Every Market Research Resource for Your Kansas City Business or Side Hustle

Running a business can feel like you’re making it up as you go along. The secret to success is having data behind all of your actions — even if it might not seem like you know what you’re doing.

Market research will help you get the information you need to make informed decisions. Learn how this data can power your business and how you can get it. Get ready to investigate:

• What is market research and why is it important?
• When should I do market research?
• What questions should market research answer?
• What are the types of market research?
• What are reputable sources of secondary research?
• Where does competitive analysis fit in?
• What free resources can help me with market research?

This is research that’s interesting and directly applies to your business, so forget that horrible high school research paper and let’s jump in.

What is market research and why is it important?

Market research is the process of collecting data that will help you understand your current and potential customers. It also explores how these people react to your goods or services.

You might have an amazing idea, but unless it resonates with your audience, you don’t have a sound business. Your audience — the market — decides what works. Market research can help you:

• Determine demand for your offerings
• Identify ways to make your products or services more appealing
• Find strategies to grow your business and increase profits
• Keep an eye on your competition
• Make informed business decisions

Think your venture doesn’t need market research? Think again. Zik Nawnganga of “City Entrepreneur” and Triumfia Houmbie Fulks, cofounder of CodeAlgo, spoke about the importance of this investigation. See the entire conversation here.

“If you want to start a company or product, go to the consumers,” Zik says. “Make sure you are starting with the problem they need, not the problem you think they need.”

Triumfia agrees — and has changed her offerings significantly based on user feedback.

“It is super easy to feel like the solution that you’re building is what they need without actually talking to them, because of course we all have great and brilliant ideas,” she says. “But until you actually hear your customer, you don’t know if this is, in fact, a solution that they need.”

Market research can save you time and money. It also signals to potential investors that you’ve literally done your homework.

When should I do market research?

It’s never a bad time for a reality check in the form of market research. But it’s especially important when you’re:

• Starting a new venture
• Considering significant changes in your business

Think of market research as the engine of your business plan. It supports your decisions and provides the data needed to do things like determine sales outlooks and attract customers.

What questions should market research answer?

The specific questions you focus on in your research will depend on where you are in your entrepreneurial journey. If you have an idea about working with dogs, your questions are going to be different than if you already own a chain of grooming salons. But the U.S. Small Business Administration’s guide to market research points out that when you’re starting a business, effective research generally addresses:

• Demand: Do people want your offering?
• Market size: How many people would be interested in your product or service?
• Economic indicators: What are the income range and employment rate in your area?
• Location: Where do your customers live, and where can your business reach?
• Market saturation: How many similar options are already available to consumers?
• Pricing: What do your potential customers pay for these alternatives?

No matter when you’re researching your market, consider:

• Who is your customer? What is their demographic info like age, gender and household income?
• What unmet needs do your customers have? What do they wish you would do for them?
• What industry trends should get your attention? What do people love about your competition?

Learn more in this guide from Entrepreneur.com.

What are the types of market research?

Market research falls into two buckets: primary and secondary. Primary research is study that you do yourself or you have someone do specifically for you. Secondary research is referencing information that’s already compiled. Most of your research will probably be secondary.

There are two kinds of primary research:

• Quantitative research is all about numerical data. It can help you analyze statistics and see trends. Tools for gathering this specific information include surveys, questionnaires and interviews.
• Qualitative research focuses on reasoning. It provides examples of consumer opinions, wants and needs. Tools for this exploratory research include focus groups, in-depth interviews and observations.

The kind of market research you do will depend on your goals, timeline and budget. You need a plan.

Keep in mind that new entrepreneurs often find that listening is their most powerful research tool. Ask the people around you and in your target audience how they feel about your idea. Avoid leading questions and don’t settle for “your idea is perfect.” When you are open to honest feedback, you get the most powerful input.

More formal primary research can come in the form of surveys, interviews, focus groups and test marketing. Looking for specific questions to ask in your market research? Here are some of our favorite sources:

• SurveySparrow: 100+ Market Research Questions to Ask Your Target Audience
• Small Business Trends: 132 Market Research Questions to Ask
• Indeed: 29 Market Research Questions You May Want to Ask Your Customers

What are reputable sources of secondary research?

All you need is an internet connection and a library card. In Kansas City, our four public library systems have a variety of free resources designed to help small business owners. These include:

• A-to-Z Databases allows you to search 30 million business profiles. Find it at Kansas City, Kansas Public Library and Kansas City Public Library.
• Census Business Builder is an interactive website that offers demographic and economic data from the U.S. Census Bureau. Find it at Kansas City Public Library.
• Census Bureau Data is maintained by the U.S. Census Bureau. It includes statistics on more than 40 variables, like social and housing characteristics. Find it at Kansas City Public Library.
• American Community Survey provides more detailed data than you’ll find in Census Bureau Data, but only for larger geographical areas. Find it at Kansas City Public Library.
• DemographicsNow is a tool filled with info like income, age ranges and business competition in specific geographic areas. Find it at Mid-Continent Public Library.
• Reference Solutions is a prospecting and email marketing tool that can help you develop lists of names and addresses. Find it at Johnson County Public Library, Kansas City Public Library and Mid-Continent Public Library.
• Gale Business: Insights provides detailed company and industry information so you can learn about your competition. Find it at Mid-Continent Public Library.
• Gale Directory Library is the electronic version of several traditional print titles. You can search, sort and export data or generate mailing lists. Find it at Mid-Continent Public Library.
• Statista lists more than 1 million statistics on 80,000 topics from more than 170 industries. Find it at Kansas City Public Library and Mid-Continent Public Library.
• Mergent Intellect includes info on public and private businesses as well as a residential directory, consumer data and demographics. Find it at Johnson County Public Library.

Want the inside scoop on how to make the most of some of these tools? Check out the SCORE sessions Online Market Research Tools and Market Research: Checking Out the Competition with the Public Library.

Keep in mind that you can also access hundreds of years of magazines and newspapers through your library. And libraries have staff who specialize in assisting business owners. Learn about all the business-boosting resources available in KC libraries.

Another incredible source is your local Small Business Development Center (SBDC). These organizations can provide all kinds of market research, from reports on retail opportunity gaps to lifestyle and interest data for specific consumer segments. See a list of SBDC resources.

You can also find a treasure trove of data on various federal government sites. For example, you can find:

• Information on consumer spending via the Bureau of Economic Analysis
• Earnings by occupation and education via the S. Bureau of Labor Statistics
• Income statistics via the S Bureau of Labor Statistics
• Statistics of U.S. businesses via the S. Census Bureau

Find more government data sources in the U.S. Small Business Administration’s guide to market research and competitive analysis.

Where does competitive analysis fit in?

We thought you’d never ask!

Competitive research is a subset of market research. It uses the same techniques to help you learn about what your competition is doing now and what they may be planning for the future. Done right, competitive analysis should help you understand the strengths and weaknesses of your competitors, as well as what makes your business different.

Although it’s a subset of market research, competitive analysis is vital to the success of your venture, and it’s something that investors look for. In his SCORE Kansas City presentation, “Small Business Funding – How to Find Investors for Your Business,” coach Allen Clary notes that not knowing your competitors well is a red flag.

“This is one of the major things that I see folks fall down with: it’s they don’t really study their competition enough,” he says. “You need to know all of your direct and indirect competitors … You can point out your differences and the things they don’t do well, but one of the big turnoffs for an investor is when you say you don’t have competitors.”

Many of the secondary resources listed above are ideal for uncovering information about your industry, other players and overall trends. But valuable competitive research can come from just paying attention, too.

By monitoring your competition’s social media and websites, you can get a good idea of what they’re up to. And paying special attention to reviews — especially negative ones — can provide insight into what they’re doing well and where there’s opportunity in the marketplace.

Google is also a land of opportunity for competitive research. Something as simple as searching for relevant keywords can show you how competitors are ranking in the results. Pay attention to the ads that pop up as well. Analysis of ads can show you how competitors are positioning their offerings and what messaging they’re using. Google Ads Keyword Planner can provide insight as well. Web intelligence platform Oxylabs offers a thorough overview of the competitive research capabilities of Google.

What other free resources can help me with market research?

KCSourceLink is your one-stop shop for free and low-cost entrepreneurial guidance. Whether you’re looking for a workshop about market research or personalized coaching, the KCSourceLink calendar and Resource Navigator can point you in the right direction. And the KCSourceLink Guide to Growing Your Business includes a list of Resource Partners that provide assistance with marketing.

If you don’t even know which way is up, our smart Network Navigators can create a Personal Action Plan just for you. This individualized to-do list will outline who you should meet and what you should do to get moving toward your goals.

That said? We have some favorite market research resources that we didn’t have room to include above. When you’re ready to learn more about the ins and outs of market research, check out:

• com: Entrepreneurs Love These 13 Tools for Conducting Market Research
• SCORE webinar: Market Research: Uncovering FREE Research Resources
• SCORE: 4 Tips for Doing Market Research for Your First Business
• Entrepreneur: Market Research: What It Is and How to Conduct It
• SCORE webinar: Marketing Insights Unleashed: A Business Owner’s Guide to Market Research

Photo by Alvaro Reyes on Unsplash.