Information Brokers Can Cut the Risk in Decisions
If you think that you have all the information you need to make a critical business decision next week, read no further.
But if you feel that you could make much smarter decisions if you had more information, read on.
Most small-business owners know that there are information resources available beyond the local library but have no idea about how to tap them or think that they can’t afford them. But knowing how to obtain affordable, strategic information is essential to your financial success.
Big businesses have the financial resources to absorb a marketing mistake, but small businesses do not have that luxury, according to Seena Sharp, owner of Sharp Information Research in Hermosa Beach. That’s why current, accurate information can be one of the biggest bargains available to small-business owners.
“One of the great things about information is that it is just as available to small businesses as large ones,” said Sharp, who specializes in ferreting out information from direct and published sources rather than from computer databases.
Sharp has collected information on everything from the market potential for upscale furniture to the potential success of a “mystery shopper” quality-control service. Each week she reads about 15 publications, including AdWeek and Newsweek. However, Sharp said she gets the highest-quality information by calling on experts directly, asking them for their opinions and research data.
“For the man who bought the upscale furniture store, I found three current market surveys--all free,” said Sharp. “Most information is free and out there. The trick is to access it.”
Andrew Garvin, president of FIND/SVP, a Manhattan-based information retrieval service, agrees that when money is scarce, small-business owners don’t like to buy information, but they should consider it a wise investment.
“Almost any question you have can be answered in its simplest form for under $500,” said Garvin, whose publicly held company posted $14.3 million in revenue last year.
Garvin’s company serves both large and small clients who can either pay by the question or pay annual retainers ranging from $2,000 to $5,000.
His 21-year-old business is based on a similar service he discovered while working as a journalist in Paris. Today, his staff of 88 researchers answer about 6,000 questions a month as well as completing more in-depth research reports for clients in a variety of businesses.
Cookie Lewis, founder of Infomania in Sherman Oaks, is a law librarian who branched out four years ago to serve as an information broker for all kinds of businesses. She said the right information can reduce the risks of a new venture.
“It doesn’t make sense for a small-business owner to put their life savings into something that a big company has already begun marketing,” said Lewis.
One of her most challenging assignments was to compile all the environmental regulations affecting 12 communities for a company that was acquiring a firm that did business in those locations. “I had two days to complete the assignment,” said Lewis. “I almost had a nervous breakdown, but I did it.”
She said information brokers, whose fees range from $60 to $150 an hour plus expenses, can tap into thousands of computerized databases, both government and private. One of the better-known databases is Nexis, which provides full-text business information gleaned from more than 150 U.S. and international publications.
VuText and DataTimes specialize in data published in small city newspapers along the West Coast. StateNet monitors legislative developments in all 50 states and Legislate tracks what’s going on in Congress. Lexis and Westlaw serve the legal community.
Finding competent information brokers can be a bit of a challenge in smaller cities across the country. But ask your local reference librarian, Chamber of Commerce director or other business owners for suggestions. Before hiring an information broker, check his or her references and find out whether they charge by the hour or by the project. Next, find out whether they charge extra for computer time, how they plan to send you the information and whether they offer rush and non-rush rates.
For a comprehensive view of the industry, you can turn to the Directory of Fee-Based Information Services, published by Burwell Enterprises in Houston. Helen Burwell, publisher, said the 1984 edition featured 334 companies and individuals. The 1990 directory reflects the enormous growth in the information industry--it lists more than 800 entries from the United States and abroad.
The directory is available for $49.50, plus $3 for shipping and handling from Burwell Enterprises, 3724 F.M. 1960 West, Suite 214, Houston, Tex., 77068. Her company also publishes the Information Broker newsletter. Six issues are available by subscription for $35.
Cookie Lewis’ Infomania is located at 14141 Dickens St., Suite 113, Sherman Oaks, Calif. 91423. Telephone (818) 788-8528.
The address for FIND/SVP is 625 Avenue of the Americas, New York, N.Y. 10011. Phone (212) 645-4500.
Video Brochures Can Aid Marketing
If all this information helps you fashion a new marketing strategy for your business, you may want to consider investing in a video brochure. A recent study by the University of Philadelphia’s Wharton School of Business found that video brochures increase information retention by 50% and speed up buying decisions by 72%, compared to print advertising. Mass duplication of videotapes can also make them extremely affordable--usually less than $5 each.
And a well-packaged videotape is less likely to be thrown away than a paper brochure, according to Jeff Goddard, president of the Video Agency in Hollywood. Goddard, who produces $5,000 videos for small franchisers and six-figure videos for major companies including Carl’s Jr. and Baskin-Robbins, says video brochures are excellent for targeting specific groups of customers.
In recent months, Goddard has produced real estate videos that have sold millions of dollars worth of California properties to Japanese investors. He also produced a multicultural video extolling the virtues of Baskin-Robbins ice cream for potential investors around the world.
“The most exciting thing about video is that it blends the best qualities of all the other marketing techniques,” said Lawrence Kohn, president of Kohn Communications, a Century City-based marketing firm. “It has the impact of television, the targetability of direct mail and the content of a brochure.”
Kohn, who refers clients to Goddard, said he strongly advises his clients to consider video as an option. Video marketing advocates say many purchasing decisions are made with the unconscious mind. A videotape is effective because it appeals to both the logical and emotional sides of the brain. Goddard and others predict that more small-business owners will consider using electronic brochures because a simple one can be produced for about the same price as a full-color printed brochure.
