Improving your chances for getting money!!

By Brett Housholder, Researcher, Wyoming Market Research Center

So you want to start a small business?  How about some insight to improve your chances for getting the money to actually open your doors?

Starting a business can be a daunting task, even for the most knowledgeable and energetic entrepreneur. The first concern of a startup business is usually funding. Before lenders part with money entrusted to them, they’re going to want to see a business plan. There isn’t a bank on the planet that gives out loans for good ideas – they want to see evidence of preparation and research into the business and industry. The good news, however, is that you can arm your business plan with market research.

“Market research” isn’t just some fancy buzzword used by multimillion dollar corporations to convince shareholders their latest product rollout is going to be successful. It comes in many forms, all of which are relevant and useful to large and small businesses alike. Market research can answer simple questions like, “Who are my competitors?” It can also answer more complex industry-specific questions such as, “Who are the top fencing supply wholesalers in the Rocky Mountain region?
The extent to which market research can help small businesses isn’t limited to identifying competitors, customers, or suppliers; for example:
• If you’re opening a bookstore, wouldn’t it be helpful to know which genres are currently hot?
• If you’re going to sell high-end apparel, wouldn’t it be helpful to know how many customers in your market have the annual income to afford your products?
• If you’re going to provide care services for the elderly, wouldn’t it be helpful to know how many senior citizens live in your market area?

Knowing the trends within your industry and the demographics in your area are two more tools at your disposal to further reinforce your business plan.

Another decision facing today’s small businesses, in this age of e-commerce, is whether to sell online. If you’re planning on operating a website for your business the single largest key to success is visibility. If the major search engines can’t “see” your website you are limiting yourself to only customers who know your specific web address. Avoiding this pitfall is known as web optimization and since the majority of your online customers will use a web search to find your products or services, it is not something to overlook. For detailed information on web optimization check out this month’s Wyoming Business Tips article specifically addressing the topic.

If you want to start a small business, take advantage of the benefits of doing some homework. From simple tasks, like determining your competition, to specific details about your industry, market research can help you cover all the bases in your business plan to greatly increase your chances of getting the money to cut the ribbon of your new business.

If you would like more information on market research for your small business, on the services of WYOMING ENTREPRENUER.BIZ or the Market Research Center, contact Brett Housholder at lazarus@uwyo.edu or 307-766-5389.