Choose a Target Market9 Oct, 2009 By: Leah Grant imageSource
Choose a Target Market
According to New Business Mentor, Leah Grant, there seems
to be two things that new small business owners (customers or even smaller
dealerships) resist: writing a thorough business plan and choosing a target
market to directly focus on.
Leah understands why business owners balk at creating a
business plan. It's time-consuming; they may not know what to include; they
don't want to be tied down to a plan; they aren't sure how to properly forecast,
and a number of other valid reasons. (All of which need to be overcome).
Why do new small business owners, particularly
service-based business owners, want to leave their options wide open? They are
afraid. Worried that the business from one target market won't cover their
expenses and yield a profit, they want to generalize and cast a wide net and try
to grab all they can. This mindset only creates more work for them and costs
them referrals because people aren't really sure which market they specialize in
to be referred to as an expert. Remember that the term generalist is related to
the word generic; which conjures up anything but specialist!
Top 3 Reasons to Choose a Target Market:
1. Saves time - One target market means one marketing
campaign that is focused, with information that can be easily updated to stay
current. Only attend tradeshows, Web researching & prospecting, even commenting
on blogs that are a match for your target market. And focus on educational and
professional growth opportunities that are related.
2. Gives you credibility - When you are seen as a
specialist in a niche area, you gain credibility. Credibility garners respect, referrals,
new business & more opportunities. "Standing for" one thing that you promote
consistently allows people to remember you.
3. People refer your business - When you consistently
participate in marketing activities that target a particular area, people learn
what you do and who you serve, which establishes specialization & sends
prospects your way while retaining satisfied clients.
If these tips still don't convince you that choosing a
target market is a good idea, then try doing this simple exercise:
1. Write down the name of one of your target
markets on a piece of paper.
2. Estimate how many people fall into that target
3. Estimate how many people in that target market
have the money to pay for your services.
Now, how long would it take you to provide service to all
of those people?
Unless your target market is extremely small (in which case
you should consider another) or has no real money to pay for your services (once
again, consider a different one!), then this simple exercise should convince you
that there are many people in your target market who have the ability to pay for
Remember that you first need to create a thorough business
plan on your decided market, and commit to it, choosing the best target market
for your services. Do your homework. Get facts, statistics and buying habits
from the Web on your intended “target” to help formulate a realistic plan of
action. Utilize a little “search engine marketing” to uncover lots of
information; perhaps place a small ad on your company with Google or Yahoo, to
Do the math, and whatever you do, set a goal and have
yourself and your staff prepared to follow through with your plan. You need to
market yourself to your target audience in order to gain their trust,
establishing yourself as a specialist who can be relied upon for quality service
in that particular “niche.” Once applied, own that target market and look for a
bulls-eye in profit returns!
New Business Mentor Leah Grant publishes Startup Success, a weekly ezine. If
starting a new business or are in the early phases of entrepreneurship, get the
New Business Startup Kit free (including the Secrets of Successful Business
Owners audio) at www.askleahgrant.com