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