If you want
to grow a large, profitable business then it is important to understand the
size of your market. Do you really know how big your market is for your
business?
The key
factors to knowing how large your market is include:
·
Analyzing
the current markets condition
·
Understanding
how large your market is
·
Identifying
how the market is growing
·
Knowing
how fast your market is growing
·
Seeking
out the potential profit growth in your market
If your
potential market is small you can understandably see how this is going to
reduce your business growth. You have limits on what and who you can sell to.
On the other hand if your market is large, this provides you with almost endless
growth and the potential of increased profits.
To estimate
your market size you need to perform some research. Finding information about
any particular market or industry is not that difficult. You can use online
research or your local library to uncover facts and figures.
It may be
helpful to use a source such as the U.S. Bureau of the Census. This is a great
way to identify demographical statistics in certain categories. You can search
by age, income, number of children and more.
Other ways
to research your market is to run your own surveys and polls. By asking
specific questions you can identify all types of information about your market.
This includes their needs, their problems and more.
Once you
have this information collected you can use it in several ways. It can help you
identify a specific need or gap in the market. Or it might show you what types
of products or services are needed.
By tracking
your own statistics you can get a good idea of how fast or slow your market is
growing. You can then act on this information accordingly.
If you
consistently keep your eye on your market you can get a good insight into their
needs. One way to do this is by hanging out in the same places as your target
market. This may include visiting the same Facebook pages or groups that they
do. Or visiting online forums or even local community events.
Once you
have a good understanding of who your target market is, it will be much easier
to see how large your market is. Plus you can identify the type of profit potential
this market has for your business.
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