One of the first steps in developing a business plan is determining your target market and why they would want to buy from you. You need to answer some questions that will lay the foundation of your business plan.
Listed below are some tips that will guide you to clarify what your business offers, identify the target market for it, and build a niche for your business.
Be Clear About Your Business Offers
You need to answer this – aside from basic products or services, what else are you selling? Take this into account, in your town there are a handful of restaurants that are all selling the same product which is food. But each restaurant is targeting a different need of customers.
It could be that one is a drive-through fast food restaurant; another perhaps caters local delicacies in a country style kitchen, while another may be a fine dining restaurant that specializes in wood-grilled fare. All of these restaurants are selling meals, but they are selling to a targeted customer who is looking for the unique qualities that a restaurant has to offer. But the reality is, they are selling a combination of product, value, ambiance and brand experience.
Be sure to understand what makes your business unique if you are starting your business. You have to know what needs your product or service fulfills. You need to establish the benefits and differentiators that will help your business stand out from the competition.
Learn to Strategize and Figure Out Your Specialty
It is important that you have a clear definition of what you are selling. Do not try to offer anything that you are not sure somebody will like because this will have a negative impact on business growth. For a smaller business, the better strategy is to be able to do some important things really well rather than doing a little bit of everything but not really having a full grasp of one thing. To start off, you can offer specialized service or goods that can attract a specific group of prospective buyers.
Distinguish Your Niche
For your business to be successful, it is important that you will create your niche. Many business owners can easily identify a niche by using their own market knowledge, but conducting a market survey with prospective customers can help immensely in uncovering untapped needs. Here are some of the things you need to identify during the research process:
- The areas that your competitors already exist
- The areas that are underserved
You need to identify these opportunities and niche markets to help you in your business planning process, and this is essential to the success of a new business.