A guide to picking your market
The fundamental principle of starting up your own business is to know your market. The market you pick is how you’re going to generate money, reputation, and growth. Your business ideas can only be fully implemented when you have an idea who it is your trying to attract. Picking a target market can be straightforward for some, but others can suffer from seeing their business ideas falter because of their marketing strategy. Here are some things you should keep in mind when deciding who it is your going to market to:
- What fits your business best – The products and services you offer should give you a good idea on who it is you should be looking to do business with. Think about who it is that would be interested, considering things such as: their age, gender, income, and occupation. Identify who has the greatest need for your business and who benefits most from your product or service.
- Any previous markets – Think back to the previous markets you might of experienced in past jobs. Was there anything there you could maybe take advantage of? Did you notice a demand coming from a section of a market? If you have track record in a sector – this can often count in your favour.
- Don’t aim for too many – Targeting large markets isn’t a wise idea when starting out. More established companies are already offering what you have and the consumer isn’t likely to just turn to you just because you’re the new kid on the block. Picking a smaller, ‘niche’ market will be more cost efficient as your only targeting a select few who actually need your services rather than a large group, generating more profit, as well as saving you some money.
- Competition – competitors are always going to be present no matter which market you choose to target. Assessing the competition before you start will give you a good idea on how well you could do. Look at whether they offer more services than you, are a larger business than you etc. Starting up before might lead to you being pushed aside by bigger, more established companies, so think carefully about the competition.
- Outside help – Picking a market is straightforward in theory but it’s not always the case. Your marketing strategy might not be up to scratch and your missing opportunities because of it. Professional help is a useful tool in marketing, as the people your talking to have years of experience and have seen many situations similar to yours. Alternatively, you could even use your network for advice or to be pointed in the right direction. Turning to people for help doesn’t mean talk to your friends and family. Expert, professional advice can make the world of difference, and you can’t rely on people close to you giving you the advice you need to hear.
Your marketing strategy will be pivotal to how your business survives. Far too many people believe that having an idea is enough to start up their own business and start making money. The people you’re looking to sell to are your source of profit and growth, so getting your market right is extremely important to your business’s survival.