Understanding your market is absolutely vital to developing a successful business. Knowing what your customers want will help you create products and tailor services that align closely with your sales strategies and inventory.
Knowing your market is also helpful for selling your business. Being able to explain to potential buyers the characteristics of the customers you serve and their potential for growth will be key in obtaining a favorable price for your business.
Packaging and Positioning: Update Your Market Analysis
It’s common sense. When investors look for a business to purchase, they want to know the business has a viable market. You will want to provide potential buyers current information about your market and customer base. When you developed your business plan, you likely went through a market analysis. This updated information is vital when you are ready to sell.
Your market analysis should include:
- A description of your ideal (or actual) client or customer, including demographic information, lifestyle preferences, income level, age, gender, and any other relevant information;
- Statistics regarding your industry overall, including growth rates, trends, and outlook; and
- Competition analysis, including an explanation of how your products or services differ from the competition
You do not necessarily have to write a report, but having all of this information to offer a buyer will make your business more compelling.
Incorporate Your Market Research
Even if you have not formally sent out surveys to potential customers or had focus groups, you have likely conducted market research without even realizing it. When presenting marketing information to prospective buyers, incorporate what you have learned over the years that you have been in business. Anyone can pull statistics regarding your industry, but only you can speak to unique insights in the business and what specific customers prefer.
Sit down and really think about your customers’ preferences. Consider a few specific repeat customers, for example. Answer the following questions about each of these customer personas.
- Which products/services does your customer repeatedly buy?
- Why does that customer get products or services from you instead of somewhere else?
- What does that customer value most about your product/service?
- What would drive that particular customer away from your business?
Incorporate any specific feedback that your customers have provided in your market analysis as well. Which marketing strategies have worked in the past? Why did they work? This will all be very valuable information for your business’s buyers.
If or when you are ready to sell, Tennessee Valley Group, Inc. can help you develop a market analysis to present to potential buyers. Learn more by contacting us today at 615-390-9966.
Tennessee Valley Group
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