Customer Analysis: Every Business Resolves a Need
Customer analysis, in other words identifying the audience, their goals and characteristics, is one of the most important items in the business plan. Business is any activity in exchange for which money is received, and the person who pays you the fee is your customer; his or her money is the basis of your business.
Analyzing the customer means asking who your target customers are, and identifying their location, gender, average age, and other important demographic variables. The target market is determined either by geographical location or by the type of buyers. The owner of a supermarket thinks about the geographical area in his or her surroundings, but the baby stroller manufacturer provides the product throughout the country. While starting a business, the smaller you make your target market's location, the better results you achieve.
After identifying the target market, identify its needs. Latent needs are a part of the target market's needs. The products and services your competitors provide are the clear need of your target market. Every business resolves a need or improves the solutions for meeting a need. The jump point is to offer new products and services by identifying the consumers' potential needs or finding novel supply methods. Change in product is not always necessary. A different supply method often changes everything. Uber has not revolutionized the transportation system. Taxis already existed; they just changed the supply method, applied technology and facilitated the passenger's way to take a taxi.
If your business does not meet any need or offer an optimal solution for a problem, you must start to worry. In Canada, someone spent tens of thousands of dollars researching the poultry and egg industry to establish a poultry factory farm. He eventually realized that the area was saturated, so he dropped the case and prevented his million-dollar loss.