Home Based Business Research

Your initial research for your home based business does not have to be extensive but it should be enough for you to determine if you have a viable product or service. The information you gather can be used in writing your business plan and your marketing plan.

You will want to expand on the questions in your Feasibility Assessment.

Your home based business idea may be great when you initially conceive it. If you take the time to test your idea, you can make sure it is a viable business for you.

You can do extensive research on the Internet. You will want to find out more about your industry, target market, and competitors as well as other business information for this home business opportunity.

Review the Feasibility Assessment. Determine which questions from that list need more research. Make a list of those questions and add any tothers that come to mind.

Some additional questions you may want to research are:

• How did the industry you will be working in perform financially over the past five years?
• What are the trends in the industry?
• Who are the leading competitors in your business?
• How do your competitors attract customers?
• To deliver your product or service, what kind of equipment or materials will you need?
• What services will you need to operate your home based business?
• What laws or regulations affect the product or service you will provide in your home based business?

Another way to gather information is to talk to people in the particular business you are interested in. Talk to vendors and to your competitors. Sometimes people already in your particular home based business will answer your questions and tell you about the problems they have encountered in starting their business.

Interview your potential customers. If your product or service is one that your family or friends may be interested in, find out what they think. Describe your business idea and how you plan to deliver your product or service. Use their feedback to refine your home based business and marketing plans.

Who is the target for your home based business?

Describe your customers. Create a profile of your business opportunity customer, listing the characteristics of people who may be interested in your product or service. Characteristics include:

• Gender
• Age
• Income level
• Occupation
• Education level
• Ethnic group

Who are the competitors for your home based business?

Your direct competitors will be small businesses like yours and you will be trying to reach the same target market. Depending on the product or service you are offering, there may be larger companies who are your competitors.

• How do they attract and retain customers?
• What is their share of the market?

Your research should include an analysis of your home based business competitors. Use a search engine, such as Google to find your competitors. To find your competitors, enter the name of your competitor if they are known to you. Or, do a generic search using keywords such as the type of product or service you are offering.

Review their Web sites. Look at how they present themselves and the information on their Web site.

• How do they describe their products or services?
• How large is the company?
• How do they describe themselves?
• Read the client comments and testimonials.
• Review their press releases.
• How do they price their product or service?

Another place to find your competitors in the classified ads of newspapers and the Yellow Pages.

Use a search engine to find more information for your home based business.

While viewing your competitor's Web sites, find out who is linking to them. You can find this information in a search engine like Google. In the search box, type "link" (without the quotes) followed by a colon and the URL of the Web site. Make a note of these sites. Look at them for potential links to your home based business Web site.

Your home based business idea may be great when you initially conceive it. If you take the time to fully research your idea, you can make sure it is a viable business for you.

The research you do may take time. It will help you to:

• Determine if your home based business idea is sound.
• Determine if it has a marketplace.
• Determine your start-up costs and your ongoing operating expenses.
• Determine how much work it will take to become successful.
• Determine if it is the business for you.

Research helps you to set realistic goals for the most successful home based business.

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