Know Your Market

July 2, 2017




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The Power of a Focused Business

 

What is the clearly defined focus of your business? What is your niche market?

It’s one thing to know the product your business sells; it’s quite another to know who will buy your product.

Chances are, the people who will buy your product have similar likes and dislikes. They probably enjoy similar activities. And they probably gather in similar places.

Your goal is to figure out what it is your would-be customers have in common. Figure out where they “flock.” Then go to them and sell them products that meet their particular needs.

The great temptation is greed… to try to go after everyone at once… to be all things to all people. But if you feel so tempted, it’s good to remember the words of wise men who’ve gone before you. Here are just a few examples:

Bill Cosby, famous actor and comedian, said: “I don’t know the key to success, but the key to failure is trying to please everybody.”

Seth Godin, author of Purple Cow and other internet marketing books, wrote on December 7, 2003 in his marketing blog: “In general, if you’re trying to reach everyone, you’ll reach no one.”

Dr. Ralph F. Wilson, in Issue 12 of Web Marketing Today, wrote, “The key for small businesses is to master the art of niche marketing.” [emphasis added]




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Niche marketing–marketing to a specific, focused group of people–is the smartest way for small business owners to operate.

I’m sure you’ve heard bad advertising that claims “everybody” needs a particular product, or “everyone” should buy it. But these claims are really the result of misdirected enthusiam. Their product or service will not be “perfect” for everyone… and neither will yours.

So what kinds of questions might you ask to determine your target market–your niche?

Who would be your “perfect customer?”

Would your perfect customer be a man or woman?
How old would she be?
Where would she live?
What would her interests be?
With whom would she associate?
What groups or clubs might she be a member of?
Where would she like to shop?

Who would be your “worst customer?”

What can you do to repel that person–to make sure that he or she never becomes a customer?
Now, once you’ve got a pretty good idea of who your ideal customer is, visualize your perfect customer whenever you do something in your business that will affect all of your customers. Imagine how this one customer will respond. Will she be excited, happy, thankful? Or will she be let down, bummed out, or disappointed?

You do have a perfect customer for your business. By continually pondering the thoughts, emotions, and reactions of this one person, you can really start to super-focus your business energy. And, as a result, you’ll begin hitting your target with more and more accuracy every time.

Determining your market niche is probably the single most important aspect of your business plan. It guarantees your business’s longevity because it keeps you focused and on track.

WHAT IS A BUSINESS PLAN?

A business plan is a document designed as a road map for a soon-to-be business. It contains information such as: start-up costs, projected cash flow, marketing plans, and the business’s focus.

Many people have heard of business plans, but don’t know what they are because they’re not required to start a business. Though they are often necessary to acquire bank financing. If you don’t plan to acquire bank financing, then, chances are, you won’t need a formal business plan. Nevertheless, it’s always wise to create one anyway.

Next up: Why True Entrepreneurs Avoid Business Systems Like the Plague




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