5 Steps for new businesses to define a target market

So you’re new in business and don’t have any customers.  You’ve heard marketing experts tell you time and time again that you need to define your Target Market so you can refine you product offering and connect with the ideal client.  But how do you do this if you’re a new business?

Follow these FIVE simple steps to help you define your customer Avatar and soon you’ll be connecting with your dream client

  1. Why did you go into this business?

Chances are you are starting this business because you have seen a gap in the market and you feel you can provide a solution.  This is the starting place for developing your target market because inherently you know what the problem is and you most likely know who needs this.

A colleague of mine recently went into health coaching specifically for women past retirement age because she noted that many in the health industry were focussed on losing weight and fitting in health into a busy schedule. What my colleague noticed was that women who had retired had plenty of time, often had high disposable income but weren’t interested in losing weight and time management and were frustrated with gyms and trainers focused on this, but instead wanted help to gain vitality and long-term health as they age.

This is her ‘why’ and drives her to connect with a very clear client base.  It impacts on all aspects of her marketing from website design, social media strategy, choice of business cards and marketing collateral.

  1. What problem are you solving?

Following on from your motivation, you need to clearly identify what problem you are solving.  Put simply, that is the basis for any marketing activity or business plan. Knowing what problem you solve will give you a clue as to who you need to target.  

Ask yourself:

Who is mainly dealing with this problem?  

How can I help them?

What is the outcome of working with me and my business I seek for clients?

If you know the problem you solve, you are one step closer to connecting the opportunity you have to the client you want.

  1. What makes you unique?

You’re going into business, you’ve found a niche, you see a gap in the market, you’ve set up your business and that makes you unique.  If your business didn’t have a point of difference, we’d all be doing the same thing at the same time. Your unique offering is what sets you apart.  

One way of getting clear about your uniqueness is to look at your competitors and see what or how you do things differently.  This will help you clarify your point of difference because knowing what you don’t do is often a way of seeing just what it is that you do.

Get clear on this and you’ll be well on your way to articulating to your target market why they should do business with you – after all, there is only one version of you!

  1.  Who do you want to work with?

Most people go into business with a desire to work with certain types of businesses or people.  Why work with people that don’t make you happy or add value to your business? Life is too short, so think about who you want to work with and align your business with those people or businesses.

  1.  Refine and don’t be rigid

You’ve started your new business, you’ve created your Avatar and then over time, you realise your business has taken a different direction ..  Sometimes this is by design and sometimes its organic. Either way, be prepared to refine your Target Market over time. Revisit this as often as you need and align your strategies to your new target Market.

Starting a new business is an exciting time.  Knowing your Target Market will put you one step closer to generating a successful business.  Doing this early impacts on so many areas of your business strategy, so put some time into defining your Target Market and set yourself up for success

By | 2018-07-26T04:07:25+00:00 July 26th, 2018|Categories: Business Development|Tags: , , , |Comments Off on 5 Steps for new businesses to define a target market

About the Author:

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Firstly, he's a pretty great guy you'll want to hang out with him. When you're not hangin out with him, Braith runs the Melbourne franchise of BNI and helps people connect with their dream clients by finding their target market. He likes helping people through online courses, workshops and public speaking - so why not find out more about him?