Whatever you sell, whatever your business offers, you need to know who your customers are. From high-end banks to the local corner shop, both have target markets. If you are setting up a business for the first time, this article can help you to identify your potential customers.

Think Differently.

The first step is to change the way you think about your business. Instead of just selling goods, or providing services, you are solving problems. So, what problems do you solve? Your customers will be the people who have these problems. Knowing this will help you work out how to target these people.

So, who are they? How do you define them?

Create an image of who these people are by asking relevant questions. Define them in appropriate ways. Do they drive? Own a PC/Mac/tablet/ smartphone? Are they homeowners or renters? You could also group them, by location, by sector. These are just some examples, but knowing this can help you build up the market you want to work in. You can begin to determine who your target market is in terms of people; are they men/women, young/old, high income/low income. Or in geographically terms; locally/regionally or nationally/internationally.

Look at your company

To find your target market may be as simple as having a long, hard look at yourself and your company. Do you have any specialist knowledge? From previous employment, have you got any insight into a different sector? Do you have good knowledge of your local area? From this, you can carve out a specialised market. For example, you could decide to set up an accountancy firm. In your previous jobs, you’ve worked in different charities. You could set up an accountancy firm that specialises in charities. Because you have knowledge of both sectors, you already have contacts. This gives you your target market of charities within your local areas.

Knowing who your potential customers are will help you decide which direction to take your business. Taking the example of accountancy firm again, if you work in a small town where there are a lot of small businesses, going after the big corporate contracts may be the wrong tactic. Look what’s in your local area?

Why is it important?

It is important to identify your target market from the start because otherwise, you do not know where to start. If you know your target market, you can them tailor your advertising, products and promotions to make them appropriate and more appealing. In trying to market to everyone, you’ll appeal to no one.