Top 5 Steps to Find Your Ideal business Market

Global B2B buy sell website: http://www.bytrade.com

 

Have you always dreamed of owning your own home business but never been able to figure out exactly what business it is? Does that innovative idea of yours often look so near--and yet so far? You're not alone. According to a survey by the Kauffman Center for Entrepreneurial Leadership in Kansas City, Mo., one in 12 Americans wants to start his or her own business, but only half succeed.

 

Here's a simple 5-step process to identify your ideal market segment

 

1)  Analyze your sales
Most businesses will find some semblance of an 80/20 rule behind their customer profitability: 20% of customers will drive 80% of the profits. Many a business owner has mistaken volume for profitability. Spending energy to find more of the 80% who are the least profitable is a recipe for disaster.  

2)    Analyze your non-customers
What percentage of your most profitable customer market do you already have? If you have 100% of that type of customer, spending money to find more of them will be fruitless. If you have only 5% of that market, you'll have a fabulous focus for your business plan.

3)  Do your research.

The internet is a powerful tool for extracting information in minutes. Make use of this powerful medium to research the list of potential business ideas you are interested in. Things to determine are:

a)     Is there a similar product or service already?

b)     Is there a market for this idea?

c)     Who are your customers?

d)     Who are the industry giants and how do they operate their businesses?

 

4)    Sift through your customer feedback and satisfaction surveys
A less obvious way to look at them is by analyzing the type of feedback they provide you when you ask. How extensive is their their product knowledge? How do they use your product? Do they share attitudes towards price or quality?

5)  Prepare a customer profile
Another way to think about customers is to profile their lifestyle, their values or their personality. Often these types of market segments are the most interesting and fun to pinpoint ('Professional Duets', 'Active Technocrats', 'Pacific Fusion') but they may also be the most difficult to target. Research is complex and expensive to identify them, and they may not be easy to find or reach

 

6）Never give up.

If the research and tasks seem too overwhelming, ask for help and divide them into smaller chunks. Get a core group of family or friends together to brainstorm, then divide up each idea or task into smaller, more manageable objectives. Nothing worthwhile comes without an investment of time and energy. Remind yourself of how much you want it and what the reward will be. As the Nike slogan goes, "Just do it!" You'll be glad you did.