Doing your homework is an ongoing priority for those who work at home.

Recently, a home-based business owner expressed the frustration, "Everyone tells me to do my market research, but no one tells me how. There's so much information out there, but where do I start? What is important?"

Since we are truly an "information society," there's a vast array of resources available on just about any topic. For home-based business owners, the following materials just show the tip of the iceberg. Unless specified, most are available in the reference section of your local library or on the Internet.

General Home-Based Business Information

• Working From Home by Paul and Sarah Edwards is a comprehensive book covering the basics for setting up a home-based business. The topics included range from office equipment to business insurance. The Edwardses, probably the most notable home-based business experts in the nation, are also the authors of Home Based Business for Dummies, Getting Business to Come to You, Best Home Businesses for the 21st Century, Making Money with Your Computer at Home, Making Money in Cyberspace, Teaming Up, Home Based Business You Can Buy and Secrets of Self Employment. In addition, their book Finding Your Perfect Work is an excellent guide for individuals trying determine the type of business right for their own situation.
  
  
• Gale Research produces the Small Business Sourcebook, which lists sources of information about hundreds of businesses. For example, the listing for "Gift Basket Service" identifies sources of articles and books on the subject as well as contact information for trade associations, trade periodicals and suppliers.
  
  
• Entrepreneur Magazine publishes over 200 Entrepreneur's Start-up Guides for specific businesses. They are not just your generic "How to Start a Home-Based Business" references, but instead are separate manuals for specific businesses (e.g., starting a desktop publishing business). These guides include detailed information on topics such as legal issues pertinent to each business, equipment needed to start each business, marketing tips and earning potential. Though not usually found in local libraries, in Kansas City you can access these reference guides at the Business Information Center (Small Business Administration, 323 W. Eighth Street, Fifth Floor, Kansas City, MO; 816-374-6675).
  
  
• The Edward Lowe Foundation (www.lowe.org ) maintains a searchable database of articles, book chapters and SBA publications dealing with a wide variety of small business issues.

Industry Information

• Standard and Poor's Industry Survey provides industry surveys that contain trends, comparative company analyses and forecasts.
  
  
• US Industry & Trade Outlook contains hundreds of charts and tables, industry reviews, trends and forecasts divided by 50 major industry groups. Each group may contain more specific information about products and services in that category.
  
  
• The Gale Research Encyclopedia of Associations, a guide to thousands of national and international organizations, contains contact information that can provide the link to industry specific information.
  
  
• The Thomas Register of Manufacturing is a widely used national listing of manufacturing firms (www.thomasnet.com ).
  
  
• Following are some additional Web sites housing industry information:
  www.virtualpet.com/industry/howto/search.htm
  www.learnwebskills.com/company/
  sbdcnet.org/industry.php
  www.missouribusiness.net/library/industry.asp

Demographic Information

• The American Marketplace: Demographics and Spending Patterns (New Strategists) provides statistics about different types of American consumers, including education, health, housing and spending trends.
  
  
• Best Customers: Demographics of Consumer Demand (New Strategists) includes simple graphs and charts describing who the best customers are for hundreds of different products.
  
  
• Household Spending: Who Spends How Much on What (New Strategists) gives household spending averages based on Bureau of Labor Statistics Consumer Expenditure Surveys, including average spending by age and gender.
  
  
• New Strategists also publishes books on specific markets: The Baby Boom, Americans 55 and Older and Generation X.
  
  
• Demographics USA County Edition/Zip Edition (TradeDimensions) and The Sourcebook of ZIP Code Demographics specify demographic information such as race, income and expenditures by ZIP code.
  
  
• Cole's City Directory and Polk's City Directory both offer information about and listings for individual residents and businesses in specific cities or counties.
  

Financial Information

• The Robert Morris Associates (RMA) Annual Statement Studies contain financial ratios derived from statements of commercial bank borrowers and prospects.
  
  
• Financial Studies of the Small Business (Financial Research Associates) are similar to the RMA resources, but they provide ratio information compiled from surveys of small and micro businesses. These ratios can be helpful in establishing financial guidelines for your own business.
  

With patience and persistence, you can find the very specific information tools you need to build a competitive, successful business in your home.

Authored by: Barbara Cunningham, Business Specialist with University of Missouri Extension and Missouri Small Business Development Centers.
Source: Home-Based Business