Both business and marketing plans take a lot of time and effort to develop and implement. To complete a full “Strategic Focus Business and Marketing Plan” is a major undertaking, and the future of a business is dependent both on its content and the accountability factor built into the plan.
This past week I had the opportunity to participate in a discussion which focused on identifying the “ideal target market”. The discussion was not centered on a specific type of business, but it was an attempt to establish a basic foundation for any type of business.
Two major factors were identified as the basis in the selection process:
- NEED: the selected target market has to have a need for the product or service that is being offered. The “depth” of the need should also be considered. The depth is determined by the benefits that the target market receives by using the product or service. The overall analysis must also include a study of “competitors” who are offering the same or similar services.
- BOTOM LINE PROFIT: a budget is the building block for determining profit. Unless there is a “substantial” profit when a product/service is delivered to a target market, then it is not worth delivering. Even within an identified target market there may be different levels. For example, a discount retailer will pay less for product than a high end retailer. The cost to manufacture the product may be the same, but the best bottom line profit will come by selling to the high end retailer. This theme carries on to the size of a business. A small business may not be able to pay as much for a service or product and may not fully understand the benefits of that products or service.
The message I want to deliver is that chasing a prospect that doesn’t fully understand the need and can’t afford to pay enough to reach your financial goals is not worth chasing.
Technology allows any small company to appear big when chasing after an ideal target market. The effort put forth to reach the less profitable target may be greater or at least equal to the effort required to reach the better market.
The moral of this story is to plan according to the need of the target market and your bottom line profit. Remember, it’s good to be in business for yourself but not by yourself. The cost of a trusted advisor (coach/mentor) is the best investment you can make to help grow and succeed in a business.
When opportunity comes, it’s too late to prepare. John Wooden
Nick J. Petra CFP Invest in your future, contact Strategic Duck today! www.strategicduck.com
Make it a better tomorrow by subscribing to this blog.