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5 Easy Steps to Conduct Industry Research for a Small Business

Read time: 7 Minutes

Updated: 11th June, 2023

Introduction

Starting a small business can be overwhelming at times. There are so many different hats to wear – CEO, Salesperson, Marketing Director, Designer, and more. It’s tempting to cut corners to lighten the load, but that could harm your business goals in the long run. That’s why researching your industry is crucial. It not only sets boundaries for your business, but it also uncovers new opportunities. Even if you’ve been in the industry for some time, taking a step back and reassessing is always beneficial. So go ahead and look at your industry with fresh eyes – you might be surprised by what you find!

This blog will help you conduct a Small Business Industry research

Looking to learn more about the Small Business Industry? Look no further! This blog is here to guide you through conducting industry research, which can help you uncover opportunities and gain a deeper understanding of what to expect and what to avoid in your industry. By taking advantage of industry research, you’ll be better-equipped to succeed in your business endeavors. Let’s get started!

What is an Industry?

Industries are like families of businesses, all related because they focus on similar things. Whether it’s making products or providing services, these companies form groups based on their main source of income. Did you know that industries have no boundaries? That means even small local brands can go toe-to-toe with big international players! From department stores to soft drink makers, there are plenty of industries out there, all with unique quirks and challenges. Just remember that companies within the same industry are likely to be in competition with each other, so it’s always good to know your competitors!
 

3 Industry Examples

If you want to get a better understanding of various industries, I recommend checking out some recognizable examples. I’ve chosen three to highlight: two well-known industries and one example of a small business venture. Let’s dive in!

Image sourced (S.Butler-Young. 2019)

Image sourced (S.Butler-Young. 2019)

1. Sportswear Example

Sportswear is a super versatile and comfy style that takes inspiration from athletic clothing. It’s loved by so many people! There are three big players in this field – you probably recognize them well (P.C.Warner. /).

Three Examples:

Image sourced (J.Lovejoy. 2015)

Image sourced (J.Lovejoy. 2015)

2. Carbonated Beverage drink Example

So you know those drinks that tickle your nose and make you feel all bubbly inside? Yeah, we’re talking about carbonated or fizzy drinks. They’re basically beverages that have bubbly carbon dioxide dissolved in water. And that bubbly sensation you feel? It’s called effervescence or fizz.
 

Three Examples:

 

Image sourced (S.Butler-Young. 2019)

Image sourced (S.Butler-Young. 2019)

3. Pulsed electromagnetic field therapy Example

PEMF, which stands for Pulsed Electromagnetic Field, is a type of therapy that involves sending low-level magnetic frequencies into the body. One of my clients is also in this industry; they are a small business that is navigating its way through the competitive field. I will use them as an example when filling in the template below.
 
Three Examples:

Why Does Knowing Your Industry Benefit You?

Knowing your industry can have many benefits for you and your business. By taking a look at the top players within your industry, you can get an idea of what is expected and what marketing efforts have been successful. This can save you time and money by helping you work smarter toward success.

Small businesses especially have to be strategic with their resources when it comes to marketing. Knowing your industry can give you insights into what tactics work and what doesn’t. This way, you can avoid wasting valuable resources on ineffective methods and instead focus on portraying your brand in the most effective way possible.

However, it’s important not to copy what others do in your industry. Instead, use this information creatively to find unique opportunities for your brand. Look for niche areas that you can fill and use your industry knowledge to your advantage. Knowing your industry can be a powerful asset to your business and give you the edge you need to succeed.

Conduct your Small Business Industry Research in 5 Easy Steps

Here’s a straightforward approach to conduct industry research tailored to small businesses. In just four simple steps, you can finish the job in about 45 minutes. Give it a go and see how it works for you!

Step 1: Who is within your Industry(Competitors)?

I recommend identifying three to five companies or brands that operate within your industry. Try two to two global businesses and two local ones to give you a varied demographic and style.

2.1.2- How to do your small business Industry research_1 copy
2.1.2- How to do your small business Industry research_1 copy 2

Step 2: What is your Industry about (Industry Definition)?

It sounds simple, but what is your industry, and what’s its purpose? Look at the definition and put it down in writing. It helps when you start to see the marketing efforts of other companies and how they use the platforms.

Step 3: Why should people care about your Industry?

The whole point of a business is to cater to their consumer, the people they sell its products or services. So why should they care?

2.1.2- How to do your small business Industry research_1
2.1.2- How to do your small business Industry research_2

Step 4: How will you benefit the Consumers compared to this competitor?

Look at the people within your industry who are buying from this competitor. Are you able to see some gaps in marketing opportunities? Define how you will benefit them that is different from the competition.

Step 5: Identify Industry Trends

This additional step is crucial for uncovering trends and market gaps to leverage for your business.

As a topical phase, it’s up to your judgment to discern what’s happening. Any advice provided may be outdated by the time you read this. Trust your instincts and stay current to seize any valuable opportunities.

2.1.2- How to do your small business Industry research_3

Key Takeaways

  • It would help if you had a clear understanding of your Industry and should be able to define it in simple terms.
    • This definition will help create a picture of what is expected.
  • If you figure out what your industry offers that can benefit consumers, you’ll have an easier time narrowing down your choices for how to provide that benefit.
  • Find companies within your Industry as examples to inspire you.
    • Global and local to instill examples of what to do and what not to do.
  • Industry research is a tool to help your small businesses focus on what is expected within your field.
  • The overall objective of industry research is to find gaps of opportunity for your business to benefit the consumer.

Summary

It’s important to know your industry inside and out. The more you familiarize yourself with the standards and mistakes others have made, the better equipped you’ll be to succeed. And let’s be real, success ultimately comes down to the customer. So, put the focus on them. Figure out what they need and what sets your business apart from the rest. Once you’ve got that sorted, take a peek at your competitors. By doing all of this, you’ll have a solid understanding of your market and be able to identify the opportunities that lie ahead.

Remember, there are no right or wrong ways to do business, only risks, and opportunities. It would be best if you took risks to find the opportunities.
Billyajames-Industry-Research-V3-

Works Cited/ Resources