If your answer is, “Yes, Heck yeah, Absolutely, or For sure!”, then there are 3 very important questions that you must ask yourself before you get started.
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Is there a Need or Problem that exists?
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Can my Business, Product, or Service fulfill this need or solve this problem?
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Are people willing to pay to get this need met or this problem solved?
Just by answering these 3 questions, you’ve identified a target market. Now, don’t get discouraged if you don’t quite understand.
Here’s an example:
- Is there a need? ( Yes. People need food.)
- Can my Business fulfill this need? ( Yes. I make food, really good food!)
- Are people willing to pay for it? ( Yes, all of the time!)
Therefore, my target market would be the food industry. Since this has a very broad array of customers, I would have to narrow things down quite a bit.
When you get to this point, start looking at things like, where your business is located, how many potential customers are in that area, what their demographics are and what their purchasing power is. Once you get these narrowed down ,this will be your niche market. .
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Keywords
A niche market is the specific group of customers that you focus on selling to.
A target market is the specific market that your business focuses on to sell to.
Demographics are specific characteristics that describe customers, for instance, age-group, income level, purchasing power, consumption patterns, locality, etc.
