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prelim.qxp6/18/200911:37 AMPage iSTART & RUN AN INTERNETRESEARCH BUSINESSGerhard W. KautzSelf-Counsel Press(a division of)International Self-Counsel Press Ltd.USA Canada

contents 2.qxp11/27/200812:40 PMPage iiiCONTENTSIntroduction1 The Internet Research Business and Youxi11. The Internet Research Business12. How Companies Find Essential Information22.1 Manufacturing industry information research needs 32.2 Service industry information research needs32.2a Investment firms42.2b Information technology companies42.2c Lawyers42.2d Engineering and architecture firms42.2e Business and trade organizations42.2f Individuals needing information42.3 Government information research needs43. Your Internet Research Business52 Choosing Your Specialization1. Why You Have to Specialize2. Assess Your Skill Set2.1 Computer skill2.2 Communication skills2.3 Investigative skills2.4 Personal skill assessment3. Assess Your Experience3.1 Work Experience3.2 Hobby and sports experience77888889910iii

contents 2.qxp11/27/200812:40 PMPage iv3.3 Educational experience4. Overall Personal Assessment5. Select Your Specialization6. Changing Your Specialization3 Your Business Model1.2.3.4.5.6.7.What Is a Business Model?The Business OpportunityWhat Is Your Market?Your Marketing ProcedureYour Sales ProcedureYour Project Work ProcedureYour Delivered Products4 Your Company Structure1.2.3.4.5.6.Why You Need a CompanyIncorporated CompanyPartnershipLimited Liability Corporation (LLC)Sole ProprietorshipRecommended Company Structure5 Pricing1.2.3.4.5.Price QuotationsOverhead Cost FactorsSalary ExpectationsBillable Time, Company Time, and Personal TimeMarkup Factors5.1 Specialization5.2 Competition5.3 Client understanding of personnel costs5.4 Profit6. Overall Pricing Approach6 Marketing1. Why You Must Market2. Define Potential ClientsivStart & run an internet research 283030313132323232353535

contents 2.qxp11/27/200812:40 PMPage v3. Identify and Select Potential Clients4. Assess Marketing Methods4.1 Slogan4.2 Business cards4.3 Word of mouth4.4 Networking4.5 Business organizations4.6 Website4.7 Trade show participation4.8 Trade show milking4.9 Media advertising4.10 Telephone soliciting4.11 Direct-postal-mail advertising4.12 Direct-email advertising5. Marketing Time Line6. The Marketing Plan7 Marketing Material1.2.3.4.Why You Need Marketing MaterialBusiness CardsBusiness StationeryWebsite4.1 Domain name4.2 Web host4.3 Website design4.4 Content4.5 Keywords4.6 Search engine listing5. Brochures6.Marketing Letters6.1 Brochure introductory letters6.2 All-inclusive marketing letters7. Client Response Form8. Unsolicited 344454545454646474848Contentsv

contents 2.qxp11/27/200812:40 PMPage vi8 Getting the Contract1. Types of Contracts1.1 Contract for a specific project1.2 General service contract1.3 Retainer contract2. Contents of Contracts3. Contract Agreements3.1 Verbal tasking3.2 Letter contract3.3 Purchase order3.4 Detailed contract4. Help the Client Close the Deal4.1 Send the client the letter contract4.2 Help the client draft the purchase order4.3 Help the client draft a detailed contract5. Written Proposal6. Interfacing with Clients9 Project Estimating1.2.3.4.5.6.7.Work Breakdown StructureTime EstimatingLabor CostsAdditional CostsContingency AllowanceBuy-in ConsiderationsPrice and Delivery Quotes10 Time Management1.2.3.4.5.6.viStart & run an internet research businessWhy You Must Manage Your TimeEstablish Your Work Area and Work RoutineProject ManagementGathering and Storing InformationMultitaskingRecording 6767686871717274757576

contents 2.qxp11/27/200812:40 PMPage vii11 Doing the Work1.2.3.4.5.6.7.8.Verify the Client’s NeedsBeginning the Information SearchInternet Search EnginesFree Internet Information SitesCharging Internet Information SitesMisinformation, Disinformation, and Half-TruthsOther Information SourcesDrafting the Report12 The Business Plan1.2.3.4.5.6.7.8.9.10.11.12.13.Why You Need a Business PlanBusiness OpportunityDeliverablesCompany StructurePotential ClientsCompetitionMarket Share of ClientsMarketing ProcedureSales ProcedureProject Work ProcedureWorking TeamProjected RevenueProjected Expenses13.1 Personnel13.2 Website13.3 Marketing and sales costs13.4 Delivery cost13.5 Office overhead costs14. Profit/loss analysis15. Financing16. Future Expansion17. Action Time 939393939494959596Contentsvii

contents 2.qxp11/27/200812:40 PMPage viii13 Administration1.2.3.4.5.6.7.8.The Need for AdministrationKeeping Time RecordsBilling the ClientsCollecting PaymentsFile SystemKeeping Cost RecordsBusiness AccountingTax8.1 Income Tax8.2 Other taxes14 Expanding Your Company1.2.3.4.5.6.7.8.Why You Should ExpandProblems Associated with ExpansionPhases of ExpansionSubcontract EmployeesOffice FacilitiesHired EmployeesCompany OrganizationExiting the 1112113114115AppendixesABCDEFGHIviiiStart & run an internet research businessBusiness Plan for Military Budget Opportunity ServiceLetter ContractGeneral Service ContractProposalWebsite Request for ProposalSpecial Task ContractRetainer ContractSample ContractSubcontractor Letter Contract117125127129131133135137139

chap 01.qxp11/27/20082:19 PMPage 1CHAPTER1THE INTERNET RESEARCHBUSINESS AND YOU1. The Internet Research BusinessThe Internet research business involves finding specific informationon the Internet, for a client, and getting paid to do so. It also involvesarranging and presenting the information in a form that is useful tothe client, thus saving him or her considerable time. Occasionally,there will be a requirement to search other sources for information aswell; however, most of the information will come from the Internet.Companies around the world depend on information to stay inbusiness and prosper. They need information on new technology,components for manufacturing, software, markets, competition —the list is almost endless. Companies have to find and evaluate theinformation, but this can be time consuming and costly for them. Internet research consultants can be hired to do this work for the companies much more cost-effectively than if the companies did thework themselves.Who are these Internet research consultants? They are often oneperson operations, working from their homes, in a specific information area. These people have usually, through previous employment,1

chap 01.qxp11/27/20082:19 PMAn inexperienced searcherstands a chance of overlooking vital information,or worse, obtainingfalse information.Page 2acquired specialized knowledge in a particular field. More importantly, they know where to go to get more and updated informationfor their clients. Of course, their main source of information is the Internet, but they do not limit their investigation to just using keywords and search engines. To validate the information and obtainmore details, they also look in places such as relevant online magazine articles, company product lists, company annual reports, andpress releases. They will search anywhere that will provide them withthe detailed information that their clients have requested. This is thetype of business that this book will help you get started and run.2. How Companies Find Essential InformationSome companies subscribe to specialist information services thatkeep them up-to-date on their particular information requirements,but in most situations the companies get the information themselves.Larger companies may have a dedicated research department to provide the information for them; however, this can be a heavy expenseon the company and certainly not one that can be afforded by mostcompanies. Usually the people within the company who require information are forced to find it themselves. This is a very time consuming effort because these people are not experienced informationminers. They usually just punch some keywords into an Internetsearch engine and use what comes up.The Internet search method is very popular, but there can besome negative consequences. For example, an inexperienced searcherstands a chance of overlooking vital information, or worse, obtainingfalse information. However, the big negative is the time the employeespends looking for the information. This is time that should be devoted to profitable company-assigned tasks. It can cost the companydearly, particularly if, for example, a high-priced engineer spendsdays searching to see how other companies solved a particular designissue. This is where a contracted information researcher can save thecompany money by acquiring the information cost-effectively, andfreeing the company employees to do their primary job functions.The information required by companies varies with the companyand within the company. Manufacturing companies rely heavily oninformation to improve their products, increase their productivity,and market their products profitably. The service industry needs information for the same reasons. The government requires a wide rangeof information. The type of information required by these potential2Start & run an internet research business

chap 01.qxp11/27/20082:19 PMPage 3customers is briefly discussed in the following sections. As you readthrough the sections, think about how you could help in obtainingthe information for them. You may also be stimulated to considerother areas for which you could provide an effective information research service.2.1 Manufacturing industry information research needsManufacturing companies rely heavily on information that is usuallyobtained by the employees who need it. A much more cost-effectivesource of information for them is an Internet research consultant,hired for a specific task, or on an annual contract. These companiesneed information to help them to — design the goods they will manufacture, develop the goods to manufacturing state, establish production methods, find the best sources of component supply, identify the market they should address, assess the competition, establish prices, determine the best sales methods, determine the best distribution methods, and obtain customer feedback.As an Internet research consultant with knowledge and experience in one or more of the listed activities, you may be able to savethe company considerable time and money by acquiring the requiredinformation for them, verifying it, and presenting it to them in easilyusable form.2.2 Service industry information research needsThe service industry also needs information. The obvious servicecompanies with a need for information are the information companies themselves, but these companies already have trained staff to dothe research work. In effect, they are your competition, but withmuch higher overheads. Some of the other service industry segmentsthat can use the services of Internet research consultants are asfollows.The internet research business and you3