One of the first steps in developing a business plan is to determine your target market and why they would want to buy from you. You need to answer a few questions that will lay the foundation for your business plan.
Listed below are some tips to guide you in clarifying what your business offers, identifying your target market, and creating a niche for your business.
Be clear about your business offers
You need to answer this: Besides basic products or services, what else are you selling? Take this into account, in your city there are a handful of restaurants that are all selling the same product that is food. But each restaurant addresses a different customer need.
It could be that one is a self-service fast food restaurant; another perhaps caters to local delicacies in a country-style kitchen, while another may be a fine-dining restaurant specializing in wood-grilled dishes. All of these restaurants are selling food, but they are selling to a target customer who is looking for the unique qualities that a restaurant has to offer. But the reality is that they are selling a combination of product, value, atmosphere, and brand experience.
Make sure you understand what makes your business unique if you are starting your business. You have to know what needs your product or service covers. You need to establish the benefits and differentiators that will help your business stand out from the competition.
Learn to create strategies and discover 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 someone will like because this will have a negative impact on the growth of the business. For a smaller company, the best strategy is to be able to do a few important things very well rather than do a little of everything without having a full understanding of one thing. For starters, you can offer specialized products or services that can appeal to a specific group of potential buyers.
Distinguish your niche
For your business to be successful, it is important that you create your niche. Many business owners can easily identify a niche using their own knowledge of the market, but conducting a market survey with potential customers can go a long way in uncovering untapped needs. Here are some of the things you should identify during the research process:
- The areas in which your competitors already exist
- The areas that are neglected
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.
