Write Your Business Plan | Part 4 Overview Video Identify viable ideas and get them in front of the right customers and investors.
By David James
Getting to know your customers is one of the most important things an entrepreneur needs to do, and writing a business plan will help you focus on this key component of your business.
Because here's the thing, if you don't understand your customer, then you don't know if your product or service is actually something people will spend money on. You won't know what kind of marketing messages and advertising will work. You'll be dead in the water. So here are four key questions to ask yourself to help you pinpoint who your ideal customer is:
- Who are they? Describe them in terms of their age, income, activities, interests, and opinions.
- What do they buy now? Describe their buying habits related to what you're hoping to sell: How much they buy, their favorite brands, the most popular features, and the price points they're comfortable with.
- Why do they buy? This is a tricky one and requires a little psychology.
- Is it all about value for this buyer? Is high quality the key factor for 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 help you create targeted marketing campaigns and even adapt and modify your product to meet their needs. The key question you're looking to answer is this: What specifically will make them buy from you?
Read on to learn more about marketing your business to investors and customers or order a copy of Write Your Business Plan from the Entrepreneur.com bookstore.
