Who will buy your product?
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Even if you intend on selling a product service only within your own community, you won't be . Defining your target market is key to your business plan and your new business.
Learn how to write the Market Analysis section of the business plan. For example, if your target audience is your current boss, the sales team leader.
Their motivation might be two-fold: 1) move up to the next position in the business, which is probably regional sales manager or a similar position and 2) more free time to spend with his or her growing family.
For example, if you are interested in determining the best age group, don't mix seniors with teens. A sample target market profile focusing on demographics might read, "Male teens with parents who are college-educated and have incomes above $50,".
You know that defining a target audience is a business best practice. But defining a target audience is a best practice for anyone that needs others to give them something.
It might be a salary, an investment or money in exchange for a product or service.
To define a target market for your business plan, you should research the potential buying audience for your product. This could range from millions of people if you are starting an online business, to a few thousand individuals if you are opening a retail store in a small town.