Choosing your market is critical to choosing a business to get into
 

This is one of the hardest questions for most budding entrepreneurs to get through. As soon as you come up with a brainstorm, you find out that there are a million other businesses that do it that you didn't know about. When you do find that one seemingly perfect idea, your buddy brings up a few ideas that you never thought through like, it's not legal, or nobody would want that, or to get started would cost more money than you make in 10 years. OOOPS!

The trick to getting started is to look at what other people are doing that is successful and then build on that. The trick to getting your foot in the door is a bit different and makes you reevaluate everything that you have always been taught. Don't go after the big fish.

The smartest words I have ever heard about this are, "Pick the market that your competition is the least likely to defend, go after it, and do a better job."

You will have competition. It's a fact. And if you immediately go after the big lucrative customers, you can expect your competition to fight you for it. Instead, find the customers that your competition probably doesn't care about all that much, learn what they need and go after them.

Nobody will admit that they don't care about a certain number of their clients, but it is the truth. They will bend over backwards for the large client and expend a large amount of resources. But sometimes the small clients get virtually no attention at all. Their orders are placed as last priority, customer service cuts them short and the business only goes one way. I've run into small businesses that have basically been "go away, you bother me".

Few are to that extent, but you get the idea. If your competitor loses a large client, someone's head will roll. If they lose a small one, they may not even know about it for months and at worst, it's an annoyance.

Then of course, you have to figure out what it is that your market needs. Your market will choose "need" over "want" every time. Don't decide for yourself what they need though, ASK! If they cannot get what they need and you can provide it, you have an instant customer. If you can provide it and make them feel appreciated when your competitor doesn't, you are almost sure to keep that customer, even when your competitor comes calling. They have been down your competitors road before and remember it.


SeniorMag

Good Advice Gina...
 

I agree with you. There are always opportunities to take one industry/business and split it in two. You're right--every business has customer segments that really aren't a good match with their current vendor/supplier and these customers are looking for a solution to their problems that their current supplier isn't solving. That's where a new business can come in and make waves. This advice may seem like something for a business to business type operation but it is also applicable to the business to consumer market.

Take care,

Mike Winicki