by James Himm Mitchell
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:
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.