08/29/2013
Are you thinking of starting a new business? Have you owned an existing business for many years? We are faced with making business judgments and decisions every day. We would like to believe that our decisions are made based upon our best reasonable and logical methods.
The two major areas of reasoning are: Analytical and Inductive. In business you must train yourself to become proficient in the application of the former. The latter is important and will be useful, but Analytical Reasoning based upon factual research, must be the main driver of your business decisions.
Inductive Reasoning draws upon your life experiences: education, hobbies, books, entertainment, interests, politics, travels, languages, friends, family, work place, married or single... all have an impact upon your attitudes, beliefs, and habits.
While your life experiences will provide you with that subconscious “gut-feel” that may help you to recognize possible opportunities, Intuition alone, can and will lead you astray with its accompanied euphoria, wherein your idea, concept, or vision just “feels” right. Your Rule #1 must be Check it out. Research and Analysis may confirm your intuitive reasoning – getting the facts will save you much time and money.
Analytical reasoning is based upon facts, not opinions. It is sometimes difficult to separate facts from opinions, when you are dealing with people’s thoughts, feelings and their genuine desire to be of assistance. It is part of the human condition that most of us are reluctant to respond to a question with, “I don’t know.” When we do not have factual answers, we try to divine an answer and will rationalize the “best” answer to please, rooted in our opinion or Inductive Reasoning.
You may have to probe deeply in order to arrive at the real answers. Beware of responses that begin with, “Well, I think...” Be frank. Just say that you do not want an opinion. You need the facts. Getting an “I don’t know, but I will find out and let you know.” is much better than guesswork. At least you will be aware of where your information deficiencies exist, and where you need to apply your emphasis in order to make correct judgments and decisions based upon facts, not opinions or consensus.
Research and Analysis are your primary tools for achieving success whatever your field of business. Tabulations and evaluation of the results of your efforts will contribute positively to your accurate judgments during your decision-making processes.
Quantitative research describes demographic information based upon numbers, percentages, averages, medians, statistics, tabulations, census data, zip-codes, populations, expenses, income, age-groups, consumer data, product costs & sales, market segments, audiences, readership, viewers, investments and returns, ratios, decimals, metrics, budgeting – and all finite data.
Your Business Planning must incorporate thoroughly researched quantitative data upon which to budget your start-up costs, and operating expenses. Hard data must be the basis for a minimum of two to five years of initial projections of your future income, expenses, and setting goals that will lead to break-even status and profits. Completing your professionally developed Business Plan based upon diligent “homework” will go a long ways to convince lenders as you apply for your vital business loans.
Qualitative research involves lifestyle information. attitudes, perceptions, ethnic origins, languages, cultures, likes & dislikes, feelings, emotions, tastes, behavior, customs, traditions, preferences, reactions, personality, character, and additional Psychographic information.
This data will enable your business to reach buyers of virtually all types of products and services, from Apples to Zircons. Instead of shot-gunning your promotional efforts, you will be able to pin down your best buyers: Where they live, What newspapers and magazines they read, whether horizontal or vertical media are best, their Internet preferences, purchases and habits, direct mail responses, radio, television and cable stations they listen to and watch, fax and E-mail addresses, and more.
You will have developed the tools to create a media mix that will be cost-effective and efficient. This subject is treated in greater detail in Chapter- VII, Advertising & Promotion.
As Quantitative data is indispensible to your professional Business Plan, Qualitative information is equally indispensible to forming the strategies and tactics that will become the foundation of your Marketing Plan. Your Business Plan comprises the data basis for your projections and objectives. Your Marketing Plan will be the road-map that guides your business efforts toward attaining your goals... and success.
