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Determine the size of your market

        Evaluate market trends

        Pulling it all together: Target Market

      Time-Saving Tools

       You’ll complete this section more quickly if you have any of the following handy:

       Maps of your target market area if you have a brick-and-mortar business

       Customer surveys

       Market research reports

       Industry research indicating market trends

       Books, magazines, and other media geared toward your target market

       Census data showing customer demographics

      Step

      Target Market

      Your success rides on your ability to meet the needs and desires of your customers. In Step 3, identify these customers—not the specific people or businesses, but the types of customers you expect to serve. This is your target market.

      Your goal is to assure readers of your Business Plan that:

       These customers do exist

       You know exactly who they are and what they want

       There are enough of them to support your business

       They’re ready for what you have to offer and will actually buy

      Paint a clear and detailed portrait of your customers—who they are, where they’re located, how they think, why they buy, and what they want. This makes it easier to show how you plan to respond to their needs.

       KEY TO SUCCESS

      Creating a Credible Market Definition

      A strong target market definition is:

       Definable. It identifies the specific characteristics potential customers have in common.

       Meaningful. These characteristics directly relate to purchasing decisions.

       Sizable. The number of those potential customers is large enough to sustain your business.

       Reachable. You can affordably and effectively market to them.

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