Who or what is your target market? ?
When you set up a new business you tend to be clear about what it is you intend to provide – be that in the way of products or services – but a surprising number of entrepreneurs are unclear about who they plan to do business with.
No startup business can be all things to all men and for that reason it’s essential that the new business owner is absolutely clear about his or her market segment.
What is a target market?
These are the people or businesses who want and need what you provide. These are the potential customers who have an itch that your goods or services will scratch. Your target market should consist entirely of your ideal clients – the clients you know you can help.
Failing to identify the key traits of your target market will mean that you have no idea where to find these prospects nor will you know how to approach them – your positioning. In short, you’ll be giving yourself a real uphill struggle to get your business off the ground.
By taking the time to get absolutely clear about your business market you’ll reduce that crucial time lag between starting your business and closing the first sales, which will produce much needed early revenues.
In short, doing this groundwork will make the difference between success and failure.
The Planning Process
When you decide to do anything in life the chance of a successful outcome increases in direct proportion to the amount of planning and preparation you do.
You would not expect to run a marathon without training and preparation.
Most people do not just pitch up at the airport when they want to go on holiday – they consider possible destinations and make a preferred choice.
It’s a mystery why so many small business owners set up new businesses without any clear plan or preparation.
It is far, far easier to provide a market with the goods and services they want and need than to create a market for the things you want to sell.
And, whilst we are on that subject, the beauty of getting really clear about your target market and their very specific needs is that you will never have to sell! Your potential customers will come to you to buy.
As part of your business planning process think about the following:
- Who needs your goods or services?
- Are they male, female?
- Is it a business to business market? In which case what type of businesses need you?
- In a business to consumer market in what age range does your target market fall?
- What is their income level?
- What are the benefits of your products and services?
By spending some time on this now you are offering yourself the best chance of enjoying early business success.