The better you are able to understand your target market and your customers, the better your business plan will be and the faster your business will grow. Many new business ventures often struggle with finding and defining target markets because they either set their sights too broadly on the potential market or they limit themselves.
Most often, funders will say that entrepreneurs overestimate their market sizes quite a bit. It is easy to assume that your service or product will be in high demand. We get too precious with our ideas and make assumptions. The goal is to reach out to your potential customers to get a realistic view of your audience so that you can give concrete marketing ideas in your business plan. This may quell some of the concerns that funders have and give you a pathway to follow.
But what do you need to know? Start with these four things:
Who Will Actually Pay For My Products or Services?
The first question you need to ask is who will pay for your products and services. This will provide you with the most basic information about your target market. Your potential customers need to have a problem that you can solve and they need to know that they have that problem. This is one of the biggest hurdles people face. There are many ways to check if people actually know that they need your help, such as using basic surveys.
How Will My Target Audience Find Me?
The next thing is to ask how those people will find you. Will they look for you online? Walk down the street? See advertisements at bus stops? You will need to do research to determine your target audience’s demographics, geographic and purchasing patterns to make a plan to reach them effectively.
If you sell online, you may need to monitor customers’ online behaviors to see where to put options. If they purchase in person, you may need to check your dream location and see how you can stand out.
Are You Competing For Them?
One of the most basic questions you will have to know about your target market is this: are you the only person going after them? You not only want to know about this in real-time (who currently exists physically and online that offers the same product) but even do some research into other companies that might offer the same things you do. These are the companies that could expand into your niche or new companies that could emerge.
You have to keep your ear to the ground on this – look for clues or hints that other people are dreaming about building a company that is similar to yours. Even if you “get there” first, you have to consider the fact that competitors may emerge at some point.
If you don’t think you have competitors – look closer. Almost everything can be purchased online nowadays.
Is There Room To Expand?
Funders aren’t always looking at the here and now, they are looking into the future. You need to have a plan to redefine your target market and expand it into the future. This is particularly true for people who offer products and services that are “one-time” purchases. Figuring out how you will scale and bring in even more attention will help funders make decisions about how far you’ve planned.
Do you have a great idea for a business but need funders and a business plan? At IC Quantum, we can help you to present a business plan that will have funders lining up for your services. We have years of experience in guiding people to make the right decisions about their business, starting with feasibility studies and ending with working hand-in-hand with them to handle the bookkeeping once their business has flourished.
Ready to get started? Give us a call today at +27 87 980 0000 or send us an email at email@example.com to schedule an appointment.