Researching Your Business Idea

Information is critical to the success of any business. Regardless of whether you're starting up from scratch getting another perspective, research is a vital part of effective management...

What are my competitors doing? What new trends might affect my future sales? Are customer tastes changing? All of these questions need to be answered from time to time.

Usually the information you need is out there, it's just a matter knowing what to look for and where to look.

Here are some of the most accessible and useful information sources around:

Local small business centre

Each State and Territory now has a Small Business Development Corporation or some similar government body in the capital city. In the suburbs and regional towns, you can also find a local Business Enterprise Centre. In addition to providing free advice, most of these organisations also supply information. They often have their own library and carry a large stock of books, videos, pamphlets and referral lists, which can provide a handy starting point in your search.

Books, magazines and trade journals

There's a wealth of published information out there in print. Whether you want to know about lavender farming, party planning, or pizza franchising, someone has already written an article or a book on it. The Australian Government Publishing Service, for example, publishes some 50-odd titles in its "Managing The Small Business" series, and there are many other publishers of small business texts. You'll find that the books are good for detailed information, while magazines can provide concise information on current trends, recent developments in the industry and today's important issues.

Government agencies

Many government departments have useful information that they collect for their own purposes. Departments of trade & industry, the Australian Bureau of Statistics and particular portfolio-specific ministries are all potential sources. Bear in mind that often several government departments can be involved in the same industry, so don't be afraid to ask for referrals to other agencies. Local councils are especially useful in researching population, building and zoning changes in neighbourhood business areas.

Trade bodies

This is where the most specialised information is often found. Many industries now have their own association, which will usually have lists of members, undertake market research, and compile their own "in-house" library. These bodies are often listed under "Organisations ? Business & Professional" in the Yellow Pages. If you don't have any luck there, ring your State Chamber of Commerce and Industry, which will usually be able to point you in the right direction.

Libraries

You can often find plenty of material in various libraries. If you haven't borrowed a book in ages, don't worry. Explain to the librarian what you're looking for and ask them to show you what to do. While your local council library is a good starting point, it may often contain only a few useful items. You may need to expand your search to include other adjoining libraries, or your State reference library. The latter often has a specialised business section, which will contain a lot of highly detailed and industry-specific data.

Computers

A recent addition to the list of useful research tools is the Internet. With the right search engine, you can now go on-line and search worldwide for relevant entries. The danger is that you might find too much information of which only a small amount is relevant to your local area.

People who have worked in the industry

Those who have been "in the game" for a long time often know the shortcuts, the ins and outs and the pitfalls that lay in wait for the beginner. If you already know people from your proposed line of work (either still trading or now retired), talk to them. What were the biggest problems they faced? What demands do customers put on them? What's the competition like? Who's a reliable supplier? All of this is useful information.

Existing businesses

An easy way to find out what's going on is to stop and look around at what competitors are already doing. Where are they located? How busy are they? How do they advertise? What customers walk through the door? What services do they offer? What are their prices? Go and walk around a few, browse through their shops and see for yourself. If there are similar businesses who are too far away to provide competition, ring them up and ask if you can pick their brains ? you may be pleasantly surprised to find that they're flattered by your request!

Of course, this is by no means an exhaustive list. There are many other sources you can also try. By starting off with these sources, you'll often be able to put yourself in touch with other useful contacts that you hadn't even though of. So what are you waiting for? Jot down a list of questions, and get going!