Your market is not everybody, as so many small businesses assume. It is the people/organizations who need, want, have the money--and the willingness--to pay for what you are offering. Identifying them can be complicated and expensive, or it can be relatively painless and cheap.

How much do you need to know about them? Enough to have all the clues on how to reach them, and what to say, when you do. Finding your target is vital, so whatever method you choose, do it properly and test your assumptions.

Research

The best place to start is with what you already know. What does your company know about its clients? Do you already have a perfect client--the one you wish you had more of? Examine their demographics. Who are they, where are they, what are they spending, what are they earning, how many employees do they have? And any other information that may help you build a clear picture.

Now, identify what need your product or service is fulfilling. Who needs your product or service the most? What industry are they in? Where are they located and how can you reach them?

Further Research

Once you have exhausted your internal research, go further. Interview potential prospects. Ask questions that deal with the benefits you bring: Is there a need? Is there awareness of your type of offering? Try to identify any unfulfilled needs: price, service or other benefits. See if there are any weaknesses in the competition. If all those you survey are happy with their present supplier, you should ask yourself if is this the right target.

If you are targeting specific industries, read their trade magazines and investigate their associations. Associations often publish directories with statistics concerning their members. These can be found in your local library. Boards of trade put out listings of their members, divided into services provided.

Business directories are invaluable. They list businesses geographically and according to industry sector. They also give you the products offered, the number of employees, sales figures and the principles involved.

Armed with this information, you can survey a number of these potential targets to confirm they are in need of your benefits. Remember, these are not sales calls. Ask for 5 minutes of their time, and ask only non-sales questions. Simply gather data and thank them for their time. Resist pitching yourself.

You now have an idea of who your target is and where they are, but what are they thinking? How much do they know and what do they need to know? This brings you to the world of Psychographics.

Psychographics don