Size – Generally, the smaller the customer is, the higher the risk of having to regularly replace them because of limited budgets and internal resources. If you are targeting the enterprise customer, then you have a reasonable chance for a longer term relationship by thinking big as there is often a dedicated resource to engage.
It is critical of course that your value proposition is strong, and that you also have knowledge and relationships to leverage to help you grow through your contacts.
Budgets – Working hard on your price point is important, just as valuable are your research efforts to target the market at a price within your customers budget.
Otherwise if your price positioning is wrong and you underestimate the wealth of the market you will have an ineffective product distribution – nobody can afford what you sell. You need to think about the budget your target customer will pay for your product or services.
Competition – Is the market swamped with competitors and alternatives, is it mature, is the market changing, etc.? Learn to read the market, is this the right time, what other variables need to change to open up a market?
Or what differentiators can you offer that nobody else has considered? Where is your sector or industry as a whole developing, especially locally is it based on price or quality? Do you have a competitor strategy (proactive, reactive, copy, run away, etc.)?
Segmentation – is the segment big enough to meet your sales goals yet not so big that your product will be lost? Can you realistically meet your sales goals with just this targeted segment? Who are your competitors (local, regional, national or International)?
Value proposition – take a hard look at the differentiators you offer, what is their benefit to the user? Can you measure and identify the value points? Do your have insight on whether buyers value the things that make you different from your competitors? Which groups are becoming opinion formers or influencers in your industry?
To discover more about how to develop your own start-up business idea contact us for a chat.