•The number of employees

•The specific needs of those who will use their product or service

•How purchasing decisions are made and who makes them

•Purchasing policy, including buying volume and seasonal buying patterns.

It is important not to identify your market as everyone and anyone. It’s difficult, and expensive, to let everyone know about your product or service. It is better, by far, to find the people most likely to buy your product or service.

As you look around there are lots of other companies vying for your customer’s attention. Your goal is to create value, a reflection of worth rather than cost. This is where you have to differentiate yourself. If there is no difference between you and the next guy, it all comes down to price.

As mentioned, it is also important to understand what the competition is.

In addition to the competition, it is useful to understand the bigger industry you are playing in as well as

What business are you really in?

What are the relative strengths and weaknesses of your company?

What are the strengths and weaknesses of your products/services?

What are your company’s goals?

Identifying Strengths and Weaknesses

Company image

Products and services (including price)

Benefits to customers

The cost of producing these products or services

Management skills

Human resources

Business location

Facilities and equipment

Financial situation, including financing, cash flow and net profits

Setting Company Goals

Unrealistic vs. Realistic Inconsistent vs. Consistent Not Specific vs. Specific Not measurable vs. Measurable

To be successful make sure your goals are Realistic, Consistent, Specific and Measurable. It sounds easy but, it requires careful thought and honesty.

Analyzing the Market

In order to analyze the potential for your business, you need to answer some questions/requests to determine the data and methods you use to achieve your business goals.

1. What do you estimate the total market--in terms of numbers of prospective buyers and dollars--to be for your product or service?

2. If your business can be broken down into different categories, list the total market for each of these categories.

3. Has the market continued to grow over the last 5 to 10 years

4. State the growth as a percentage or total dollar volume. How does it relate to your business?

5. Are there any demographic trends to support your business concept?

6, Have there been any shifts in the economy that will likely make your Business prosper?

7. How will you attract and keep your customers?

8. How are you going to price your product or service, to make a fair profit, and at the same time, be competitive? 9. Will someone pay your price?

10. How can you expand your market?

11. Who are your targeted customers?

12. Within these targeted customers, who is typically the buying decision maker?

13. How large does the potential market have to be in the location you chose to set up your business?

14. What kinds of needs do your customers have and how will you meet them?

15. What kind of distribution is critical to the success of your business?

16. Will you offer credit to your customers (accounts receivable)? If so, is this really necessary? Can you afford to extend credit? Can you afford bad debts? Will your business be accessible through the Internet?

These are just some of the questions that need answers

Now you have to assess and examine your place in the market and the growth opportunities. There are two key components to understanding the market: knowing your customers and knowing your competition. Research information on both customers and competition is essential to creating an effective marketing plan.

Simply put, a market is a group of people with wants, needs, values, expectations, money to spend and the willingness to spend it. They will exchange their money for products and services for one of three reasons:

•To satisfy basic needs

•To solve problems

•To make themselves (or someone else) feel good.

It is most important to know your customers and potential customers and then give them what they want. In order to sell to customers you need to know:

•Where they live

•Their age and gender

•Their occupation and level of education

•Their family size and description

•Their income (particularly disposable income)

•Their wants, needs, current buying habits

•How they spend their leisure time

When selling to another business, you need to know:

•The type of business and location

•Its products, services and annual sales volume

•The number of employees

•The specific needs of those who will use their product or service

•How purchasing decisions are made and who makes them

•Purchasing policy, including buying volume and seasonal buying patterns.

It is important not to identify your market as everyone and anyone. It’s difficult, and expensive, to let everyone know about your product or service. It is better, by far, to find the people most likely to buy your product or service.

As you look around there are lots of other companies vying for your customer’s attention. Your goal is to create value, a reflection of worth rather than cost. This is where you have to differentiate yourself. If there is no difference between you and the next guy, it all comes down to price.

As mentioned, it is also important to understand what the competition is.

In addition to the competition, it is useful to understand the bigger industry you are playing in as well as

Analyzing the Market

In order to analyze the potential for your business, you need to answer some questions/requests to determine the data and methods you use to achieve your business goals.

1. What do you estimate the total market--in terms of numbers of prospective buyers and dollars--to be for your product or service?

2. If your business can be broken down into different categories, list the total market for each of these categories.

3. Has the market continued to grow over the last 5 to 10 years

4. State the growth as a percentage or total dollar volume. How does it relate to your business?

5. Are there any demographic trends to support your business concept?

6, Have there been any shifts in the economy that will likely make your Business prosper?

7. How will you attract and keep your customers?

8. How are you going to price your product or service, to make a fair profit, and at the same time, be competitive? 9. Will someone pay your price?

10. How can you expand your market?

11. Who are your targeted customers?

12. Within these targeted customers, who is typically the buying decision maker?

13. How large does the potential market have to be in the location you chose to set up your business?

14. What kinds of needs do your customers have and how will you meet them?

15. What kind of distribution is critical to the success of your business?

16. Will you offer credit to your customers (accounts receivable)? If so, is this really necessary? Can you afford to extend credit? Can you afford bad debts? Will your business be accessible through the Internet?

These are just some of the questions that need answers

Now you have to assess and examine your place in the market and the growth opportunities. There are two key components to understanding the market: knowing your customers and knowing your competition. Research information on both customers and competition is essential to creating an effective marketing plan.

Simply put, a market is a group of people with wants, needs, values, expectations, money to spend and the willingness to spend it. They will exchange their money for products and services for one of three reasons:

•To satisfy basic needs

•To solve problems

•To make themselves (or someone else) feel good.

It is most important to know your customers and potential customers and then give them what they want. In order to sell to customers you need to know:

•Where they live

•Their age and gender

•Their occupation and level of education

•Their family size and description

•Their income (particularly disposable income)

•Their wants, needs, current buying habits

•How they spend their leisure time

When selling to another business, you need to know:

•The type of business and location

•Its products, services and annual sales volume

•The number of employees

•The specific needs of those who will use their product or service

•How purchasing decisions are made and who makes them

•Purchasing policy, including buying volume and seasonal buying patterns.

It is important not to identify your market as everyone and anyone. It’s difficult, and expensive, to let everyone know about your product or service. It is better, by far, to find the people most likely to buy your product or service.

As you look around there are lots of other companies vying for your customer’s attention. Your goal is to create value, a reflection of worth rather than cost. This is where you have to differentiate yourself. If there is no difference between you and the next guy, it all comes down to price.

As mentioned, it is also important to understand what the competition is.

In addition to the competition, it is useful to understand the bigger industry you are playing in as well as

10. How can you expand your market?

11. Who are your targeted customers?

12. Within these targeted customers, who is typically the buying decision maker?

13. How large does the potential market have to be in the location you chose to set up your business?

14. What kinds of needs do your customers have and how will you meet them?

15. What kind of distribution is critical to the success of your business?

16. Will you offer credit to your customers (accounts receivable)? If so, is this really necessary? Can you afford to extend credit? Can you afford bad debts? Will your business be accessible through the Internet?

These are just some of the questions that need answers

Now you have to assess and examine your place in the market and the growth opportunities. There are two key components to understanding the market: knowing your customers and knowing your competition. Research information on both customers and competition is essential to creating an effective marketing plan.

Simply put, a market is a group of people with wants, needs, values, expectations, money to spend and the willingness to spend it. They will exchange their money for products and services for one of three reasons:

•To satisfy basic needs

•To solve problems

•To make themselves (or someone else) feel good.

It is most important to know your customers and potential customers and then give them what they want. In order to sell to customers you need to know:

•Where they live

•Their age and gender

•Their occupation and level of education

•Their family size and description

•Their income (particularly disposable income)

•Their wants, needs, current buying habits

•How they spend their leisure time

When selling to another business, you need to know:

•The type of business and location

•Its products, services and annual sales volume

•The number of employees

•The specific needs of those who will use their product or service

•How purchasing decisions are made and who makes them

•Purchasing policy, including buying volume and seasonal buying patterns.

It is important not to identify your market as everyone and anyone. It’s difficult, and expensive, to let everyone know about your product or service. It is better, by far, to find the people most likely to buy your product or service.

As you look around there are lots of other companies vying for your customer’s attention. Your goal is to create value, a reflection of worth rather than cost. This is where you have to differentiate yourself. If there is no difference between you and the next guy, it all comes down to price.

As mentioned, it is also important to understand what the competition is.

In addition to the competition, it is useful to understand the bigger industry you are playing in as well as

Simply put, a market is a group of people with wants, needs, values, expectations, money to spend and the willingness to spend it. They will exchange their money for products and services for one of three reasons:

•To satisfy basic needs

•To solve problems

•To make themselves (or someone else) feel good.

It is most important to know your customers and potential customers and then give them what they want. In order to sell to customers you need to know:

•Where they live

•Their age and gender

•Their occupation and level of education

•Their family size and description

•Their income (particularly disposable income)

•Their wants, needs, current buying habits

•How they spend their leisure time

When selling to another business, you need to know:

•The type of business and location

•Its products, services and annual sales volume

•The number of employees

•The specific needs of those who will use their product or service

•How purchasing decisions are made and who makes them

•Purchasing policy, including buying volume and seasonal buying patterns.

It is important not to identify your market as everyone and anyone. It’s difficult, and expensive, to let everyone know about your product or service. It is better, by far, to find the people most likely to buy your product or service.

As you look around there are lots of other companies vying for your customer’s attention. Your goal is to create value, a reflection of worth rather than cost. This is where you have to differentiate yourself. If there is no difference between you and the next guy, it all comes down to price.

As mentioned, it is also important to understand what the competition is.

In addition to the competition, it is useful to understand the bigger industry you are playing in as well as

•The number of employees

•The specific needs of those who will use their product or service

•How purchasing decisions are made and who makes them

•Purchasing policy, including buying volume and seasonal buying patterns.

It is important not to identify your market as everyone and anyone. It’s difficult, and expensive, to let everyone know about your product or service. It is better, by far, to find the people most likely to buy your product or service.

As you look around there are lots of other companies vying for your customer’s attention. Your goal is to create value, a reflection of worth rather than cost. This is where you have to differentiate yourself. If there is no difference between you and the next guy, it all comes down to price.

As mentioned, it is also important to understand what the competition is.

In addition to the competition, it is useful to understand the bigger industry you are playing in as well as the environmental and regulatory climate.

Once you have chosen your target market and understand the landscape, how do you fit in? The easiest way to find out is to take a snapshot--- a SWOT analysis (strengths, weaknesses, opportunities and threats). Included in this should be:

•A cost analysis—what does it cost you to deliver the product or service?

•What are the financial resources and constraints of the company?

•What are your distinctive assets and liabilities?

•What strategic questions do you have?

There are other issues you must address including asking “What does the company stand for”? Clearly it is there to make money, but money is the byproduct of a well-run organization. A company that understands and operates from an ethical core will produce a sustainable business with satisfied customers, fulfilled employees, industry respect and the potential to do great things.