Ideas Generation
Researching the Market
Start Your Own Business Training
Programme
Just a little note re Budget 2014
Start Your Own Business (SYOB)
“An incentive for individuals who have been long-term
unemployed for at least 15 months prior to starting their
own business will provide a two-year exemption from the
charge to income tax up to a maximum of €40,000 income
per annum.”
- Be careful of the detail
- Check it out www.revenue.ie
Business ideas
• Two primary sources
– Need/potential need in market place
– Your own skills, knowledge and interests
Very often a mixture of the two
Skills – Experience - Market
Liam Ferrie
Irish Emigrant
http://www.emigrant.ie
What about Neven, Eddy and Kevin?
Is there a latent market for your skills/your expertise?
Generating Business Ideas
Identifying Opportunity – Local & further afield
Can you turn the skills/interests
you already have into a
business?
•Think
•Act
Can you take an existing product
or service and make it more
appealing (i.e., value adding?)
to you?
Does buying an existing business
appeal
What about buying a franchise?
E.g. See franchisesireland.com
Generating Business Ideas - Franchising
• Recognised brand
• Tried and tested business
formula
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Make sure you understand the agreement and its implications
Do your research
Talk to existing franchisees
Professional advice recommended
Example of Franchising Agreement
Buy an existing business
• Make sure you know what you’re getting!
• See the audited accounts of the business
• Is there significant good will?
• Go to the premises/send someone with judgement at different times
• What is foot fall?
• How many are buying?
• What are trends? E.g. New parking regulations/one way
systems/competitors
Assessing your idea
• Be realistic - there will be constraints
• The Key Questions –
– Is there a market for the product/service?
– Can I reach the market?
– Can I meet demand profitably?
Factors to consider – for example
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Demand
Your own skills
Is suitable training available
Can you protect your idea?
How will you manage the business launch and
development?
• Entry costs
Factors to consider – for example
• Potential Demand e.g. Dog grooming; Plumbing
Supplies/Services and Industry Specific Reports
• Your own skills
• Is suitable training available?
• Can you protect your idea?
• How will you manage the business launch and
development?
• Is the business scaleable?
Really think about it
• You might want to test out a number of
different ideas/different variations of a core
idea
• Brain storm
 Talk to people you trust
 Observe – Read - Research!
Eureka moments….
• Keep you mind open as you go along!
One idea often leads to many others!
Eureka moments are rare –
But they can happen –
(eventually!)
Market Research
Market Research - Introduction
From “big picture” to detail!
Market Research
• What is it?
“Market research is the process of collecting
relevant information to help you establish if
there is a market for your proposed product or
service”
- not only “a market” but a big enough and
sustainable market at a price that will make
the business profitable for you
Key Elements of Successful Businesses include:
Hard
Work
Effective
People
Enthusiasm
Finance
A Driving Force
The Entrepreneur
Marketable
Product/Service
Resilience
Determination
Luck?
Why research
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Reduce risk
Identify potential customers
Set realistic targets
Develop effective strategies
Signal potential problems
Identify business opportunities
Essential component of Business Plan
What to research
Potential
Customers
Competitors
Market
Trends
Regulatory
Issues
What is the most important element of a business?
Customer Research
Examples:
• Who will buy it?
• How many will buy it?
• When will they buy it?
• How often will they buy it?
• Where will they buy it?
• Why will they buy it?
• How much will they pay for it?
Competitor Research
•Who are they?
•Where are they?
•What do they sell?
•How do they sell?
•Why do people buy from them?
•Above all, how will you compete with them?
Market Trends
Trend type
Demand
Demographic
Industry
Technology
Seasonal
Consumer attitudes
Buying patterns
Product life cycle
Example
Increase, decline
Lower birth rate, less marriages
New fashion, increased competition
e-commerce, innovation, m-commerce
Weather, Christmas, tourist season
Ethical purchasing, healthier living
Online purchasing, spending less
Introduction, growth, maturity, decline
Regulatory Issues - Current and Future
For Example:
Sector Specific e.g. food, childcare, licensing
Planning compliances
Waste disposal
Advertising
Pricing
Grants/taxes
Types of Market Research
Primary
Secondary
You generate the information
Use existing Data
Make sure you know what you need
to find out!
Make sure you know what you need
to know and that the sources you use
are reliable
Can be expensive and Time
Consuming- electronic much cheaper
Less expensive/time consuming
Good research > Valuable results
Bad research > irrelevant/unreliable
data
Good research > Valuable results
Bad research > irrelevant/unreliable
data
Finding customised to your specific
needs (if it’s well done)
Sources not customised to your
needs, but this may not matter
Quantitative/Qualitative Research
Quantitative
Qualitative
•How many?
•Why?
Motives/
Aspirations
Why conduct Primary Research
• Totally new idea
– Which can create huge opportunity and also
significant risk …
• No existing sources of information
• Need qualitative information
• In depth or specific information required
Repeat … Primary Research Is Expensive
All research must be well thought out, designed and
implemented
Make sure the information collected is useful and
“future proofed”
Relevance is all important
Always test before you go full blown!
Primary Research Methods
• Surveys
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Personal survey
Telephone survey
Postal survey
One to one meeting
Focus group
Internet survey/e-mail e.g www.surveymonkey.com
• Non interview/survey methods
• Observation
• Mystery shopping
• Your own experience/knowledge – be careful here!
• Test Marketing
A word about surveys
They can be expensive – Lots of good on-line options e.g SurveyMonkey
Make sure you are finding out what you want to know
Be careful how you frame the questions
Ask the right questions in the right order
Always leave an alternative for “Don’t know”/”Not sure”
Run a test before going full blown
Analyse and use results wisely – they may throw up new opportunities
Secondary Research – Sources of Data
• Using existing research from trusted sources
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Central Statistics Office (www.cso.ie)
Local Enterprise Office (www.localenterprise.ie/Cavan)
Enterprise Ireland (www.enterprise-ireland.com)
IDA (www.idaireland.com)
Research companies e.g. www.kompass.ie, www.finfacts.ie
Business Access to State Information and Services (basis.ie)
Department of Jobs, Enterprise and Innovation (www.enterprise.gov.ie)
Companies Registration Office (www.cro.ie)
Government Departments e.g. www.bordbia.ie for food (Reports and
Regulations), Crafts Council of Ireland for Crafts
• Voluntary organisations/Trade Associations e.g. Reiki Federation of
Ireland
More Sources of Information
• Newspapers – news, features, opinions
• Specialist magazines
• Blogs
• On line Discussions
• Competitors’ websites
• Telephone directories (www.goldenpages.ie)
• Search Engines (be careful! Use your knowledge/judgement!)
Internet – Great –
But Use with Caution!
Search Engines e.g.
Beware!
Use with caution …e.g. “restaurants Cavan – About 512,000
results 
New Site – Being Developed
• www.airo.ie – Geo Profile Tool
(Under development)
• Keep an eye on it – very useful!
The Research Process
Identify information required
Choose sources of information
Test Your Research Method
Conduct the research
Analyse/use the research
How does your idea stack up?
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
How does your idea stack up?
PEST Analysis
Political
Economic
Social
Technological
Can you do without it?
The Research Process
“If I had asked people what they wanted,
they would have said faster horses.”
Henry Ford commenting on the success of the Model T
The Research Process
Valve Radio 1920 - 1953
Transistor invented
1950 in US
Regency TR-1
1953 - Japan
All Transistor TV
Japan 1958
“There was no market research -
Akio
Morita
The
public
doesn’t know what is
SONY
possible – We do!”
Walkman
Japan 1980
The Research Process
Market Research?
Customers - what you need to know
Tried and Tested Business Tools
These personal tools have been
developed over many many years!
Research…… stay awake
Stop, Look, Listen and Learn!
What we Considered today
Introduction – Starting Your Own Business
Self Assessment – Personal Qualities
Introduction to the elements of a Business Plan
Ideas Generation
Market Research
Schedule
Four 1 Day Workshops
+ Follow Up Clinic for Business Plan Review
Module 1
Introduction - Start Your Own Business and Personal Assessment
Module 2
Ideas Generation and Researching the Market
Module 3
Legal Issues for Start Ups and Managing People
Module 4
Sales
Module 5
Marketing the Small Business
Module 6
Preparing a Business Plan
Module 7
Bookkeeping and Records Management
Module 8
Financial Management