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Small Business Achievement Thinking Through Study

You need to be a student of your clients. A small business leader needs to know and appreciate their clients. You need to study their behavior to constantly develop and enhance products to meet their needs. Having the habit of studying your clients creates a powerful tool to help you grow your small business.

What do I mean by studying your client? That is research, right?
Study is really on-going research. You need to be an observer of the environment in which your clients live and work. By know what influences them you can better appreciate and predict their buying behavior.

The key is really timing. For example, suppose that you read an economic report specific to the demographics of your core market. The report is an example of information that you can use to make decisions in your business. The information is historic however. Something already happened. Not only that, but the information is public knowledge. You have it and your competition may have access to it as well.

By studying the environment that impacts your client, you can be ahead of the game. This is analogous to predicting when somebody will want something. Read what your clients read. Participate in the same activities that interest them. By knowing the day-to-day experiences of your clients, you will provide a better product and service to better meet their needs. Study your clients to learn how their environment today will impact their purchases tomorrow.

The more accurately you can anticipate and plan for the future changes in the buying behaviors of your clients, the better prepared you will be to grow your small business.

Small Business Achievement – Thinking Through Pre-Action Not Reaction

You want to be one step ahead. Small business leaders often need to work incredibly hard to maintain everything. Reaction to events is commonplace, but it is pre-action that is truly the way to grow your small business. Pre-action is a great strategy to grow your small business.

Anybody can react to a situation. The truly exceptional people will take positive, preemptive action: pre-action. You want to take action before your competitors. Rather than reacting to market conditions, you want to predict marketing conditions. By taking the correct action before your competition does, you will create a competitive advantage for yourself.

How can you do this? Educate yourself about your industry. Stay knowledgeable about trends. You can do this by doing research yourself, hiring a researcher, or directly asking your clients. Let me provide you an example of how I did this for the creation of my Aspirations book.

I directed my book designer by providing them a general theme for the creation of sample book covers. I really liked one more than the others, but I am market focused. I wanted to create a book cover that people would like. A reactive person would have published a book with a specific book cover, and if it did not work, they would have tried another cover.

I created a simple website and slides of the various samples that I had. I emailed my client and potential clients and had them participate in an online survey. I showed the slide to my business college students and had them comment as well. People appreciated the opportunity to participate in the creation of a book. With their comments I was able to make a pre-action oriented decision.

By substituting pre-action steps for reactive, you are creating a powerful strategy to grow your small business.

Market Research – Benefits, Methods and Analysis

Market Research is an exhaustive organized process where informative and relevant data is collected for a market/ product or a service. This data is used to study and analyse current market scenario and build future projections which can be used for business planning and strategic moves.

Market Research: Benefits

– Assists in future planning of the business. E.g.

  • Should the company expand its product line
  • Will the product be profitable

– Makes Decision Process easier

– Gives factual information (thus breaking business myths/ and individual perceptions)

– Reduces risks

– Assists in identifying competitive edge

Small or big all enterprises can and should take strategic decisions after conducting a market research in the related field.

Market Research: Methods

There are broadly two types of research

1. Quantitative Research

In this process numerical data is generated which measures the market’s phenomena and demands. This is used for statistical analysis using various mathematical and computational techniques. It quantifies attitudes/opinions/behaviour on a sample and is then extrapolated for the full sample. This is usually conducted through surveys and questionnaire.

2. Qualitative Research

In this more insights and understanding is measured for the topic. It explores various options and gathers opinions. This kind of data is collected through interviews, group discussions etc. The insights are then used to explore various business decisions.

Market Research: Analysis

This is the trickiest part as data collected has to be strategically used in gaining intellectual analysis. Business experts and market research analysts are very well acquainted to do this work.

It is very exhaustive work and various techniques & tools are used to get useful conclusions. Interestingly the same data can be used to make different inferences depending on the research needs and goals. Some common data analysis types are briefed –

Data mining – this technique focuses on modeling and discovery of knowledge discovery for predictive purposes. This method is not useful for descriptive purposes.

Business Intelligence – this technique focuses on business related information covering data analysis that relies on data aggregation.

Statistical applications – it can be

  • Descriptive statistics
  • Exploratory data analysis also called EDA (discover new features)
  • Confirmatory data analysis also known as CDA (confirms the existing hypotheses about the data)
  • Predictive analytics focuses on application of statistical models for predictive forecasting or classification e.g. market growth in 2022- with data available for 2015
  • Text analytics uses statistical, linguistic, & other methods to pull out data and classify the information received from text sources.

This analysis is then constructively used in the business planning bringing a profitable inclination towards the decisions taken. Business planning plays a major role which reflects the survival of the business.