The general purpose of market research is to provide the organization with relevant, accurate information about it’s consumers and the competitive environment. This benefits a company in many aspects of the business, and can ultimately save the company time, effort and money.

Benefit #1 – You get to know your customer
When first starting a business, or launching a new product, you first need to determine if there is a market for this product or service. This is where market research comes in. By completing surveys, collecting statistics and product testing, you will learn who will use your product, where they are, what they like, and where to advertise that will get their attention. Often if you test the product with your target consumer, you will discover ways that consumers use your product that you hadn’t even considered – which in turn builds your marketing and aids in advertising endeavors.

Benefit #2 – Referrals
In completing your market research, you will have developed a database of names, addresses and phone numbers. Not only are these people that participated in your surveys, these are your customers, and your sales people! After completing a survey if you were to send out a simple “thanks for participating” postcard, you’ll leave an impression with this consumer. Not only will this make them more likely to buy from you, either for the first time or again, but if your product is successful, they will refer friends and family to it. Word of mouth is a wonderful thing, and market research is another way to get your name out there.

Benefit #3 – Enhanced Products
Market research can help you to determine more about your consumer, but it can also tell you more about your product. What would your customers change about your product? Is the packaging keeping the product safe, and yet still appealing to them? Is there something missing from the instructions? Market Research can help lead you to product development, and continue to better your company and products.

Benefit #4 – You can save money!!
Market research can save you from making a poor investment. While market research is an investment in itself, spending the time to learn that no one really wants to use aerosol toothpaste isn’t such a bad idea. When you consider the costs of market research, think of it this way – You COULD pay whatever it costs for market research, OR you could spend the money to produce the aerosol toothpaste, it’s packaging, as well as put money into storage, shipping to stores, sales people to find the stores to distribute, and the advertising and marketing campaigns. Which do you think would be more cost effective? Saving yourself from a failed product launch, or dealing with the aftermath?

Remember to keep your market research on the priority list. Some things that appear to be good ideas, are easily rejected by the consumers, and can end up being very costly. While I personally have nothing against clear cola, the market likes what it likes, and brutally rejects what it doesn’t.

Lines of credit have almost completely dried up in this recession, and it’s harder than ever for businesses to fund their new development projects.  Ontario’s Advanced Manufacturing Investment Strategy (AMIS) is a great venue for Ontario manufacturers to pursue. What’s more, AMIS is available to companies from all manufacturing sectors in Ontario. The $500 million dollar provincial program focuses on:

• industrial R&D
• design/prototyping/engineering
• new/ advanced products/materials
• advanced manufacturing processes
• robotics/software development
• waste reduction
• energy conservation

AMIS, when granting a loan, can provide up to 30% of the total eligible costs of a project (up to a limit of $10M). This funding is given in the form of a repayable loan. The loan is interest free and principal free for up to five years, providing the company receiving it meets job and investment targets mutually agreed upon between the company and the province. After that period, the repayment rate is the province’s cost of borrowing, plus an additional 1%.

To be eligible, projects must create and/or retain at least 50 jobs. Alternatively, the projects must invest $10 million over the 5 year period. The costs eligible for the loan (excluding ongoing costs of production or operations) include:

• research and development
• equipment and machinery
• materials
• construction/facility improvements
• training
• overhead
• labour (one time only)

The terms for the loan are negotiated individually. After completing the application process, most companies receive word of the province’s decision within a relatively speedy 45 calendar days. This sometimes may take longer for the more complicated applications. The Minister of Finance, along with the Minister of Economic Development, approve or deny applications based on the guidelines of the AMIS Assessment Committee.

What’s more, for those manufacturers who regularly claim for SR&ED, receiving an AMIS loan has no impact on SR&ED eligibility. The AMIS loan is not affected if a business has already received an SR&ED return or income tax credits.  Companies that have received AMIS funding often include extra cash procured by SR&ED towards their projects. In fact, any business that has received SR&ED credits is more likely to be meeting the AMIS eligibility requirements.

For more information about AMIS, visit http://www.ontariocanada.com/ontcan/en/progserv_amis_en.jsp

Hello Readers,

On Thursday, January 29th, 2009 Northbridge Consultants will be holding our very first free breakfast seminar, to provide a meaningful information session on the SR&ED program. There will be a free, fully catered breakfast  buffet, and the seminar is of no cost to attend.

The primary focus will be to provide a complete, thorough understanding of the SR&ED process, and how companies can use this to take advantage of Investment Tax Credits for work performed within Canada.

The seminar on January 29th will be held at the Cambridge Hotel & Conference Center, in the Dorset Room. The address is 700 Hespeler Road in Cambridge, ON.

Breakfast will be served at from 7:30am, and the seminar will run from 8:00am to 9:30am (with an intermission at the 45 minute mark to allow for a break). The Northbridge team will be staying after the seminar for you to approach us with questions.

The speakers at this event will include:
Sol Algranti, President & CEO of Northbridge Consultants
Ajay Sinha, VP of Operations of Northbridge Consultants
Gerry Fung, Account Manager with Northbridge Consultants
Ashley Demers, Sales & Marketing Specialist with Northbridge Consultants

also in attendance will be our special guest speakers:
Ken Lancaster, Tax Principal at MacGillivray Chartered Accountants & Business Advisors
Larry Vokes, Community Development Advisor with EMC Canada

To register, or for more information, contact:
Ashley Demers at (519) 623-2486 x 231 or ashley@northbridgeconsultants.com

You may also feel free to pass this information on to anyone you feel may be interested in attending.

Register soon, as seating is limited.

We hope to see you there!