Who do you appeal to and whom does your business cater to. One of the mistakes I made starting out in my business was trying to cater to all sorts of people and offering all types of services. I realized that I spread myself thin after some time and the spade of services I was offering was irrelevant to the vast demography I was aiming for. Long story short, it wasn’t working because I was making an amateur mistake. It was not too long ago that I started to focus my resources into core fields where I could really provide value, ecommerce solutions, web development, online marketing and technology consulting to growing business. So I had boiled down my services, the next was to define my market. As I mentioned initially I wanted to work with everyone and that only left me open to working with individuals who had a semblance of an idea about what they wanted to do without a realistic thought on capital or the resources needed. I was building complicated websites for $300 and $500; these projects would take me a month or 2 months, fortunately I was in school.
Though with time I developed my skillset, finished my schooling, and realized that doing business at the level I was in was a recipe for disaster. I was providing a $5000 service for $300 and that was not going to pay the bills. So I made a pivot and started to focus on growing business, and those who had put some thought into what they wanted. This accomplished 2 things. One, it freed up my time, whereby I was helping my clients crystallize their unformed ideas, now I was now freed up to plan out a proper project that’ll accomplish need of my better focused client. Second, the demography I was targeting was more realistic in terms of their goals, potential costs, and was far easier to work with.
Define your targets
There were some lessons learned, a growing business has to define and target its market. With the target market defined the next goal is to reach out to that group. Some resource should be spent on researching other potential markets, but there shouldn’t be any resources spent on undefined groups. Because when a growing business starts to spend on undefined groups, there’ s a higher percentage of waste. There’s a concept of the 80/20 rule, which follows that 20 percent of your customer base will produce 80 percent of your revenue. The other 80 percent then are not in your zone. Additional the cost to retain the customer outside of your 20% zone in the long run may not be sustainable, so focus on the 20.
Sell the value to your target customer
Now appealing to your customer is easier when they find value in your product, or better yet, when they can find value in your product or service. To do that, it helps to align with your customers in terms of presentation and service level. That base that needs your product or service will find value upon engaging your provisions, but there is a larger group that may not yet understand your value. It is this group that resources should be spent on to help them see your value and once they see your value they will be the key to your growth into the next level. Once on that next level wash, rinse and repeat. The new elevation brings with it a new set customer group.