As I was listening to Alexis Martin Neely on her monthly coaching call with the Personal Family Lawyer group today, part of the topic was Target Market and it really got me thinking because I know that can be one of the most overlooked aspects when it comes to running your business.
Actually, I say “running” your business but your target market should be something you figure out when you’re starting your business. Looking back at the planning I did when I started my own business, I didn’t realize what a huge piece of the puzzle I was missing by not doing more research and carefully considering and evaluating my target market.
When someone asks you who your target market is, what’s your answer? (If it’s “I don’t know”, we need to talk!) Do you just have a one or two word response? If it takes you a nanosecond to answer that question, you probably haven’t put enough thought into it. Your answer should be something more than “parents” or “small business owners” or “work at home moms”!
Don’t just write out a list…try to really picture your ideal client. What is their day like? Are they busy? Are they checking their Blackberry while they brush their teeth and taking conference calls on their Bluetooth on the way to their corner office downtown? Or are they so busy with kids and school and appointments and carpooling that they haven’t had time to check their email in a week!?
One of the first questions people will ask when thinking about their target market is “How much income do they have?” Take that a step further and ask yourself what are they spending their money on. Do they travel? Do they invest? Do they splurge? If you’re marketing some kind of luxury item, you may not get very far with the frugal types. But if you’ve got some kind of info product or other item that helps people save money, then frugal folks are your friend!
There are plenty of outside-the-box questions you can ask when you’re evaluating your target market. Instead of listing what kind of job they may have, think about what they do on the weekends. What are their hobbies? Would they rather read People magazine than the Wall Street Journal?
You get the idea, right? Don’t just make a list…create a character!
Oh, and once you’ve chosen a target market, don’t think of it as being set in stone. Times change, needs change, even your business changes. If you’re feeling stuck or like your business has hit a plateau and you still feel like there’s room to grow, go back and revisit this process. You may benefit from changing your target market, adding an additional one, or just try to get to know your existing market a little bit better.
You are absolutely right that the question, “Who is your target market?” should be asked at the start of the business formation. If we don’t know where we’re going, how can we possibly get there? Defining a target market is like defining the road map for the business.
It’s important to remember that we can’t be all things to all people, and by defining a target market, we are also deciding on who not to pursue as customers. This does not mean that we don’t value their business, or that we can’t change our mind later. But we must focus our efforts where we think we will have the most success.