What Do You Research?
2. Consumer trends
Consumers drive the market, and their needs are constantly changing.
For example, take two traditional industries, vacuums and sewing machines.
We still need clean houses and our clothes need sewing, so the need for these products has not changed. What has changed are consumers’ priorities.
Working moms spend less time cleaning, or they hire someone. Products have changed to reflect society’s new needs, such as home cleaning equipment that eliminates allergens. Many vacuum dealers have diversified into home air filtration systems due to the significant increase in allergies and worsening air quality.
Where moms used to sew their families’ clothes, we have now become throwaway society. My ninety-five-year-old mom still darns, knits, and sews. I either throw the holey socks or ripped clothing away or take the clothes to her to fix. There’s no time for sewing now, yet in my past life, I sewed and knitted.
Children are rarely taught the art of sewing now as moms are too busy, yet future trends will gear toward catering to the baby boomers who will have both the time and more disposable income.
Health and fitness has become a huge current and no doubt future trend.
Companies are catering to the fact that obesity and lack of fitness in both adults and children has become a global concern. Even McDonald’s has intro- duced a line of healthy alternatives, realizing that a large portion of their market is families concerned about their weight and diet. Fitness centers and personal trainers are now integral to many people’s lives. These global trends are also an important part of your research.
Current and future trends Listed here are many trends that will impact the future. Can your business accommodate, cater to, or withstand these trends?
• The huge increase in baby boomers with more disposable income
• Baby boomers who are caring for their aged parents
• Lack of facilities and long-term care for aging seniors
• The environment—chemicals, global warming, pollution, conservation, recycling, endangered species
• The large swing toward self-employment and home-based businesses
• Lack of time to perform basic chores, such as shopping and house cleaning
• Healthier diets—natural foods, less fat, vegetarian meals
• Exercise and fitness
• Housing—multiunit dwellings, downsizing of homes, and numbers of children
• Technology—communications, Internet, computer reliance
• Increased desire and necessity for knowledge and education
• Immigration—changing populations
• Youth—fewer job opportunities
• The huge influence of the media
• The need to be entertained
• Less income as job markets change
• Downsizing of businesses
• The Internet—bringing the world into the average home
• Vitamins, alternative medicines, therapies, and remedies
• International economies—their changing structure and currency values
• Cocooning—September 11 created a universal awareness of home and family
• The increased popularity of home improvements and decorating
• The younger generation’s need for everything—now
3. The local market
The majority of small businesses are service businesses that serve their local community. Thorough local research is important, as there can be a lot of hidden competition, namely the many unlicensed home-based businesses that do not openly promote their services yet are still taking a nibble at your slice of the pie. Your city or county office will have some very helpful infor- mation, as will chambers of commerce. The city or county office can usu- ally give you a list of the licensed businesses in your field, and from this you can deduce which ones are housed in commercial premises and which ones are home-based.
Chambers of commerce Well acquainted with their business sector, your local chamber of commerce is a valuable research source. They are in business to help the businesses in their community and can help you with a variety of pertinent information that will shorten your research process.
Although each chamber may slightly differ in services offered, most should offer similar to the following:
• Referrals to reputable realtors for leasing commercial space
• Referrals to reputable goods and services businesses
• Printed information on the demographics of the town and its residents
• Information on local regulations
• Discount packages of coupons for business services
• Business start-up pamphlets and books
• Business library
• Online membership directory
• Membership business directory for review
Local government offices Your local government office is also a mine of research information and will supply you with the following resources:
• Zoning regulations for businesses
• Signage regulations
• Home-based business regulation information
• Business license directory
• Environmental laws and policies
• Local demographics—population, age, male/female ratio, marital status, household sizes, labor force by industry, languages spoken, schooling, businesses in your area
• Applicable local regulations and applications for new commercial building permits
• Other licenses you may require
Alert !
Be a Super Sleuth: Peruse the businesses for sale classifieds and call ones simi- lar to yours. Try to find out why they are selling, whether their business is suc- cessful, and how long they have been in business. If you can find an old Yellow Pages (check with your local public library), call businesses in your field and see if they are still operating. You will be surprised how many were listed two years ago that are not listed now. Talk to ones who are still in business or visit their premises to “snoop out” the reason for their success.
Researching your community Take a community tour to gather the following information:
• The number of competitors successfully trading in your area
• The accessibility of your potential location
• Where people prefer to shop
• The quiet shopping areas and what type of stores trade there
• How your competitors advertise in the local paper
• What competition is listed in the local Yellow Pages
• Leasing costs of suitable vacant buildings with parking accessibility