Do your homework and feel the future benefits of a new venture

Starting out in the market place can prove daunting but thorough research will help ease the way and then help to stay ahead of the pack.

People looking to take advantage of the economic recovery by starting their own businesses are being urged to thoroughly research their market place before taking the plunge.

Time spent analysing competition and gaining an understanding of what will work in a particular part of the region, can yield massive benefits in the future.

And the research doesn’t stop when a business has successfully taken off. To keep a firm at the forefront of its field, those behind it need to always be aware of what their competitors are up to, and of any new developments which can keep the business ahead of the rest.

Steven Leigh, head of policy for the Mid Yorkshire Chamber of Commerce, said people should thoroughly research the market before investing in a new business or growing an existing one.

“You need to know what the competition is, what the general trends in a particular business are likely to be, and what threats are likely to arrive.

“If you don’t do your homework, you could find out someone close by is offering a similar service at much less cost.”

He compared the preparation that is required, to that needed before decorating your front room.

“You need to have everything ready. You would strip the room, rub the walls down, and take advice if you didn’t know what you were doing on any aspect of it.

“You wouldn’t just slap emulsion over the wallpaper without first knowing how it will turn out.

“It’s the same with a new business. You must take advice so you know what can work and what won’t.”

He said setting up a successful business is all about common sense.

“And you need to remember that market research is necessary throughout the business operation.”

An established business which is looking to take the next steps in its growth cycle might be considering diversifying or entering new markets. In that situation it is vital to consider what is happening in the market, where the gaps are, and to gather information which will help.

A number of groups, including the Confederation of British Industry and the Federation of Small Businesses, as well as Chambers of Commerce can offer guidance.

Mr Leigh said: “We advise many businesses and our strong recommendation is before people start spending money it is essential to do thorough market research.

“If you do all that important work you will be far better placed.”

Having support from experts who know a particular region can be a huge help in identifying potential risks, and makes researching your market much easier.

RBS, through its network of relationship managers across the region, has people who specialise in helping new and developing businesses tackle the issue of market research.

Being based on the patch means the bank’s experts are constantly kept up to date with changes, and can pass on crucial information to keep a business ahead of its competitors.

• RBS England & Wales is to be the future Williams & Glyn, a new bank for both personal and business customers with a particular strength in supporting SMEs.

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