There are many details that you must handle when starting a business. However, if you want to get off on the right foot, there are three main points that you have to address and keep in mind as you move forward. These are your target market, business location, and business valuation. These three things relate to every other aspect of your business, which is why they are so important.
Your target market is the group of people who are most likely to be your customers. To find your target market, you have to define the different demographics of the group. This could include income level, ethnicity, age, gender, location and even details like whether they have kids or pets, whether they own or rent their home and if they own a vehicle. The more information you have on your target market, the better.
You should develop a target market profile. You may benefit from a business or marketing course from MVU Online to help you with this, but in general, it should be detailed. You want to avoid generalizations. Don’t create a target market that is too huge, like women between the ages of 20 and 45. Try to be as specific as possible, like married women in their late 20s with a bachelor’s degree who own a car, live in a rental and have at least one child. This can then be used when developing your products or services and creating marketing materials.
One thing to keep in mind is that you don’t want to assume things about your target market. The information you gather should come from research. It should also consider trends. For example, if you simply assume your target market for diapers is married women in their late 20s, you could be wrong. In fact, a more likely target market may be single women in their mid-30s. It all depends on what is currently happening. So, do your research carefully.
Your business location is something that is very difficult to change, so you have to make this decision very carefully. You shouldn’t just jump at the first available location. Make sure that it suits your needs in every way. This includes being sure it has the traffic available to provide you with a good customer flow, that there is no competitor nearby and that it is easily accessible.
Knowing the value of your business will be very important as you work to obtain funding. Valuation is explained by Northeastern in a helpful infographic that you should look over to get a better understand of what it is. It can be tricky to value your business when it is a startup, but if you approach it by looking at the value of all the parts of the business instead of the monetary value of the business, it can help. Things like brand recognition, a good location, and a solid customer base all add value to your business.
Only through solidifying your target market, business location, and business valuation can you really have a firm foundation for your business. These three things will affect everything about the success of your business.