Michigan’s entrepreneurial ecosystem has grown immensely over the past five years (STAT). EntryPoint doesn’t only want to see the number of companies increase, but we would like to see those companies flourish. EntryPoint guest blogger, Matthew Gira, Founder at FounderCo, saw an opportunity to help founders start at the basics and learn how to be founders. His company helps founders build their businesses with practical, hands-on content. The content they provide is based on the main questions founders have to ask themselves prior to growing their business and one of those is target market.
Guest Post by Matthew Gira, Founder, FounderCo
As a startup, determining your target market is crucial in every aspect of your business. From marketing strategies to product development, if you can’t define who your target market is, your business can’t move forward in an effective way.
In the workshop below, we go over why determining your target market is important, how to narrow your market, and then how to use your target market.
As you go through the workshop, here are some tips that might be helpful:
- Create assumptions of why your company provides value for your customers and then validate those assumptions. It’s okay to not know exactly what your value proposition is out of the gate. Write down a few different ways your product or service might be valuable and then match that value proposition to potential customers. You might just have one value proposition and one target market or you may have several of each. Match them up, and then go validate those assumptions by talking with customers.
- Start with defining other competitor’s target markets. It can be hard to see your own company objectively. However, it’s a lot easier to see someone else’s business objectively. If you’re struggling with defining your target market and creating assumptions around it, start by doing the same process with competitors or lookalike companies.
- Your target market is humans – assumptions and their needs will change. It can be really easy to define your target market, set this information somewhere else, and then forget all about who your target market. You should be consistently updating and validating assumptions about your target market though. The more you know them, the better you’ll be able to market and develop solutions.