Although it sounds simple, one of the biggest keys to success as an entrepreneur is knowing your customer base. Who are you trying to reach with your products and services? Drafting a customer persona is extremely helpful in helping you answer this question.
With a customer persona, you create an imaginary person who represents the demographics your business serves the most. Age, gender, income level, education level, family status, and hobbies are some typical examples of customer demographics. Creating a product first and then trying to figure out who will buy it is often a recipe for financial disaster.
Why is Knowing Your Customer So Important?
The whole reason most people go into business in the first place is to create a new or better product or service that surpasses what the competition offers. People won’t buy from you if you cannot provide a more innovative solution to their problem at a competitive price. When people can no longer solve an issue on their own, they are willing to pay money for someone else to do it for them.
That brings up the second thing you must know as an entrepreneur. What problem do you hope to solve for people? Consumers will know you can provide the solution they are lacking when you follow the marketing process described below.
Describe the problem that your product or service addresses and the root cause for it.
Offer free tips that will help people start addressing their issue.
Describe your product or service as the best solution for eliminating the problem entirely.
Gather evidence from other customers that your product or service works just as you said it did and use those testimonials in future marketing efforts.
Are You an Entrepreneur Looking for Additional Financing Options?
Market research is necessary to get to know your customers, but it also requires access to capital that you may not have yet. GM Capital Group offers several flexible options to help finance your activities as an entrepreneur. Please request a consultation to learn more.