This step involves a close analysis of your business.
Much like an investigative reporter, you need to
determine the who, what, where, when, and why of your
customer base. Ask yourself the following questions:
? Would your product or service appeal more to men,
women, or both genders equally?
? What age range does your product or service appeal
to? (Note: if your business sells products or services
for children, parents are your target demographic).
? What is the range of income and education level of
the people who may be interested in your product or
? Are they single? Married? With children? Retired?
? How will your customers use your products or
services? Is there a potential for repeat business?
? Does your product or service fall into the category
of needs (food, clothing, shelter) or wants (luxury
? What makes your product or service unique
? Is your product an impulse buy (books, shoes,
gourmet food) or an investment (cars, boats, computer
hardware or software)?
? How are transactions for your product or service
typically carried out — online, mail order, or in
person? Cash, check, or credit cards? A single
payment, multiple payments, or monthly recurring fees?
? How do your potential customers typically become
alerted to new products or services? Online, through
public advertisements, from the news media, or some
You may even want to develop a profile of your ideal
customer (for example, 20-30 year old single
college-educated females, or 40-50 year old married
males with middle-class incomes) to help you pinpoint
your target market.