It’s crucial to understand your customer base from the outset. To do this, you can gather demographic information to better understand opportunities and limitations for gaining customers to start or grow your business. This could include population data on age, wealth, family, interests, or anything else that’s relevant for your business.
Then answer these questions to get a good sense of your market.
– Demand: Is there a desire for your product or service?
– Market size: How many people would be interested in your offering?
– Market saturation: How many similar options are already available?
– Pricing: What do potential customers pay for these alternatives?
You’ll also want to keep up with the latest small business trends. It’s important to gain a sense of the specific market share that will impact your profits.
You can do market research using existing sources, or you can do the research yourself and go direct to consumers.
Dr. Elijah Clark (June 14, 2021). Understanding customers [Web log post]. Retrieved from https://elijahclark.com/lesson-123/