Authors: Inc The Staff of Entrepreneur Media

Start Your Own Business (18 page)

BOOK: Start Your Own Business

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20 Questions

Whether you use students, get help from the SBA, use a market research firm or go it alone, there are simple ways you can get primary research information.

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Focus groups.
A focus group consists of 5 to 12 potential customers who are asked their opinions in a group interview. Participants should fit your target market—for example, single men ages 18 to 25, or working mothers. To find participants, just go to your local mall or college campus and ask people fitting your customer profile if they would answer a few questions. Focus groups typically pay $75 to $100, or more.
Although focus group interviews are informal, you should have a list of questions to help you direct the discussion. Start by asking whether your product or service is one the participants would buy. If so, what is the highest price they would pay? Where would they shop for such a product? Do they like or dislike the product’s packaging? Your questions should center on predetermined objectives, such as determining how high you can price your product or service or what to name your business. The “Sample Focus Group Questionnaire” on page 109 is for a mail order chocolates company, but you can customize it for your business.
If you’re going the do-it-yourself route, you will probably act as the focus group moderator. Encourage an open-ended flow of conversation; be sure to solicit comments from quieter members, or you may end up getting all your information from only the talkative participants.

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Telephone interviews.
This is an inexpensive, fast way to get information from potential customers. Prepare a script before making the calls to ensure you cover all your objectives. Most people don’t like to spend a lot of time on the phone, so keep your questions simple, clearly worded and brief. If you don’t have time to make the calls yourself, hire college students to do it for you.

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Direct-mail interviews.
If you want to survey a wider audience, direct mail can be just the ticket. Your survey can be as simple as a postcard or as elaborate as a cover letter, questionnaire and reply envelope (for an example of the latter type, see pages 111 and 113). Keep questionnaires to a maximum of one page, and ask no more than 20 questions. Ideally, direct-mail surveys should be simple, structured with “yes/no” or “agree/disagree” check-off boxes so respondents can answer quickly and easily. If possible, only ask for one or two write-in answers at most.

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E-mail interviews.
Many of the principles used in direct-mail interviews also apply to these surveys. Give clear instructions on how to respond, and be appreciative in advance for the data you get back.

AHA!

Small fries have big ideas that could help your business grow. If you are starting a child-related business, consider using children as marketing consultants. Kids think creatively—a big asset for entrepreneurs trying to reach this market. Companies like Microsoft and MTV hire kids to learn their views. But you don’t need to be so formal: Just try polling the kids you know. Get their responses, and ask them for suggestions.

Making a List

How do you get the names of potential customers to call or mail questionnaires to? You can get lists from many places, including your suppliers, trade associations or a list-rental company. List-rental companies can give you access to a mailing list of a group of people who fit into your desired market. Refer to your local Yellow Pages for the names of list-rental companies. If none are listed, contact the Direct Marketing Association. (For more information on mailing lists, see Chapter 30.)

A less sophisticated approach to finding potential customer names is picking them at random from the phone book. If you’ve developed a latex glove for doctors, for example, you can get doctors’ names out of the Yellow Pages. Whatever method you use to gather your information, the key to market research is using what you learn. The most sophisticated survey in the world does you no good if you ignore the information and the feedback customers provide.

Sample Focus Group Questionnaire

Sample Direct-Mail Cover Letter

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Sample Direct-Mail Questionnaire

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