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Customers
It is important to be thorough and specific when creating a
description of the target customer for your product or
service. This description defines the characteristics of the
people you want to sell to and should indicate, among other
things, whether your customers are cost or quality conscious,
under what circumstances they buy, and what types of concerns they
have. If you have an existing business, list your current
customers and the trend in your sales to them.
To create a customer definition, describe your target customers in
terms of common identifiable characteristics. For example, a
catering company could target professional couples in the metro
Chicago area who need to hire caterers for their kids' parties.
Or it could target corporate event planners in Massachusetts
responsible for procuring caterers for internal meetings. A
windshield wiper blade business can sell directly to automobile
manufacturers, or to aftermarket parts distributors.
Tips
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Narrow the field by briefly describing customers you don't want to
reach. High-end general contracting services would not have
people who buy on price as customers. An association management
consulting service might not be interested in selling to
associations with 1,000 or more members.
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A common mistake is to describe customers in general terms, such
as all "people who want to buy a bicycle," or "anyone who needs a
resume created." To avoid this stumbling block, use the Customer
Profile Worksheet to make a list of the characteristics of the
people or companies that will buy your product or service.
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Be sure to include details of what geographic region you plan to
sell to. Is your market national, regional, international, or
local?
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Do not use industry jargon or regional slang that may confuse readers; if you must, define these terms in your business plan.
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