Are you about starting a market research company? If YES, here is a complete sample market research firm business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a market research company. We also took it further by analyzing and drafting a sample market research firm marketing plan template backed up by actionable guerrilla marketing ideas for market research company businesses. So let’s proceed to the business planning section.
Why Start a Market Research Firm?
If you are research inclined and you are looking for a research based consulting business to start, then one of your options is to start a market research business. The truth is that this industry is highly profitable because every business would want to increase sales; and as such, your level of profitability is dependent on your ability to come up with workable solutions to marketing challenges.
If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your products amongst others.
The truth is that it is one thing to have a fantastic idea cum business plan, it is entirely another thing for the business plan to translate to profits, which is why it is important to assemble a team of dedicated workers if you want to be successful with your marketing research business.
Below is a sample marketing research company business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Market Research Firm Business Plan Template
- Industry Overview
The marketing research industry is made up of organizations that systematically gather, record, tabulate and present marketing and public opinion data. Examples of industry services include political polling, sampling and statistical services, broadcast media rating services and market analysis services. It is important to state that companies that conduct experimental or scientific research in fields such as economics or engineering are not included in this industry.
If you keep a close watch of happening in the Market Research industry, you will notice that the industry has experienced slow growth over the past five years. As corporate profit began to rise, businesses emerged from their cost-conscious slump and began to develop new products and increase investment.
This alone, however, was not enough to jolt the industry back into growth. Instead, gains in research and development (R&D) expenditure prompted renewed industry growth. Major advertising agencies have also increasingly acquired market research companies to pursue value-added services in this complementary industry. Furthermore, the industry has observed the rise of do-it-yourself market research through increased non- employer activity.
The Market Research industry is indeed a very massive industry in Germany, United Kingdom, Switzerland, China, Japan, India and the United States of America. Statistics have it that in the United States of America, the industry is worth $20bn, with an estimated growth rate of 1.3 percent.
There are about 43,235 registered and licensed market research businesses in the United States and they are responsible for directly employing about 137,732 people. Nielsen is the leader in this industry and the company can boast of having the lion share of the available market in the United States.
A recent report published by IBISWorld shows that the market research industry tends to have a higher concentration in the West and Mid-Atlantic regions. Many market research companies locate themselves in proximity to the headquarters of major clients.
For example, media and advertising agencies both follow similar geographic distribution patterns. IBISWorld also estimates that the West region accounts for an estimated 22.5 percent of total establishments. California has a dominant presence in the region, accounting for 18.2 percent of total industry establishments.
California’s demand for market research is due to the large number media and advertising companies located in the state. Media and advertising companies are among the largest business segments for market research and are expected to continue to be within the next five years.
Over and above, starting a marketing research company is one good business to start if you have the expertise and capacity to reach out to your target market and of course you know how to produce results for your clients.
Market Research Firm Business Plan – Executive Summary
Sam Freetown® Marketing Research Company, LLP is a licensed marketing research company that will be located in the heart of Nassau – Suffolk, New York. We have been able to acquire a standard facility that is highly suitable for the kind of marketing research business we want to operate.
Sam Freetown® Marketing Research Company, LLP is in the marketing research industry to provide several services to clients in different sectors of the economy. We will render services such as broadcast media rating, market analysis or research, opinion research, political opinion polling, public opinion polling and statistical sampling et al for our clients.
We are geared towards providing our clients with cost savings, accelerated marketing development timelines and result oriented service offerings. We are well trained and equipped to service the market segments that require the services we will be offering.
We are in the marketing research line of business to deliver result oriented research services to all those who will patronize our services. We will also ensure that when carrying out our duty, we will comply with the laws and regulations in Nassau – Suffolk.
At Sam Freetown® Marketing Research Company, LLP, our clients’ overall best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hire certified marketing researchers who are well experienced and passionate in helping our clients achieve their business goals within record time.
Sam Freetown® Marketing Research Company, LLP will at all times demonstrate her commitment to sustainability, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ needs precisely and completely.
Sam Freetown® Marketing Research Company, LLP is a family business that is owned and managed by Sam Freetown and his immediate family members. Sam Freetown is going to be the Chief Researcher of the organization. He is a qualified and well trained Market Researcher with over 10 years’ experience working for some of the leading brands in the marketing research industry in the United States of America.
- Our Services Offering
Our intention of starting our marketing research company is to become one of the leading brands in the industry and of course to also make profits and we will do all that is permitted by the law in the US to achieve our aim and business goal.
These are the marketing research services that Sam Freetown® Marketing Research Company, LLP will be offering;
- Broadcast media rating
- Marketing analysis or research
- Opinion research
- Political opinion polling
- Public opinion polling
- Statistical sampling
- Other marketing related research services
Our Vision Statement
Our vision is to establish a standard marketing research company whose services and brand will not only be accepted in the United States of America, but also in other parts of the world.
- Our Mission Statement
Our mission is to provide result oriented marketing research services and other related services that will assist businesses, individuals and non-profit organizations in promoting their brands and reaching out to a wide range of potential customers all over the globe. We want to build a marketing research company that can favorably compete with other leading brands in the marketing research industry.
- Our Business Structure
Sam Freetown® Marketing Research Company, LLP is a business that will be built on a solid foundation. From the outset, we have decided to recruit only qualified professionals to man various job positions in our organization. We are quite aware of the rules and regulations governing the marketing research industry which is why we decided to recruit only qualified employees as foundation staff of the organization.
We hope to leverage on their expertise to build our marketing research business brand to be well accepted in Nassau – Suffolk – New York. When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Researcher/Chief Executive Officer
- Marketing Research Consultant
- Office Administrator
- Marketing Executives
- Client Service Executive
Roles and Responsibilities
Chief Researcher/Chief Executive Officer:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Marketing Research Consultant
- Responsible for conducting market research by phone, via electronic means, by mail, face-to-face market research (including focus groups)
- Responsible for handling broadcast media rating
- Responsible for handling marketing analysis or research
- Accountable for handling opinion research, political opinion polling and public opinion polling
- Handles statistical sampling
- Keeps up with the latest marketing research journals
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for psychologists, social workers and marriage counselors
- Regularly hold meetings with key stakeholders to review the effectiveness of the organizations’ Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Defines job positions for recruitment and managing interviewing process.
- Carries out induction for new team members.
- In charge of training, evaluation and assessment of employees.
- Responsible for arranging travel, meetings and appointments.
- Oversees the smooth running of the daily activities for the organization.
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents the organization in strategic meetings
- Helps increase sales and growth for the organization
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies.
- Responsible for administering payrolls.
- Ensures compliance with taxation legislation.
- Handles all financial transactions for the organization.
- Serves as internal auditor for the organization.
Client Service Executive
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the principal partners in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ service, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives parcels/documents for the organization.
Market Research Firm Business Plan – SWOT Analysis
Sam Freetown® Marketing Research Company, LLP is set to become one of the leading marketing research companies in Nassau – Suffolk, New York which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ as it relates to our business. We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation.
Even though our Chief Researcher (owner) has robust experience in the marketing research industry, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct a detailed SWOT analysis.
This is the summary of the SWOT analysis that was conducted for Sam Freetown® Marketing Research Company, LLP;
Our core strength lies in our ability to quickly adopt new technology, have access to skilled and flexible workforce and provision of relevant results. Also, we have a team of experts in the industry, a team with excellent qualifications and experience in the market research industry.
Asides from the synergy that exists in our carefully selected team members and our strong online presence, Sam Freetown® Marketing Research Company, LLP is well positioned in a community with the right demography and we know we will attract loads of corporate and individual clients from the first day we open our doors for business.
As a new market research company in Nassau – Suffolk – New York, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the fast – growing contract research organizations industry; that is perhaps our major weakness.
The opportunities that are available to market research companies are unlimited considering the fact that the marketing research industry is a dynamic industry. Every organization that has products and services to sell would always look for marketing strategies that will help them reach out to their target market hence the need for the services of marketing research companies.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a marketing research company in same location where our target market exists and who may want to adopt same business model like us.
Market Research Firm Business Plan – MARKET ANALYSIS
- Market Trends
The growing trend which makes it easier for people to spend more time on the internet especially on social media networking sites is a major boost in the revenue generated by marketing research companies. It is not uncommon to find players in this industry generating an increasing amount of advertising revenue per user by developing targeted advertising platforms and tools to measure the effectiveness of advertising and marketing.
This has indeed changed the way organizations interact with customers, as a substantial percentage of consumer interactions and profiling are now being carried out over online and social media platforms.
Another common trend in the marketing research industry is that most marketing research firms no longer settle for clients within the location where their physical office is located but also from other parts of the world. The truth is that with the advent of the internet, it is now easier for a marketing research company to work for clients in any part of the world.
A marketing research company can be located in the United States of America and have their biggest client in United Arab Emirates or in China, many thanks to the power of the internet which has brought the world closer to us. Lastly, the marketing research industry will continue to evolve due to the advancement of computer technology and software applications designs.
- Our Target Market
Sam Freetown® Marketing Research Company, LLP is in business to service a wide range of customers in Nassau – Suffolk – New York and all across the United States of America. We will ensure that we target both private companies and government organizations.
The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the marketing research industry in the United States. Our staff are well – trained to effectively service our customers and give them value for their monies.
In view of that, we have created strategies that will enable us reach out to various corporate organizations who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that we meet and surpass the expectations of our clients.
Below is a list of the people and organizations that we will specifically market our services to;
- Banks, Insurance Companies and other related Financial Institutions
- Blue Chips Companies
- Corporate Organizations
- Manufacturers and Distributors
- Real Estate Owners, Developers, and Contractors
- Research and Development Companies
- The Government (Public Sector)
- Schools (High Schools, Colleges and Universities)
- Celebrities, Politicians, Public Figures and Public Speakers
- Sport Organizations
- Religious Organizations
- Political Parties
- Television Stations
- Printing Press (Publishing Houses) and Authors
- Branding and Advertising agencies
- Aspiring celebrities
- Entrepreneurs and Start – Ups
Our Competitive Advantage
Aside from the competition that exists amongst various marketing research companies, they also compete against branding companies and social media marketing companies that are also into marketing research. To be highly competitive in the marketing research industry means that you should be able to provide ground breaking research at all times.
Sam Freetown® Marketing Research Company, LLP is coming into the market well prepared to favorably compete in the industry. We will ensure our pricing policy is appropriate, plus the fact that we have a good reputation and also economies of scale.
Our staff are well groomed in all aspects of marketing research and all our employees are trained to provide customized customer service to all our clients. Our services will be carried out by highly trained professionals who know what it takes to give our highly esteemed customers value for their money.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
Market Research Firm Business Plan – SALES AND MARKETING STRATEGY
- Sources of Income
Sam Freetown® Marketing Research Company, LLP will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry. Below are the sources we intend exploring to generate income for Sam Freetown® Marketing Research Company, LLP;
- Broadcast media rating
- Marketing analysis or research
- Opinion research
- Political opinion polling
- Public opinion polling
- Statistical sampling
- Other marketing related research service
One thing is certain, there would always be corporate organization, political parties and individual who would need the services of marketing research firms to help them increase sales or promote their brands. We are well positioned to take on the available market in the marketing research industry and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation.
We have been able to critically examine the marketing research space, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Nassau – Suffolk – New York.
Below are the sales projections for Sam Freetown® Marketing Research Company, LLP.
- First Year: $200,000
- Second Year: $500,000
- Third Year: $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing and sales strategy adopted by Sam Freetown® Marketing Research Company, LLP will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer all-round marketing research services at affordable prices compared to what is obtainable in and around Nassau – Suffolk – New York.
All our employees will be well trained and equipped to provide excellent marketing research services. We know that if we are consistent with offering result oriented marketing research and excellent customer service, we will increase the number of our customers by more than 25 percent in the first year and then more than 40 percent subsequently.
Before choosing a location for our marketing research company, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for organizations in Nassau – Suffolk – New York and of course in other cities all across the United States of America.
We hired experts who have good understanding of the marketing research industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in and around Nassau – Suffolk – New York.
In summary, Sam Freetown® Marketing Research Company, LLP will adopt the following sales and marketing approach to win customers over;
- Introduce our marketing research company by sending introductory letters alongside our brochure to individuals, corporate organizations and other key stake holders all across the United States of America.
- Promptness in bidding for marketing research contracts from the government and other cooperate organizations.
- Advertise our business in relevant business magazines, newspapers, TV and radio stations.
- List our business on yellow pages’ ads (local directories).
- Attend relevant international and local expos, seminars, and business fairs et al.
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent and result oriented marketing research services.
- Leverage on the internet to promote our business.
- Engage in direct marketing approach.
- Encourage word of mouth marketing from loyal and satisfied clients.
Market Research Firm Business Plan – Publicity and Advertising Strategy
We are in the marketing research business to become one of the market leaders and also to maximize profits, hence we are going to explore all available means to promote our company.
Sam Freetown® Marketing Research Company, LLP has a long – term plan of working for clients all across the United States and other parts of the world which is why we will deliberately build our brand to be well accepted in Nassau – Suffolk – New York before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise Sam Freetown® Marketing Research Company, LLP;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community research programs
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our billboards in strategic locations all around Nassau – Suffolk – New York
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.
Our Pricing Strategy
Generally, research services are billed on the results produced and flat fees on a weekly or monthly basis. As a result of this, Sam Freetown® Marketing Research Company, LLP will charge our clients flat fees except for few occasions where there will be need for us to charge special clients on hourly basis.
At Sam Freetown® Marketing Research Company, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our clients at regular intervals.
- Payment Options
The payment policy adopted by Sam Freetown® Marketing Research Company, LLP is all inclusive because we are quite aware that different customers prefer different payment options as it suits them, but at the same time we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Sam Freetown® Marketing Research Company, LLP will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
- Startup Expenditure (Budget)
If you are looking towards starting a marketing research company, then you should be ready to ensure that you raise enough capital to cover some of the basic expenditure that you are going to incur. You would need money to secure a standard facility, acquire relevant software apps, pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them.
The items listed below are the basics that we would need when starting our marketing research company in the United States;
- The total fee for registering the Business in the United States – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses for the grand opening of Sam Freetown® Marketing Research Company, LLP in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- Cost for hiring Business Consultant – $2,500.
- Cost for computer software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, and QuickBooks Pro et al) – $7,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
- Cost for payment of rent for 12 months at $1.76 per square feet in the total amount of – $105,600.
- Cost for facility remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $500,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al) – $4,000.
- The cost of launching a website – $700
- Miscellaneous – $10,000
We would need an estimate of two hundred thousand dollars ($200,000) to successfully set up our marketing research business in Nassau – Suffolk – New York.
Generating Startup Capital for Sam Freetown® Marketing Research Company, LLP.
Sam Freetown® Marketing Research Company, LLP is a family registered marketing research business that will be owned and managed by Sam Freetown and his immediate family members. They are the financiers of the business, but may likely welcome partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $50,000 (Personal savings $30,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
Market Research Firm Business Plan – Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Sam Freetown® Marketing Research Company, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our marketing research work a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Sam Freetown® Marketing Research Company, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organizations’ corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry, and they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Application for loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress
- Compilation of our list of marketing research areas that will be our strong emphasis: Completed
- Establishing business relationship with corporate organizations, NGOs and other key stakeholders in the United States of America: In Progress.