Launching a new business involves Finding Your Target Market the long series of steps that can be overwhelming for any individual. This article is the first of many that will take you through the process of starting a new business. There is no magic formula to creating a successful business, but there are some basic steps. Read on to find out the first step and be sure to check back later for the next step.
The first stage to starting a new business or product is to discover what the idea is. It could be a T-shirt company, a new social media site, or some brand new electronic. No matter what your product is, you need to make sure there is a market for it. Is it something that has already been done and is there anyone who would be willing to use/buy it? What will the market look like? Will it be geared towards men, women, children, college students, seniors, middle class, fathers, etc.? You must decide the demographics and psychographics of your target market to analyze how you will create the product to better suit their needs.
One resource you can use to evaluate the people in any given area and market is MyBestSegments. You can use this tool to type in a specific zip code, and it will give you insight to the type of people who live there. They offer general statistics about an area for free, but can give you more in-depth information if you become a customer of their service. This tool will come in handy to find out what areas have the people you are looking for. It can also come in handy during the marketing stages and give you ideas on how to target your advertisements. Now that you know the general approach you need to take when Finding Your Target Market here’s a list of audience characteristics you need to consider.
- Income/Class (frugal or big spender)
- Marital Status
- Do they have Children
- Values (conservative vs relaxed)
One way to decide who your customers will be is to look at your competition. Look at Finding Your Target Market of brands in the same industry. See if there is an audience they aren’t catering to that you can focus on. For example, if you want to open a local bakery check out the competition and find out what you will be up against. If there are 20 bakeries in the area and 15 are Italian bakeries, it may be a smart idea to open a different type of bakery than Italian. If you are going to start an e-commerce website selling jewelry, try searching for jewelry on Google and see which websites pop up. You have to expect that there will be competition out there, but what you need to find out is how your product is better than what is already out there. It may not be that your product is better, but that you do something else better than your competition. For example, making your website easier to access than every other jewelry website could bring more customers to you. You could be offering the same or similar products, but since your site is easier to find and/or navigate more people will choose you. Customer service is also a big deal. If you provide excellent service and go above and beyond what is necessary, people will remember that.
Once you establish your target market and know you will have an audience, you can then move on to the next step: Analyzing your competition. To stay updated on this topic and others, connect with us on Facebook, Twitter and Google+.