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Hello readers, today I will be writing about understanding your target market. Basically, before starting your business you must have a target market. Some individuals start a small business without really understanding their target market. To be able to serve your target market appropraitely, you must understand it before even developing your products.
At first you must identify your target market. So how do you identify your target market? You will just have to think about the people that will most likely benefit from your products. It could a particular age group, it could be a gender, it could be a working class group. It could be based on the purchasing power of individuals. Secondary data could also be used to identify your target market by using data of those who make existing products that are similar to yours.
After your target market has been identified. Then you need the size of the market. Institutions like The Office for National Statistics could provide you with data you need to draw information from. Mostly you will find information about the size of your industry online. And ofcourse, the market leader will be known cause it will also be online. Well, it will challenging to get some market share from them when you first start your business, so you will look at smaller competitors to have an idea of what your market share will be like at the initial stage of your business.
A study of ex new entrants of the business market, will also give you an estimate of what your growth in the market will be like. Frameworks like the PESTEL analysis and Porter's five forces will alsi I wrote about both frameworks in my book "How to become a successful entrepreneur" (USA). If you reside in any other country, it is best you pick it from the Amazon page for your own country. It saves shipping cost ofcourse.
Keep checking my blog regularly. Cheers!