The critical part of starting any small business comes with knowing your target market. Since many small business owners are so invested in their ideas, they can have a difficult time defining and targeting their customers in order to help their new venture succeed. One mistake new entrepreneurs can make is thinking that focusing on a target audience will automatically exclude potential customers; but it is really about using your marketing time and money in a specific area that is more likely to produce sales. Here are some ways to help you define your target audience.
1) Learn From What You Are Doing Right
First, look at your current customer base and figure out why they buy from you. What are their similarities? For example, are they all from the same geographic location? Are they all parents? Once you figure out what the common thread is, you can narrow down your target audience to people like them.
2) Analyze your Business and Its Benefits
If you don’t already have a customer base, you can list out each feature of your business and its benefits. Then you can list people who might need those benefits. Being able to narrow down what you do and why people need your product or service will greatly help you identify your target audience.
3) Don’t Compete with your Competitors
Check out your competitors and try not to compete with them for the same customer base. Instead try to find a niche market they might have over-looked.
4) Consider Demographics and Psychographics
Figure out who has a need for your product or services while considering things like age, location, gender, income, and family status. Once you figure out your target audience based on those criteria, consider their personal characteristics or psychographics. This includes things like lifestyle, hobbies, values, and personality. This will help you narrow down your target customer base.