Market research before you leap

Where to Begin

www.census.gov
Among many other options, go to "American Factfinder" for community and street profiles and to "Data Access Tools" for interactive Internet tools and downloadable research software.

www.commerce.gov
Database of the U.S. Department of Commerce including "E-stats" with data on the electronic economy and "Stat-USA" with economy, business and international trade information produced by the U.S. government (most are no cost).

www.mainesbdc.org
Learn about The Business Information Center, located at the Lewiston/Auburn Career Center, and find links to other informative sites.

depts.husson.edu/library/bookmarks.html
Husson College has useful links to various on-line market research sites.

library.usm.maine.edu
Search "business" at this University of Southern Maine Library site, which has 11 excellent databases of business information.

sbdcnet.utsa.edu
The Small Business Development Center National Information Clearinghouse has a wealth of information.

www.maine.gov/portal/business/corporate.html
Lists and short summaries of active corporations in Maine.

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Based on their experience as frustrated customers, Donna and Steve Palmer knew there was an unmet local demand for high-quality, unusual locally grown perennials — trillium, ornamental rhubarb, corydalis and many more. That personal experience was an important piece of the market research that led them to found Plainview Farm, Inc. in North Yarmouth 15 years ago.

Once in business, the Palmers continued market research with a customer survey to learn who their best customers were and why. Recently, they completed more extensive market research — a combination of a telephone survey and analysis of demographic data — to determine the feasibility of partnering with a York County garden center.

"If you are going to be in business, you must do market research," says John Entwistle, center director for the Maine Small Business Development Centers, hosted at the University of Southern Maine. According to Entwistle, market research is essential to good decision-making, whether the endeavor is a start-up, a growth opportunity or addressing a problem.

The Palmers had an unusual source of help for their research (Entwistle connected them to a team of USM business students who needed a project for their marketing opportunities class), but the techniques were conventional; the students designed and conducted a brief survey for York County garden centers based on criteria defined by Donna Palmer. In additon to original data, they collected secondary data — data already compiled by garden centers and demographic data from U.S. Census reports.

The students, along with their professor, Warren Purdy, and Entwistle, analyzed the data and delivered a report. The report convinced the Palmers that demand existed in York County for their product and told them which garden center matched their partnership criteria. Based on their research, they have decided to formalize a partnership with that garden center.

Obtaining usable information is critical, but collecting it can be costly. Scanning first for secondary data is the most cost-effictive way to begin. You will find excellent research online that offers inexpensive and much simpler domestic and global market data options than ever. Another secondary data source is industry reports, which can be used to anticipate, track and respond to the public's interest in certain markets.

Secondary data is a good place to start your research, but it won't likely provide all of the information you're after. Primary data can be gathered by telephone and online or mail surveys. Also consider face-to-face options, like personal interviews and focus groups.

No matter what the source, Entwistle says that the data must be carefully and honestly interpreted: "Even if you are excited about your original concept, if the data doesn't support it, you've got to re-think your options."

For the self-employed, minimizing risk is critical to maximizing gain. Market research is an essential tool for both.

Katherine Arno is the Director of Training and Communications for the Maine Small Business Development Centers (www.mainesbdc.org) in its Portland center at the University of Southern Maine. Kate owned her own small business in Maine for eight years. Today, aside from working with small business issues at Maine SBDC, she helps her husband with the small business that he has owned in Freeport for 12 years. She can be reached at Karno@maine.edu.

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