As small business owners, we are often asked, “Who is your target market?” And many of us will cheerfully answer, “Everyone!” And while it can be hard to turn away business, the truth is, “everyone” is never the right answer.
One surefire way to waste time, money and other valuable resources when you are a small business owner is trying to sell to the wrong audience. So take care in determining your target market. Here are some steps to get you started:
1) Take a cold, hard, objective look at your business.
What makes your product or service special and unique? Once you truly know why your business stands out from the rest, you can determine who needs your help and who would be willing to pay for your product or service.
2) Think back on all of the customers you’ve had in the past.
Do you have a handful of favorite clients? Are there an elite few whom you would jump at the chance to do business with again and again, not just because they were nice people or had deep pockets, but because their needs resonated with what you had to offer? These are the people who see true value in what you have to offer, and you can’t help but do great work for them. What attributes do these clients have in common?
3) Design your ideal client’s Demographic Profile.
This is a practical look at your target. A demographic profile includes your target’s age, gender, marital status, income, education level, occupation, location, and ethnicity.
4) Design your ideal client’s Psychographic Profile.
This is a more touchy-feely description of your target. A psychographic profile includes your target’s lifestyle, interests, hobbies, values, attitudes and behaviours.
5) Remember what YOU are all about.
In the realm of small business, you are your business. It’s very hard to separate the two. And it’s very difficult to sell to people you don’t identify with. Think back to why you created your product or service in the first place. What are your values and philosophies? People who get you will get your business. They will be the ones who see value in you, your product or service and pay you for what you do.
Once you’ve figured out who your target is, you get to face a whole new slew of questions: where do you find them? Are they accessible? Are there enough of them to sustain your business? Can they afford you? But rest assured, figuring out your target is the toughest part.
Need help determining your target market and reaching them? Branding expert Kim Speed of Purple Moon Creative can help, contact her at kspeed@purplemooncreative.com