Recognize Factors Impacting Your Business
Before we can begin to put into action the business concept we have been working on, there are several key factors that we need to analyze first. These factors will play a huge role in the fate of your business so unless we come equipped, we may find our business being shot down without it having taken off, yet.
We may have a sound concept but unless we can support this with a solid structure, the chances of it getting off ground are slim to none.
Demographics and Psychographics
One of the things that we first have to check prior to concretizing our business concept is the market. Who is our target audience? What is their background and what is their behavioural pattern when it comes to their purchasing ability? The market is a major determining factor in the industry we wish to penetrate.
The demographics of our market will tell us what their social background is. Finding out their income level, age, gender, sources of income, educational background and even location; will help us determine whether they have the capacity to patronize our product or service.
Psychographics will tell us the lifestyle of our market. We can learn about their interests and activities; and from these data we can surmise if they will be interested in what we are offering; and if our product or service will fit right into their lifestyle.
Analyzing all these factors will help us determine if we are targeting the right audience.
Competition and Competitors
These two factors actually go hand-in-hand. Knowing who you’re competing against will give you a good idea of all key players in the industry that you have to watch out for. How long have they been in the business? What is the market response to their products or services?
Competing with giants may be a bit intimidating in the beginning but if you have a better product or service to offer, more efficient staff, excellent customer service, better rapport with your market; the chances of you getting ahead are very promising.
Competition of course inspires us to do better than the rest of the players in our field and it also motivates us to stay focused in our pursuit of excellence. Studying the behaviour of our competition will equip us with useful information that we can use to market our business, penetrate the industry and be seen as worthy opponent rather than just another flash-in-the-pan.