Research before jumping into retail
Dear Karen: I’m working on a business plan for a lingerie store but feel overwhelmed about where to get information on economic trends. Can you please help?
Answer: You’ll need to do some digging, but the research will pay off when you gain a good sense of the apparel industry and lingerie retailing. Start by joining or at least contacting some apparel industry associations. These organizations publish results of surveys they conduct and often have regular magazines or newsletters that include statistics and other information invaluable to small-business owners.
Use the contact information you find in articles and advertisements to further your research. Talk to suppliers, attend trade shows and visit some other entrepreneurs already in business.
“Speak to suppliers in the industry, but remember they are going to try to sell you something, so take what they have to say with the appropriate degree of skepticism,” said Robert Keane, who has written business plans as chief executive of VistaPrint, in Lexington, Mass. “Salespeople are often quite happy to speak about what trends they see in their industry. They can also help identify good trade shows and industry associations that can also be of help down the line.”
Attending a trade show will give you enormous insight into your new industry, how it operates, who the big players are and where the niche opportunities exist. Finally, visit some companies that cater to the same market you will but don’t sell products that will directly compete with your store. “Most small-business owners are more than willing to speak about trends in their own business -- as long as they are sure that you are not a competitor,” Keane said.
Take willing entrepreneurs to lunch and ask about sales trends, locations, what to focus on (quality, price, service) and what problems they encountered early on. “Speak to as many people as you can and see what resonates with your own ideas for the business. Most of all, remain open to learning new insights,” Keane said.
Background-check work is regulated
Dear Karen: I’d like to do background checks from home. Where do I start?
Answer: First, you’ll need to look into what licensing, training and credentials you’ll need. Privacy concerns have led to more regulation in this area, and many states require individuals doing background checks to obtain private investigator licenses.
Talk to professionals in industries that rely on background checks, such as attorneys, accountants and human resource managers, suggested author and work-at-home expert Paul Edwards. The Journal of Private Investigators has links to each state’s laws on its website (www.pimagazine.com), Edwards said.
In California, the business and professions code requires a PI license for any individual “acting for the purpose of investigating, obtaining and reporting to any employer ... information concerning the employer’s employees involving questions of integrity, honesty, breach of rules or other standards of performance of job duties.”
Once you’ve obtained the proper credentials and training, you’ll need to network with professionals and companies that do background checks, Edwards said. Small companies that do not have in-house human resources departments might also be good clients for you. Spending some time working for an agency providing this service would help you gain on-the-job experience as well as an understanding of how the industry works.
Got a question about running or starting a small enterprise? E-mail it to karen.e.klein@ latimes.com or mail it to In Box, Los Angeles Times, 202 W. 1st St., Los Angeles, CA 90012.
