reports and publications may be necessary and many of them are not free.
4. Gather the data
Identify and contact the most appropriate sources for the information you need. Organize and file your research results as they accumulate. Don’t keep unnecessary data, and do keep an eye on your projected completion date.
5. Analyze the information
Study the collected information as objectively as possible. Weigh your findings against your original idea. Does the data suggest a slight deviation from that plan? Does it affirm or negate your business premise? Cull from the data what is most pertinent to your planned product or service; date it and file it for future reference.
d. Gathering Primary Data
The most effective way to gather your primary data is to arrange personal meetings or a focus group with people who are potential sources of information. A representative from your local Chamber of Commerce, the head of a trade association, an executive from a hotel, the owner of a travel agency, and a corporate executive are a few examples. More than any other information-gathering activity, face-to-face meetings often lead to other important sources for data and will often establish business contacts that could be important to you in the future.
Always telephone well in advance to schedule the meeting. Know the name and proper title of the person you want to see and use it during your conversation. Introduce yourself and briefly indicate what you would like to talk to him or her about.
Prepare yourself for the meeting by reviewing the information you are looking for. Don’t waste time or talk about your plans in too much detail. Write down information as the meeting progresses. Refer to your notes and ask questions to be certain that you get the information you came for.
Bring at least two samples of your gift baskets to show the quality, style, and various price points of your work. Make sure your questions are relevant to the person you are interviewing. Following are some questions for conducting a personal interview with a hotel sales and marketing executive:
(a) Do they now purchase gift baskets for their clients?
(b) How often do they purchase gift baskets?
(c) What type of gift baskets do they purchase?
(d) Are they happy with the quality of the baskets they purchase?
(e) What is the average price of gift baskets purchased?
(f) Do clients in the hotel ask them for referrals of gift basket companies?
(g) Do they have environmental concerns about gift baskets? (i.e., packaging materials or containers left behind for the hotel to dispose of)
(h) What type of products or packaging would appeal to them?
(i) What are their feelings about your gift baskets?
The more questions you ask, the better understanding you will have of your potential customers and exactly what they are looking for. After the meeting, review what you have learned, rewrite your notes, and file them.
e. Gathering Secondary Data
Identify and contact the most appropriate sources for the information you need. There are many sources of market information. They can begin with a telephone book and end with national computer data banks. Following is a partial list:
(a) The library: This should be your first stop when gathering any business information. Librarians are invaluable resources. Look through business and trade publications for trends and sales information. Often you can find market studies on file that can directly fit your needs. You can also locate census information and trade reports.
(b) The Yellow Pages: Your local telephone book can be a major resource. Study the classifications that list your competitors under the headings Gifts, Gift Baskets, Promotional Items, and Gift Packaging. How many competitors are there and do they use display advertising?
(c) Chamber of Commerce: This is an excellent source for all business information. If they cannot help you, they will direct you to someone who can.
(d) College or university business departments: Many of these departments offer extensive research help to the new business-person. Occasionally they will take on the complete market research function for a company and use it as a teaching tool for advanced students.
(e) Government (particularly departments for small business development): In Canada, these departments are the responsibility of each province. The department that handles small business development can provide information on start-up help as well as federal programs that may be helpful. The Business Development Bank of Canada (BDC) conducts seminars on business topics which are very informative to anyone new to business. It also has books and pamphlets. There is a charge for most of these publications. If you do not have a BDC office near you, write to the nearest regional office.
In the United States, the Small Business Administration (SBA) offers publications covering topics such as budgeting, market research, legal structures, marketing, and financing. Call your local office and ask a counselor what is available.
(f) CompuServe Information Service: If you need demographics, this online computer service has it all. If you do not use a computer with a modem, you can use a computer search firm, but keep in mind that these services are not cheap.
f. Your Course of Action
At this point, you will have accumulated a lot of information, both first- and secondhand. What does that information tell you about your new business? Is the data leading you to think creatively about your new venture? If you are able to answer yes to the following ten questions, you are ready to follow a course of action leading to a successful new venture:
(a) Is there a market for your idea?
(b) Can you define who your potential customers are?
(c) Do you know who your competitors are?
(d) Can you see any advantage that your product will have over the competition?
(e) Do you know your competitors’ prices?
(f) Do you know where your customers are?
(g) Are there enough customers to sustain your business?
(h) Do you know how to sell and market your product?
(i) Can you afford the costs of opening the business?
(j) Can you price your product competitively and still make a profit?
Once you can answer yes to all ten questions, the next step is to research a location for your new business and an operation site within that location.
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Location, Location, Location
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