Whether you want to set up a new business or simply want to update yourself about an industry, it is imperative that you research the firms in that industry to understand past trends, future prospects and the prevalent norms.Our last post discussed social research, industry research is something else you do need to have a look at.

Here’s a step by step guide to understanding any industry.
1.    Identify the Industry:
This may sound very obvious, but before researching an industry it is important to know exactly which industry you are searching for. This can get a little complicated owing to the overlap between industries in modern times. For instance, banks overlap with financial firms, the computers industry overlaps with electronics, and gaming overlaps with computers and so on. First, define which industry you want to find and use keywords specific to that industry when searching industry databases.

2.    Use Surveys and Reports for Industry Statistics:
There are multiple resources for industry research available on the internet alone. In addition, there are various publications of industry surveys and statistics purely for the purpose of research. For instance, Hoover’s Online publishes profiles of more than 200 different industries. Standard & Poor’s Industry Surveys are detailed surveys of more than 50 US industries.

3.    Search for News Reports and Magazine Articles About the Industry:
These are excellent resources for gaining a deeper understanding of the industry and the trends related to it. While statistics can be misinterpreted, or not give you the true picture, articles and expert opinions will generally show you the industry as it is. Plus, hearing lots of different opinions can help you decide whether or not to set up a business in the industry, and your chances of success.

4.    Visit Industry Websites:
Websites of individual firms as well as searchable online databases and there websites belonging to the industry as a whole can be an excellent resource for information about the industry. For instance, IndustryLink.com has lots of links to industry websites. Business.com can also help you search and identify helpful industry websites.

5.    Learn About Leading Firms in the Industry:
Identify the leaders in the industry and study their financial position, their customer base, market share etc. to understand fully exactly what it is that makes them successful, and if you are thinking of setting up a business, this would help you see exactly what kind of competition you are up against.

6.    Use Business-to-Business Marketplaces:
Finally, use this one great resource that has recently come into being. B2B market places are basically online business communities that keep their members and visitors updated on all aspects of their industry, with the purpose of facilitating e-commerce. These will usually give you basic, understandable and relevant information about the industry.

So as you can tell, industry research is a must for anyone contemplating a serious move towards owning their own business.