Will your business idea attract enough customers to be a profitable business? One of the biggest challenges for startups and growing companies is determining who their ideal customers really are. The more you know about the marketplace and industry in which you operate, the better you’ll be able to identify gaps, needs and unfulfilled wants. You may use trade and industry information, focus groups, census data and other market research to understand your customers and know what your competitors are doing. Market research can identify market trends, demographics, economic shifts, customer’s buying habits and important information on competition. Use this information to define your target markets and establish a competitive advantage.
In particular, when you are starting out, you want to focus on customers where quality or solving the problem is more important than price. Small businesses and entrepreneurs in general aren’t trying to sell to mass markets rather they should focus on a niche(s) that truly value their solution. Think about your customers or potential customers, who gets what you’re doing? Who needs it? Who is willing to pay?