Play to Your Strengths when Identifying your Target Market
If you are looking to start a small business of your own, the most important thing to remember is to play to your own strengths. Many creative people have great business ideas, but poor planning can cause even the best idea to flop. The first step in starting a small business is market research.
First and foremost, you want to find a market that’s the right size. What does that mean exactly? You want to find a niche market that is big enough to make a profit but small enough not to exceed the resources of a small business. You also want to find a niche market that does not compete with large corporations.
Two common mistakes that entrepreneurs make when first starting out are targeting a market that is too broad and targeting a niche that is already heavily exploited. What you want is something in between. You need to be specialized enough to distinguish your product or service from the competition, but not so specialized that your target market is too small to support your business. There has to be demand for what you have to offer in order to be successful.
To start off with, choose your own unique area of expertise. What are you good at? What do you have experience doing? Use your education, your skills, and the people you know who could help you transform your idea into reality. If you have many areas of interest and are not sure which one would be the most profitable, a little more research will be needed. Consider how it might be possible to convert your education and skills into money-making opportunities. Research your surrounding marketplace to see what is needed in your area.
If you are trying to find small markets online, be forewarned that this can be tedious and time-consuming. You will have to take your idea and research an exhaustive list of keywords and keyword phrases that people in your target audience are using to find information on their desired product or service. You also want to examine your keyword list for terms that might lead to other niches that might require further research. Compare those keywords to web pages to evaluate the existing competition. Eventually you’ll narrow down your list to keywords and phrases that generate the most online traffic and are the least exploited.
The key to having a successful business is to know your own strengths and weaknesses, to know when and where to ask for help, and to budget accordingly. Need help with your small business? Pamela Finnesand, The Business Maximizer can assist you! Schedule your complimentary Business Breakthrough Strategy Session today.
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