There is so much information available now about starting a business that there is no excuse not to be well informed. Here are some resources to help you.
1. United States Small Business Administration
The Small Business Administration offices found across the country are won- derful gold mines packed with gems of essential information for both new and growing entrepreneurs. Partnering with SBA lenders, SCORE Counselors, the Small Business Development Center, and women’s business centers, there is not much you won’t find there in the way of resources to help you.
CASE STUDY: The Ten-Question Eye-Opener
For three years I have taught Entrepreneurship Skills in the Equine Industry, an accredited fifteen-week course at a university college. The class usually consists mainly of young women who are crazy about horses and who dream of owning a horse-related business. Part of their business plan entails doing a market survey, similar to Figure 4.5, interviewing ten people. The results have been amazing. Many students have commented that talking to people gave them new ideas, confirmed and increased their enthusiasm, or made them realize that they needed a lot more homework on their idea.
Some changed their business direction after doing the survey, realizing the impracticality of their original plan. Others realized that they wouldn’t make a sufficient living. In all cases, the survey was a tremendous help in formu- lating their plans and in identifying areas needing reevaluation.
Information is provided about all government services, programs, and local, state, and federal regulations. Information on most pertinent small business topics are available online, including business plans, marketing, financing, payroll, licenses, permits, business law, taxes, self-employment taxes, and employer identification numbers. This information can be down- loaded from their website. Visit your local office, browse their library, or talk to a business officer. Their website address is www.sba.gov.
2. Small Business Development Centers
With over a thousand locations in the United States, small business devel- opment centers are focused on their local community’s economic develop- ment. Services include access to all business startup resources, tourism, local regulations, demographics and statistics, a variety of small business and special events information, including local, state, and federal loans programs.
Many offer technical and international trade assistance. Find the office nearest you at www.sba.gov/sbdc/sbdcnear.html.
3. Fedstats
If you need demographic, trade, social, international, educational, or eco- nomic statistics, www.fedstats.gov is the site to visit. They provide informa- tion by sector, state, regionally, or nationally. Informative statistical online publications and links to all other federal agencies with statistical informa- tion make this site a one-stop stats shop. There are even specially prepared statistics available for schoolchildren of all ages to use.
4. Yellow Pages
What an information mine! You can research your competitors either online or in print by studying their advertisements and see how they advertise and what services they offer. Assess how many competitors are in your trading area and get some indication of their size.
5. Chambers of commerce
Your local chamber of commerce is in business to help businesses, both new and established. If you are serious about starting a business, join your local chamber so that you have better access to all their resources and informa- tion. Many supply business start-up kits, resource guides, business plan and cash flow information, and some even offer one-on-one consulting services.
Get Involved:
As a member of a chamber of com- merce, you’ll have access to mailing lists, networking opportunities, seminars, a host of special discounts, and member-to-member benefits, monthly newsletters, and special events.6. Local government offices
Visit your local office for community statistics, traffic counts, potential rezoning plans, new building applications, codes, regulations, and other busi- ness information.
7. The Internet
When doing research, nothing beats sitting in the comfort of your own home collecting information. There is virtually nothing you can’t find on the Internet. It is a powerful, fast, cheap, and efficient research tool—in fact, for research, it is indispensable. Many informative small business websites can be found in the appendix.
8. Trade shows and seminars
Trade shows allow you to be inundated with the most up-to-date informa- tion on your industry, helping you make informed decisions. There are also entrepreneurial trade shows that demonstrate new products and franchises.
This is an opportunity to assess new competitors in the market and also promising new businesses.
Network and Grow:
Attend as many business- related seminars as possible. Not only will you learn new skills, you can network with other entrepreneurs and do business with them. Nothing beats a face-to-face meeting to start building relationships.9. Publications
Use Internet listservs, newspapers, flyers, magazines, directories, and trade and financial papers to glean every ounce of information you need.
Subscribe to journals and newspapers specifically aimed at your type of business or borrow them from your local library.
What Is the Next Step?
Once you have confirmed your niche in the market and feel confident that you have a viable business idea, you may need the services of a lawyer for signing a lease, a partnership agreement, or an employee contract or for pur- chasing a business. Few of us understand legalese or all that fine print. Some unfortunate people don’t use a lawyer and get burned. So next we’ll take a look at why you need legal agreements and what a lawyer can do for you.
Figure 4.6: MARKET RESEARCH RESOURCE CHECKLIST Use this checklist to ensure that you leave no stone unturned in gathering your market research information.
Resource Researched
U.S. Small Business Administration □
Local Small Business Development Center □
Fedstats □
Yellow Pages □
Chamber of commerce □
Local government office □
The Internet □
Industry trade shows □
Seminars or conferences □
Industry newspapers and magazines □
Local and national newspapers □
Useful telephone numbers and websites:
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