FAQs for Step 25: Gather Primary Research

Q: Do different business ideas warrant different research methods?
Q: The disadvantages seem overwhelming for all types of research methods, so which one should I use?

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Q: Do different business ideas warrant different research methods?
Absolutely.  The overall research strategy we promote here is to begin with the big picture (the secondary market research), followed by narrowing the focus and getting more specific information yourself (your primary market research). There are a number of points to take into account when selecting your methods, but we don’t think there is a best answer that fits all situations. However, here some things to consider as you choose which methods to use.

1.  If you’re doing market research on an online business, your methods will likely be more online as well, based on the assumption that your potential customers are online. Also, doing your surveys online enables you to do a number of different surveys targeting different groups, if necessary.
2. To research a small or home-based craft business, your best bet might be to canvass craft fair visitors.
3. If you are starting a business based on a close friend or relative’s promise of a certain amount of work, there’s not much point to surveying. For example, if your father-in-law has promised you a multi-year hauling contract (should you ante up and buy a truck), the most important part of your ‘market research’ will be to assess the stability of the father-in-laws business, the strength of his word, and then to get a signed contract.
4. For some business types, the most efficient method will be to conduct personal interviews of specific worker types.

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Q: The disadvantages seem overwhelming for all types of research methods, so which one should I use?

Each method has up and downsides that may be more important to you, depending on your situation. If you view the methods through a time-money-energy lens, you will quickly get a sense of which methods might work best from your perspective. Not that your needs are the only concern in this matter – you’ll want to take into consideration the needs of all stakeholders, especially those you want to provide you with the information you seek. Some methods will work better for some businesses or client groups, while other methods will be more effective for others. Here are some points to consider:

1.  If you have more time/less money – choose methods that use more of your time and cost less, such as observation or personal interviews.
2. If you have more money/less time – choose methods that use less of your time, but which will cost a bit more, such as focus groups.
3. If your target audience is fairly closely grouped geographically, personal interviews and focus groups would be more practical, whereas if you’re targeting customers scattered across the global, mail, telephone or Internet-based surveys would be more practical.
4. If your start-up or implementation goal is short term, you need a strategy that brings results quicker. If your goal is to start a business in 3 to 5 years, it might make sense to get a job in the industry or business of the type you plan to start.
5. Consider your personality as well. If you enjoy interacting with people, you might be better suited to manage methods such as personal interviews. If you’d rather not get too personal, you might have better luck with remote methods such as mail, telephone or Internet surveys.

For a great article with more information on surveying visit Wikipedia at http://en.wikipedia.org/wiki/Statistical_survey#Advantages_and_disadvantages_of_surveys

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Have a question?  Need Help?
Email us at faqs@riskbuster.com

We welcome all questions, comments and feedback and look forward to hearing from you!

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