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E-Myth – “Why most small businesses don’t work & what to do about it”

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Virtual CFO | Learning Who Should a New Businesses Target Market Be

 

Understanding the target market of a business can be very confusing says virtual CFO. And while many entrepreneurs think that getting in front of as many people as possible is a valid strategy. This is not going to be how entrepreneurs are able to get a return on their investment of marketing.

Therefore, business owners need to get help from their virtual CFO in order to help figure out who their target market should be. And how they are going to reach all of their ideal and likely buyers. When business owners create their business plan with this in mind. They’re going to be far more likely to succeed then entrepreneurs who have not done this research ahead of time.

In fact, Palo Alto, the software company wanted to know it’s business plans truly affected the success of a business. They did a survey and found out that entrepreneurs that had business plans. We’re 50% more likely to increase their revenue. Then businesses without a business plan at all.

Therefore, entrepreneurs should understand that all of the work that they put into researching their business plan. Is going to pay off by helping them increase their revenue. And succeed in their business.

However, many entrepreneurs don’t know how to choose their target markets. And end up with an incorrect Market for them to be going after. The biggest mistake according to Virtual CFO. Is that business owners try to think that’s their target market is a lot larger than it actually is.

Many entrepreneurs believed that buy marketing to as many people as possible once can help them increase their business by increasing the number of people who know about their business.

When in fact a much more efficient strategy according to Virtual CFO. Is marketing to a much smaller number of people. But consistently doing it several times. In fact, consumers tend to need to see an entrepreneur’s business 4.3 times before they will purchase from it.

Large corporations understand this need for brand recognition. Which is why they continue to Market their business. Even though they have the majority of the Market share. By continuing to get the message out. They can continue to increase their revenue. Which is the same concept that entrepreneurs of small businesses need to implement?

However, they need to implement this strategy on a much smaller scale. Rather than try to get a large percentage of a large target market. People should go for a much larger market share of a much smaller target market.

When does are able to start seeing a return on their investment from a small area. That increased Revenue will allow them to increase their advertising budgets. And go after a larger target market. So that they continue to grow the revenue in their business and succeed.

The sooner an entrepreneur can do this in their business. The sooner they’re going to grow the revenue in their business. And the sooner they are going to overcome the significant odds that they face as a small business owner in Canada.

Virtual CFO | Learning Who Should a New Businesses Target Market Be

The reason why people needs to figure out the target market send virtual CFO. Is because it’s going to influence the rest of the marketing plan. As well as influence the rest of their business plan as well. The sooner business owners are able to understand who their target market is going to be when they open the doors to their business. The last time an entrepreneur is going to waste getting to those ideal unlikely customers.

In fact, the number one reason why businesses in Canada fail is that they are unable to find customers for their business. Industry Canada did a survey and found that half of all entrepreneurs failed. And 42% of the failed entrepreneurs said that the reason why they failed. Is because they were unable to find enough customers for their business.

Therefore, the importance of identifying the target market cannot be overstated says virtual CFO. Because it can make or break the effectiveness of an entrepreneur’s marketing plan. When entrepreneurs are able to understand on a very deep level who their target market is. They will be able to not only markets to them. But markets to the consistently enough.

It’s not just enough for business owners to get in front of their ideal and likely clients once. But they need to get in front of them consistently. An average of 4.3 times before they are called to action.

And even after an entrepreneur has marketed to them an average of 5 * says virtual CFO. That was not guaranteeing that every single customer they marketed to actually saw what they were advertising. Therefore, a business owner needs to understand that the more consistent they are. And the longer amount of time the markets to their target market. The more success they will have.

It may seem backward. That’s in order to generate more revenue in a business. An entrepreneur must Market to a smaller amount of people. But virtual CFO says that this is an incredibly effective strategy. And the size of the market is small. Is important because an entrepreneur will either have to spend their own money or their own time to Market to their ideal unlikely customers. And a business owner will have very little of both.

Which is why it’s important that the target market area is small. Because it will fall within and entrepreneurs’ budgets. And it will be easier for a business owner to markets to personally. If they’re going to save money and spend their time finding their ideal and likely buyers.

The sooner business owner understands who their target market is says virtual CFO. And the sooner they’re going to be able to start generating results and increasing their revenue. Business owners don’t have to be stuck marketing to a small area forever. As they generate more Revenue. They will be able to spend more money on advertising. And gradually increase their target market area.