Reply #2: Another suggestion for you...

[bliss_eternal]

When I was researching a business idea in my area, this is what I did:

1. Checked the yellow pages for similar businesses, took down their information.

2. Checked the yellow pages for businesses RELATED to that business, for example--let's say you want to be a wedding dj. Take down the names and numbers of wedding and party planners. Also make note of restaurants and hotels that offer their facilities for wedding receptions, or those that even cater. Later, you'll call those places and ask them for the name of their "special event coordinator."

3. Then I got a pad or notebook with paper and a pen and started making calls.

You're right in that some people aren't all that friendly or welcoming when they think you're going to be a competitor, I was worried about the same thing. Know what I did? I pretended to be a potential client. Yep. I picked up the phone and pretended to be someone seeking their services to find out what they had to offer. Most of the time, people were open to telling me what I needed to know, you just have to know how to phrase it so you really sound like a customer and not a potential competitor.

So, in the case of wanting to be a wedding dj--Call some of the other wedding dj's ask them the following:
1. how far in advance do they generally book?
2. What kind of deposit do they require for a booking (10%, etc.)?
3. Do they offer any extras (games, dancers, lights, karaoke, etc.?

Go back to your list and call those businesses related to your business. In the case of the example of wedding dj's, call the restaurant special events coordinators. Find out how many dj's they presently offer referrals to? Ask them if in their opinion the area/market could support another vendor (you)? Find out if there's anything the other dj's aren't offering that maybe clients are clamoring for (a niche--or way you may be able to make your business special and stand out from the rest of the competition)?

The general idea is checking the going rate and to get a sense of how busy the other businesses (like the one you want to start) are at present. This will help you to determine if your area could support another such business.

Don't be discouraged if you open the phone book (or check the internet)and there are others doing what you want to do. If the market can support them, it's likely it can support you too, depending on the type of business you are considering and how many others are active.

Sometimes when making calls, some will be tight lipped and not want to quote you any information over the phone. They want to see you in person so they can give you their pitch. In such cases, you may not be able to get any information from them.

Other ways to research your local market, without giving up your ideas or revealing yourself as a competitor--
1. Check the internet. Many businesses have websites these days, and some even offer their prices on their websites. In such cases, you can sometimes e-mail them and make the same sort of queries as I spoke of above.

2. Check the internet for other businesses like the one you are considering.
3. Check the internet for professional associations for the business you are considering. Let's use the wedding dj as an example again...find out the dj associations. Give them a call, let them know that you are interested in doing some market research and find out who the best person to talk to would be. Once you find out, ask that person how many members are in your area? They may be able to tell you how busy those members are, maybe not... but a pro. association could give you information that a competitor may not want to offer.

Hmmmm... I can't think of anything else. I hope this is helpful. If I brought up anything that wasn't clear, don't hesitate to ask, and I'll try to clarify. If I can't answer, I may be able to refer you to a decent book or resource.

Good luck and keep us posted!

bliss :)