Demographic research is one of the most important steps to undertake when you want to establish a business.
If you’re on a tight budget, there’s an easy way to use the Internet to start your demographic research.
Below you’ll find 4 tips to do so. If you’re a future small business owner who wants to establish a new business, pay attention here.
How to Conduct Demographic Research for Free
Everyone in the marketing and advertising industry knows that demographics matter. They can make or break a new business venture, even within the most well-established companies.
However, demographic trends aren’t easy to get a hold of, especially for small businesses that don’t have the extra resources needed for gathering reliable statistical data through market surveys.
With a little ingenuity, though, small business owners can use other resources to get the information they need to determine what their targeted demographic looks like and how they like to spend their money.
Below are four bits of easily-found information that can be used to create a rough idea of a region’s makeup and purchasing habits…for free.
Analyze the Population Count
Calculate how many customers you need every day to make a profit.
If it seems like a town may be too small to bring in that many customers each day, you might want to reconsider business locations.
Additionally, if you live in a large city (where the population is substantial) you still need to make sure there aren’t too many businesses around that are just like yours. Otherwise, you could lose out on customers to your competition.
Most municipalities, states and nations provide their most recent population counts on their official websites or through their government’s official census.
Photo Credit: ewen and donabel
Know the Key Economic Industry
Knowing the main economic industry helps you determine the spending power of a region.
If the locale’s main industry is “white collared” (oil and gas, government, health care, technology, tourism), it is safe to assume that the residents of that area can afford extra luxuries.
On the flip side, if the region’s main industry is “blue collared” (agriculture or manufacturing), the population’s spending power may not be as strong.
Gather Gender, Age, Race, Nationality and Religion Information
Different people want and need different things.
Men have unique interests that are different from women’s interests. Young people usually buy different items than older people. Shopping trends even differ between nationalities, races and religious groups.
To know if your customers will be interested in what you are selling, use government census data to learn about the make up of your targeted market. For example, you wouldn’t want to open a non-kosher restaurant or market in an area that is predominantly populated by followers of Judaism.
Know the Climate and Geography
Climate and geography shapes the people of a region. Before you even begin planning your business, determine what climate and/or geography it would perform best in. For example, an outdoor sports store that sells kayaks and skis probably wouldn’t do well in a hot, desert city.
By using this information, you will be able to make inferences about whether or not a population will be interested in your product or service. You could also use it to tailor your business to your market’s preferences and needs. All of this information can be found online through a simple internet search.
Do you conduct demographic research and if yes, how?
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