How to Conduct Business Research

At some point in your educational pursuits, job search or work you may need to conduct business research. Any entrepreneur or marketing professional may need to research their company's industry and competitors. Business research may be used to help create a competitive analysis for a start-up company or as part of a business plan for a small-business loan application. Business research may also be used to evaluate the stability and growth of an industry or a company, information that applies to your career planning, investment choices or is used for market analysis.

Difficulty: Moderate

Instructions

Things You'll Need:

• Access to library

1. Research the scope of the business' sector by using standard definitions and classifications as organized by the U.S. Census Bureau's North American Industry Classification System (NAICS). The NAICS, formerly SIC (Standard Industrial Classification) system, assigns a code to businesses based on farming, mining, construction, wholesale, retail, health, service industry and other business types.

2. Conduct primary research by creating surveys for existing and potential customers, focus groups. Analyze the company's sales records.

3. Read trade journals and industry magazines relating to the primary business function. Business journals are available at the library, in digital versions online, or receive free copies of trade magazines by requesting subscriptions (see Resources).

4. Conduct local business research by contacting the Chamber of Commerce and requesting access to a directory. Interview local and competing businesses by calling or visiting the companies.

5. Visit the local Small Business Administration Office, which offers free resources and experienced business professionals who can aid you in your business research. You may need to make an appointment.

6. Use financial information available on investing websites to research public companies. Revenue, number of subsidiaries and employees, dividend information and lists of competitors are available for free.

Tips & Warnings

• The reference librarian at the library can help locate business directories for you, particularly if the library has a separate business reference librarian. The type of industry the company is in will determine which print and online resources you should use for the research. Manufacturing companies may be researched in Thomas Register. Large U.S. companies can be found in the Million Dollar Directory or Hoovers. (See Resources)
• Verify financial information found online in at least two other web sources or in a print directory. Never fail to identify yourself and your purpose when researching companies in person, on the phone or via email.

Resources

• North American Industry Classification System
• U.S. Census Bureau -Statistics of U.S. Businesses
• Hoovers - Online Business Directory
• Free Business Magazines
• Thomas Register Online Directory of Manufacturers