Research - Base of Successful Business

When it comes to running a successful business, information is power. The best way to gain information is through organized research. A competent business owner will know what areas to do research in to gain the most relevant and useful information for his business. The process of founding a business starts with research into the feasibility of the idea.

1. Research Before Startup

   When an entrepreneur first has an idea, he needs to begin with research into the market he is considering. Often, research reveals that the business idea would not be feasible, either because of an excess of competition or lack of a market. In this case, good research saves a business person money rather than making him money, by preventing him from entering into a venture that didn't have good prospects. If research does reveal good prospects, it can then provide further information about optimum times, locations and conditions under which to found the business.
   

   Market Research

   Market research is the lifeblood of many businesses. Because so many businesses function with a very narrow profit margin, they can't afford to engage in advertising, marketing or product development in fields that won't show a profit. Market research allows businesses to focus their resources in areas that will show a return. Market research may consist of focus groups, test products that are released within limited markets or public polls about product preferences. Companies also can learn a great deal by researching their own prior business records and learning lessons from their own successes and failures.
   

   Competition Research

   In order to succeed, any business needs to provide a product or service that is as good as or better than its competition, and at the same or lower price. To do this, a business needs to know what its competition is doing and how it is doing it. This type of research can range from buying and examining the competition's products all the way to legally gray areas involving corporate espionage. Corporate responses to this research can include improving its own products, pulling out of a certain market because it doesn't feel it can compete, or attempting to take over the competition through a merger or acquisition.
   

   Research and Development

   One of the most important areas of research in which business engages is in the development of new products. Depending on what field a particular business is in, products can range from the sublime to the ridiculous. Some businesses research improvements to human necessities, such as food, clothing and shelter, while others apply research methods to developing the latest profitable craze, such as hula hoops or iPods.There is at times a thin line between research devoted to fulfilling human needs and research devoted to creating new ones.