How to Start a Survey Business

Part 1 - How to start a Survey business - Background

A survey company creates, distributes, and analyzes surveys for a variety of businesses or special interests. The purpose is to collect feedback before deciding to alter policies or processes to improve efficiency and overall satisfaction. Owners may either work on a per-case basis, or choose to specialize in a specific niche. For example, a survey company that only administers surveys to students about their professors.

You may also be interested in additional online business ideas.

Our guide is in 3 parts:

• Part 1 - How to start a Survey business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a survey business?

Costs are negligible to get started, especially if a person is planning to start with organic content. People can conduct their business straight from a home office with a computer, wi-fi, and a small advertising budget. Owners can save even further by using online sites like Survey Monkey or Constant Contact to get a jumpstart. Many of these services offer a free account that you can use to create sample surveys.

What are the ongoing expenses for a survey business?

Expenses for a survey company may include the following:

• Independent market research

• Website/advertising costs

• Administrative equipment/maintenance

• Employee salaries

• Office space (if applicable)

Who is the target market?

The target market can be anyone who cares about improving their business or cause. Teachers use surveys to gauge what their students are getting out of the class. Companies use them to find out how their employees or customers feel about certain processes or changes. Non-profits use them to find out how much interest there is for different endeavors in any given area.

How does a survey business make money?

Survey companies typically charge based on the amount and the type of questions they ask. For example, an open-ended question that requires a written response will require more time than one that asks responders to list how they feel on a scale of 1 to 10.

How much can you charge customers?

The costs for surveys ranges based on the types of questions asked and the company who’s conducting the research. However, make no mistake that companies are willing to pay for solid feedback. Some companies will gladly pay consumers for their opinions, so owners will need to structure their budget based on a number of factors.

How much profit can a survey business make?

Survey companies can make plenty of profit once their clientele can make the connection between feedback and profits. Figure out what you’re bringing to the table, and show new clients how you can do the same for them. If you administer 5,000 surveys a year at $1 a pop, you would make around $40,000 in pure profit (assuming you’re the sole proprietor.)

How can you make your business more profitable?

Survey companies may want to eventually expand their business into additional marketing services. For example, instead of just brainstorming a marketing campaign based on survey feedback, you can design and implement too. Companies may be more likely to turn over additional marketing services on an ad-hoc basis because you’re already familiar with their mission and clientele.

Day-to-Day and Growth

What happens during a typical day at a survey business?

Owners may have to complete any or all of the following on a typical day:

• Researching potential clients

• Writing/distributing surveys

• Compiling/analyzing data

• Managing employees

• Brainstorming for clients

What are some skills and experiences that will help you build a successful survey business?

It may help for the owner to have some type of background in psychology and marketing before getting started. They will need to be able to structure a survey in a way that is both compelling and revealing. This may not even have to be formal education, but they should bring with them a thorough understanding of how and why certain ideas and concepts succeed where others fail. They should also be extremely organized to keep track of their many clients and questions.

What is the growth potential for a survey business?

While it’s true that there are plenty of existing survey companies (both online and otherwise), there is still a need for surveys that can get to the heart of the question. It’s all too easy for participants to rush through their responses or to misunderstand their own thoughts and intentions. There is plenty of growth potential for a company who can cut through the noise and focus on what people are really saying.

What are some insider tips for jump starting a survey business?

Owners will first need to master the art of handling business owners or leaders. They may be skeptical of an outsider whose entire premise is built on implying that a leader is missing something. After all, they handle the details of their business, and they may not want another cook in the kitchen. Survey business owners need to learn to drive home examples of how the right questions can make all the difference.

For example, when initial survey results of New Coke were conducted, the infamous failure was touted as tasting better than original Coke. But what the surveyors failed to realize is that a tiny sip of the sweet beverage was not the same as a full can. They also didn’t take into account the pure nostalgia element of Coke — a component that consumers weren’t ready to give up for the sake of something new. It’s these types of failures that cost companies millions, and they’re all tied in with how well a survey is conducted.

Owners must also learn how to use their unbiased perspectives to their advantage. Sometimes an outsider can spot problems in seconds that insiders are too close to see. It’s these insights that allow successful surveyors to demonstrate their value to the company (in more than just abstract terms).

How and when to build a team

Survey companies don’t necessarily need to start with a team until they have enough business to warrant the extra salaries. If owners do choose to hire, they should look for excellent writers with a passion for what makes people tick.

Part 2 - Is a Survey business the right fit for you?

Part 3 - Action plan to launch your Survey business in 90 days