Research for business

start up

BOOT CAMP

Why research?

Before you jump into starting any business it’s vital to have some understanding about what you are offering, who your customer is and be aware of your competitors. Good research leads to more success.

Getting to know your competitors

PRIMARY RESEARCH SECONDARY RESEARCH

• Well researched businesses DO BOTH.

Primary Research

Networking – talk to people What is the average charge?How many similar businesses are in

your catchment area?Who is your customer? Focus groups

Secondary Research

• Data/statistics• Company reports (Companies House)• Business Directory etc • Trade magazines• BUSINESS LINE – free service (based

on the 1st floor in the Wrexham town library)

So you think you know your customers?

• To know your customer you need to be much more specific than you might think?

AGE SEXLIFESTYLELOCATIONB2B (business to business)

Understanding your customer

• If you were going to buy a brand new bed, bicycle, cooker, car in Wrexham where would you go to?

• internet shop (e-bay etc). • Large retail store (Argos, Halfords) • Small independent shop

What are the benefits/disadvantages for you shopping in these three different types of stores?

Setting up a focus group

• Once you have identified your customer, set up a focus group inviting potential customers.

• Be open to criticism – it will help you in the long term.

• Is your price right?• Is your marketing right?• What do they feel about the service?

COMPETITORS

• Competition can be a good thing – it helps YOU focus on your USP (unique selling point) and focus on why customers would come to you.

• Today consumers are faced with a great deal of choice which adds advantages and disadvantages to any business.

Suppliers

• All businesses have suppliers of some sort – e.g. marketing services, print materials, office stationery, equipment. Many companies work B2B so offer trade accounts/discounts etc.

• You will certainly require suppliers if selling goods directly – who do you go to?