This is part 1/9 of the Write Your Business Plan Series: Part 4: (*4*) Your Business Plan Series.
Getting to know your customers is one of the most significant things an entrepreneur must do, and writing a business plan will assist you to focus on this key element of your business.
The point is, if you do not understand your customer, you do not know if your product or service is actually something people will spend money on. You won’t know what form of marketing message and promoting will work. You’ll be dead in the water. Here are 4 key inquiries to ask yourself to find out who your ideal customer is:
- Who they are? Describe them in terms of age, income, activities, interests and opinions.
- What are they buying now? Describe their purchasing habits related to what you ought to sell: how much they buy, what their favorite brands are, the hottest features and the price points that are acceptable to them.
- Why do they buy? This is difficult and requires some psychology.
- Is all of it about value for that buyer? Is top quality a key factor in purchasing decisions? Are they willing to spend more because of the perceived status symbol of certain brands?
Understanding the reasons behind your customer’s purchasing decisions will assist you to create targeted marketing campaigns and even adapt and modify your product to fulfill their needs. The key query you are trying to answer is: what exactly will make them buy from you?
Read on to learn more about promoting your business to investors and customers, or order a copy of Write Your Business Plan from the Entrepreneur.com bookstore.