How to Start? How to Find the Right Market?

ou want to open a new business – that’s the first step, so congrats!! Now, it’s time to turn it into practice.

When starting a business, many of us have a general idea of what we want to sell – the features, capabilities, and overall direction. However, the challenge is that while we have a specific vision for our business and our products, most of the time, we don’t have a clear understanding of who our real market is.

That’s when the real work begins. Before diving into the process of developing a business plan, we need to understand the market we want to enter. How big is it? How easy or difficult is it to penetrate? What are the existing competitors doing? What are the trends in our market? And simply, how do we begin? These are just a few questions we need to address before moving forward because, without this, we’re simply shooting in the dark, hoping to hit something. And, frankly, this will only cost you time, money, and, truth be told, effort and motivation.

So, we have prepared four methods to assist you in reducing some of that uncertainty! Let’s get into it.

First of all, you have to identify your target market – the people you want to sell to!

Knowing who you want to reach and why can help you make more effective marketing decisions, like which channels and tactics are best suited for your endeavors! And no, your target market should not be “everyone”.

Identifying your target market can be as simple as defining the characteristics of your ideal customer or identifying where they hang out online and overall creating a persona of how they behave and what interests them. You may also want to consider whether there are multiple kinds of customers within that broad definition. For example, if different types of people might buy products from your business (elderly vs. young adults) or if some potential customers might have different needs than others (first-timers vs. experienced).

But be aware! While you should not target everyone, don’t assume that just because you have created this segmentation, you won’t sell to others or exclude those who don’t match the model. Instead, it enables you to concentrate your marketing efforts (and budget) on customers who you are sure that they will buy or who might need it. You'll get the most out of your efforts while bringing in additional prospective clients along the road.

In addition, it can be helpful to understand the different stages of your target market’s journey. Think about it: if you sell a product or service that helps people with their finances, then there are likely several phases someone goes through before they decide to purchase from you. It’s not as easy as you might think. Believe us!
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Consider who your competitors are and where they are targeting their products or services.

You want to look at what you could do differently than your competitors so that you can come up with a competitive advantage. After all, you want to have a specific feature that will be the dealbreaker for your market. This is every business’s goal.

To gain a thorough understanding of the competitive environment, perform a competitive study or use web resources such as industry reports, market analysis tools, and even social media platforms. You’ll be surprised about how much their content online means in understanding who you’re dealing with. Analyze the strengths and weaknesses of your competitors and leverage their weaknesses to your advantage.

So, start finding out – who are the companies that provide similar goods and services? What is their price range? What exactly are they changing? What features does their product or service offer? What is their competitive advantage?

But it's also critical to think about consumer wants and how you might satisfy them. Why not give them what they want? The secret? Get input on what consumers in your target market or sector would like from a business like yours by speaking with them. Nothing beats face 2 face approaches! Make a list of all the things that may go wrong! In this way, it won't be as bad if something goes sideways. If you are prepared for the worst, you will likely overcome it!

It's crucial to have a strategy in place and stick to it if you're going to launch a business. Moreover, think about your rivals and how they are approaching their modus operandi. Maybe you can learn something from them! Keep your friends close and your enemies closer, right?
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Define your value proposition!

Now that you understand who you’re dealing with, it’s time to understand what sets your product apart from others in the market and what value it brings to your customers – something that your competitor doesn’t provide or doesn’t have.

So, take a look at your product and ask yourself – “what’s unique about my product?” Maybe you have a more affordable pricing model or maybe a better user interface, or maybe you even have a corporate social responsibility (CSR) initiative. Whatever it is, make sure it’s something that resonates with your target audience and makes them want to choose you over others.

For example, say you’re starting a new meal kit delivery service. So, your target market is busy professionals who want healthy meal options. After conducting market research, you realize that most of your competitors offer similar types of meals and ingredients. However, you notice that something is missing from your market: the lack of focus on gluten-free or vegan diets. This is where your competitive advantage comes in by adding a menu with dietary restrictions.
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Determine where your understanding of your target market is lacking.

Most entrepreneurs make the mistake of assuming that their clients are just like them. News flash: that is rarely the case! In reality, the majority of the individuals in your target market will have very different requirements and goals than you have! Do not try to outsmart your clients - listen to them and their needs! This is the long-term strategy for success!

You should also look at their pain points! These are the factors that cause them stress or frustration when trying to achieve something related to your product or service. Conduct market research. Surveys. Focus groups. Make use of the online tools to create a profile for your consumers. This way, you can understand how your product fits into their lives.

Once you understand what problem your company solves, try to dig deeper with your capabilities and your functions. Your market should be divided into two categories: main and extended. But in your main market, look for opportunities in niche markets that aren’t yet being tapped by other companies.

Because there are no rivals in a niche market, it won't be as overrun by competition, which is the reason why you should do this! You have more room to develop and earn money in a niche market. So, think about this! Use the information that you got earlier from their social media and SEO techniques to find these off-the-grid markets! You do not know when a great one will pop out and change your business!

In the end, it's up to you to decide which market is best for your business. But if you follow these steps and do some research into the different options available, then choosing a target market will be a piece of cake. Let us know how it goes!

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