Hanover’s Perspective
Three Free Sources of Market Data for Small and Startup Businesses
Are you interested in starting your own business? Many people consider this life and career-changing option on a daily basis, but how and where do you start?
Contact the Small Business Administration (SBA), and start collecting data to determine if your idea is sound and if there is a potential customer base to tap. Understanding and utilizing up-to-date market data will be critical to your success.
Next, you should dig deeper into your research. Where should you locate your business? How do you write a business plan? What is your marketing strategy?
There are many free data sources for you to use through the SBA and other government agencies.
The U.S. Census Bureau can provide data to answer many questions associated with business startups to include: the size and number of businesses in a specific industry, demographic data, the economic base and activity of specific localities, what materials are purchased the industry of interest and what industries purchase the products or services you propose to produce or provide.
The SizeUp tool will allow you to see how your proposed business competes in the current marketplace. You can run custom reports and statistics relating to your industry or business, and SizeUp can also run reports that provide data on your competition to include their location, suppliers and potential customers.
Economic Indicator data is also available so that you can analyze current issues and market forces in your industry.
Now that you have access to the data, how can you use it to determine your next, best step?
- Know your target market and trends. This information will be very important if you are seeking investors. It will also be important information for your business plan and any bank loans which you may seek.
- Know your industry. What are the current trends with regard to consumer spending and employment?
- Know your competition. Where are your competitors and who are their customers? What is your value proposition that sets you apart from other business with whom you will compete?
As you navigate the process of starting your own business, you will want to be aware and utilize the free market data that is available to you. Knowledge of your industry, its consumers and the competition ahead of time will make for smoother sailing as you grow your business.