I recently answered a question on LinkedIn requesting cost effective market research tips for small businesses. I am posting my response here, as I thought it would of interest to Toronto Marketing Blog readers:

ANSWER

Cost Effective Market Research Tips for Small Businesses:

• Before you do anything, identify your market research objectives. What is your basic business planning premise and what do you need to learn to ascertain whether it is right, wrong or simply needs fine-tuning?

• Tap into relevant market research data that is already available, including information that you can gather from: competitive websites, search engines, associations, trade publications, boards of trade, chambers of commerce, government and industry resources (e.g. Statistics Canada, Industry Canada, City of Toronto and other city websites…), the media and business directories. Local, university and online libraries are often underestimated in terms of the resources they can offer to start-up businesses. Reference librarians can point you in the right direction if you are not familiar with business publications and directories.

• Leverage your network. You may know someone who knows someone who has experience with a related business who would be willing to share information and mentor you through your business planning process.

• Once you have tapped the available, relevant market research data (this is called secondary market research) you can determine whether or not you will need to conduct primary market research i.e. focus groups, surveys or experiments.

• If you decide to conduct a primary market research study, you can design one that is positioned to deliver on your goals, yet be cost effective, by consulting with a marketing professional to ensure that: 1. Your questions do not lead participants to respond in a predetermined fashion. 2. Your questions are designed to align with your objectives. 3. The participants are an appropriate representation of your future client base. 4. The method and distribution of your market research study are set up to maximize responses and invite insight. 5. Your questions position the vision of your business in a manner that can easily be understood by participants.

One final market research tip, prepare yourself to begin this initiative with an open mind. You will find that it is very easy to only see what you want to see and convince yourself that your business planning premise was on track. However, the best way to capitalize on this market research effort is to be truly open to either changing or fine-tuning your business plan based on findings that surprise and enlighten you.
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