Now you have used your core values to figure out a business idea. The next thing now is to know the best market for this idea you have.
I know you have come up with lot of lovely ideas but before you finally decide on the one you want to go with, there are some vital details to note.
I am bored a lot of people’s choices of businesses they plan to start in this part of the world. These days you hear things like….
I want to sell clothes
I want to bake wedding and birthday cakes
I want to open a makeup shop
I want to be a graphics and web designer
I want to be an home tutor
I want to be a fashion designer
I want to sell beauty products
I want to be a blogger
I want to open a poultry.
i want to be a third party data reseller
I want to sell snacks and small chops
Blah Blah Blah
Hear me now.
There is absolutely nothing wrong with all of these as businesses. Afterall, some people have made names and lot of money doing them.
My problem with doing these businesses is that every Tom, Dick and Harry is doing them and if you want to be successful, You shouldn’t be doing what others are doing.
There should be a twist to how you do yours. You need to stand apart. You need to show everybody you are special in the way you do yours.
To be successful in any business at all, you first have to be a very good student of your market i.e. the people you plan to sell to.
Your market is the most important part of your business and not your product because it is the funnel that brings in the money.
The mistake most small business owners make is to first create a product and start looking for its market. They put in so much time and energy in creating a product and when it is time to sell, all they hear is…………..
Let’s say you have decided to become a caterer who bakes wedding and birthday cakes, cooks tantalizing dishes, fries small chops and makes ‘calm down food dey come‘ dishes for events.
You enrolled in a catering school and brought all the equipments to start your own business then you remember nobody knows you have become a caterer so you start looking for people who want to get married.
You even logged into your Facebook account and started writing out all your friends and family members dates of birth in a note and pasted your new achievement all over the world like this…
“Do you have an upcoming event where you need a caterer? Heavenly Catering service is here for you.”
You pasted it everywhere that everyone who sees it in real life continued your new hit movie in dreamland and because you have put in a lot of time and energy to become a caterer, you become disappointed you are not recieving the market you have dreamt about.
As a smart small business owner, It shouldn’t be like that every time. A smart entrepreneur is a very good student of his market. Not the product or the service. Not the skills, techniques or the knowledge you have acquired. It isn’t also how to buy space.
Now of course, all these things are very important and you must learn them but the first ever thing you should understand is your ideal future market and what they really want to buy from you.
So now you are asking, “Who should be my ideal future market?“, If your market is not all of the things you are about to read now, it should have at least 2 features.
Your Market Must be Large
Honestly, you don’t have to sell to the whole country. it isn’t what I mean by being large. A large market is one that a considerable big size.
If you plan to open a restaurant for instance, your ideal position won’t be located in a residential area because I don’t know why people will leave their houses and come to your restaurant to eat.
You will want to find a place where you know there is little or no reason why people should prepare their meals all by themselves.
You get what I mean now? Good.
Let’s move on.
Your Market Must be Rich
When it comes to this, your need to understand that your ideal future market have the money to spend. You won’t plan to open your exotic restaurant around a university campus but you will want an area where you have the working class.
You really need to know how entrepreneurs make their money. Entrepreneurs make money in 2 ways…
- They sell to a large market for little amount per product or service
- They sell to a small market for huge amount per product or service
There are businesses surviving decades with only a few rich customers. You don’t have to be a businessman of the whole wide world. Sometimes you just need a few rich clients.
Heard of Yomi casual, the popular Nigerian celebrity fashion designer? He is one cleaver guy who understands this.
Your Market Must Be Scalable
Your market must be one that can be made to become large. If you decide to introduce another product, you know your market is able to accommodate it even if it is new to them.
It should be capable to expand easily. You can scale up your market to suit whatever product or service you plan to crate in future.
If you keep creating products to sell, your ideal market should be the one that will always demand for it.
Your Market Must Be Starving
As funny as the word “starving” sounds in qualifying a market, it is still the best kind of market to make money from because you won’t have to spend much work and money on advertising and marketing.
Since you already have a hungry market for a product, all you need to do is to create the product and put it in front of their noses. You will now have to make sure there isn’t a stampede. Lol.
When you have a starving market, your product will be on high demand and most times, they don’t think before they buy and that is exactly what you want for a successful business. Walahi.
How many times have you debated to recharge airtime on your mobile phone or subscribe for a data plan?
Even if these telecom guys decided today to knock out adverts for some days, they will still earn what they usually earn because you need their services more than their adverts. So who cares?
Now ask yourself. Is my ideal future market starving for my product? If Yes, good. If No, look for a product they are hungry to have and create it or find means to make them hungry. This is where marketing comes in. You should check other marketing articles that talks about this.
Your Market Must Be Easy To Reach Via Advertising
Can you reach them easily if you plan to advertise your products or services? Is it easy to inform them about what you sell? Can I reach them locally or online easily?
As this seems not to be that important, it is very very important.
The Lady caterer I used earlier as an example even after having no market to sell to must have her ideal market as one she can easily reach out to. Where she will find people in need of her services.
Nobody wants to create something and later realise there is absolutely no easy way to reach out to the market that needs it.
So ask yourself again. Is my market reachable?
Your Market Must Be Increasing
This is for me the most important. Maybe it is because it works well for my kind of business.
My business deals with softwares and hardwares generally. People everyday buy new gadgets. There are individuals and businesses springing up daily to have a running websites or a mobile app.
My market is an increasing one and there is no tendency it will run out yet even as the world keeps going deeper into the ICT era.
Your market should be a growing one. There should’t be any tendency of your market running low.
Now check if your market will still be in existence in the nest 2 years, 5 years, 10 years.
Don’t forget I made known your market necessarily don’t have to have all these qualities. But it is important to see at least 2 of them in your ideal future market if you want a very high rate of success as a small business owner.
We both know you dont have all the money in the world and you are only trying to manage the little you have.
So be the smartest entrepreneur your small business needs.
Let me know your thoughts about this lessons. What do you think you need to do now that you know this? Don’t forget to share with everyone you know needs this too.