Methods of conducting market research are varied. What is the best way, frankly, is usually determined by the budget a business has to work with.

Direct mail research for instance is considered to be highly effective, but it is a very expensive method. The same is true with telephone surveys. Several telephone operators are required, in addition to telephones, equipment, an office space, and a database of people to call. Add to that the frustration factor of people confusing market researchers with telephone sales people and hanging up on them and it can be a chilling experience for the ego and the budget.

Many companies have discovered that the most effective way for them to conduct market research is by posting researchers in areas with large numbers of consumers. Some do it at trade shows and exhibit halls at county fairs. Others use the larger shopping malls. Some even use busy grocery stores and discount stores. They will set up a table, have a display of the free giveaway items to encourage people to engage in the research, and the product they are sampling. They will also have a supply of forms.

Many times with research in foods they will have a blind taste test, comparing two different types of snack foods or two types of soft drinks in this manner is popular. In addition to getting willing subjects at a low price – only the cost of the giveaway item – the market research doubles as an advertising and promotional vehicle for the company. If a banner with a company name or logo is prominently display, participating in the research can become the “in” thing to do that day at the mall or in the supermarket.

Another bonus is that the table can also have a sign up sheet for more information on the product if it becomes available, creating an instant mailing list for the new product.

Working for yourself is the American dream. Most employees have dreamed of being their own boss, and it has many benefits, but there are a few disadvantages to it as well.

Advantages of working for yourself are that you are responsible to yourself. Your destiny is in your own hands, as well as your financial future. You determine how much work you do, when you go to work, when you quit for the day, when you take a vacation, how long the lunch break will be, and if you really want to put up with a grouchy customer. The business is in your hands and you decide. Instead of griping about the bad advertising campaign that corporate came up with, you decide on an advertising campaign yourself.

Disadvantages of working for yourself are really the same as the advantages. You decide when you go to work, when you quit for the day, when you take a vacation, and how much you will make. All the while knowing, if you are a small business, that if you are gone the business is either not open, or if you have employees, that they are not being supervised by the person who cares the most about the business—you.

You have to make all of the decisions regarding health insurance, benefits, marketing, bookkeeping, management, and customer service. Owning and operating a business is a tremendous responsibility and not everyone is ready for or capable of handing the stress or the commitment.

Still, if you are one of those unique individuals with the spirit of an entrepreneur, then being in business for yourself is the only way to live. Many people in fact simply can’t imagine another way to live. Some people in this world are sheep, following others blindly.

Others are shepherds, preferring to lead. Pathfinders who make their own way. If you are an entrepreneur, you are one of the shepherds and will only be happy in business for yourself.

One of the best ways to evaluate a new business idea is to see if it has been done anywhere else in the world, and if so, was it done with success. There is an old saying that there is no such thing as a new idea, only recycled ideas in new packages.

Some people evaluate a business idea by telling their friends and relatives. The problem with this approach is that your friends and relatives may not be in business. And they may not want to offend you by telling you our idea is a bad idea if they think it is. So try something impartial.

Step one is to discover the existence of a similar business is an internet search using all of the major search engines, and using variations on your particular business.

As an example, let’s say you have an idea for a variation on speed dating, but you want it to be oriented towards business people and not couples looking for dates. Business people are always looking for contacts, and are always networking, meeting new people.

An Internet search under headings like speed meeting people, speed business meeting, speed networking, speed contacts, speed business contacts, quick business contacts, fast networking, quick networking, and other combinations will show you if something is available.

In this case, the idea of adapting speed dating to business contacts does exist in some cities, often with great success and is most commonly called speed networking. This tells you that your idea works some places.

Next, take an informal survey. Call several business people out of the blue. Find their names in the Chamber of Commerce membership guide, or your business journal Book of Lists. Ask them for a minute of time and explain the concept. See if a majority have an interest. If at least half say they do have an interest, you’ve got a winner.

Every small business owner needs to have a basic understanding of taxes, both state and federal, as well as any local taxes that may apply.

While everyone pays taxes, a small business owner has as a primary goal paying as few taxes as possible. For this reason small business owners need to save receipts for every purchase made. Keep track of all expenses, including the mileage you put on your car for business related trips. It all adds up, and with enough deductions, you reduce your tax bill.

Also, always pay business bills by check or by credit card in order to have a written record of the expenditure. If possible, avoid keeping petty cash in the office. If you must use petty cash, always get a receipt.

Some businesses do some business with others through bartering. This can be great for cash flow, but treat the barter like cash for tax purposes. Trade invoices with the other business and you’ll both come out ahead at tax time.

When it comes close to tax time or when you are planning the new year’s goals, it is always a good idea to look at possible capital expenses. Would you be better off buying a new vehicle, new piece of heavy equipment, or a new computer before the end of the year or after the end of the year? Or would you be better off leasing. Taxes bring up permanent questions such as these, with only temporary answers because the answers change from year to year as the tax code changes.

For this reason having a good tax preparer available as a hired gun is always a good idea. This can be a CPA, or a good non-certified accountant whom you trust. Or a lawyer who specializes in taxes. Generally if you have a very small business a non certified accountant is fine, and the larger your business gets, the more likely you are to need a CPA.

Creating a financial statement for a small business isn’t difficult, but it does require accuracy and a flair for numbers. What is a financial statement? It is a document that accurately details all financial data of your business. This includes all income from all sources. Also all expenses, all assets and all liabilities. It is a reflection of your financial house, with the result being a method of keeping your house in order.

The financial statement will include all assets. This means all cash on hand, cash in the bank checking account, savings, account, petty cash drawer, etc. Also investments such as the value of equity stocks, bonds, treasury notes, mutual funds, insurance policies, gold and precious metals, and any other investments you might have. This will even include estimated value of collectibles. Then add in assets like cars trucks and other vehicles, real estate, furniture, fixtures, jewelry, and any other physical item of value. Also include loans – money that people owe you.

In the second column you have your liabilities. Here you list money owed, including salaries of employees, outstanding loans, unpaid bills, the mortgage on the real estate, credit card balances, and any other type of liability you may have.

Naturally your hope is that the left-hand column of assets will, when added up, be greater than the right hand column of liabilities. This is the simplest form of financial statement, and one you can create yourself. This will also serve as a basis for discussion with a CPA if he is creating a more detailed financial statement for you. In other words, a place to start.

There are many good books available on creating financial statements, and a business owner can create one himself, but most prefer to leave this in the hands of a knowledgeable professional and turn the chore over to a CPA.