Successful Blog

How to Define Your Niche Market

by 28 Comments

Yes! YES!

insideout logo

Let’s take a minute to go back over the foundation — two key understandings frame and support a well-defined niche market.

A business that cannot answer those two questions specifically and explicity will define a loose, untargeted niche market. The end result will be an unclear offer — probably too broad — to customers they don’t know.

If you can’t describe what you do and who your customer is in one simple sentence each, keep working on those questions above.

When you know them like you know yourself . . .

A niche market is the group that your prototype ideal customer represents. That’s why it’s critical that we define the prototype customer as well as we possibly can. Because now we’re going to extrapolate up.

You might think it’s a waste of time to prototype the ideal customer in the first place. STOP RIGHT THERE.

What gets lost by skipping that step is the information we acquire by deeply thinking about how one human in our customer group will respond. The loss is detail most folks won’t take time to think through in one step.

Yu can get details without the context of an individual human reference, but skip that step, you are stealing deep knowledge from yourself. If I tell you, if you read it, even when a real customer relates the buying experience, it is not the same as thinking through one customer’s identity yourself.

It’s you, you’re investing in.

It’s survival. If we don’t know our customers as well as ourselves, sooner or later, we will fail. I don’t need a coach to tell me how to do that. Neither do you.

How to Define Your Niche Market

Look at that ideal prototype customer. Find the group that he or she represents. Use the ideal customer to find that group’s needs, wants, and values. You know how to do that as sure as you know what things are everybody things and what things are your best friend’s idiosyncracies.

  • What is your ideal customer’s age group? Define an age range narrow enough to keep within a set of tastes and values. Spanning a 10-year age difference might work for undertakers, but probably will not for the needs of college students or new home buyers.
  • How is your ideal customer exactly like every member of the group? What needs does the group have in common? What do they all desire? How can you use your previous success — what you’ve already provided — to serve the larger group?
  • What is the group’s biggest worry? Is it the same as the ideal customer’s? What other issues does the group have?
  • What are the major ways that the group interacts? How do they communicate with each other? What secrets do they keep
  • What are the major ways that the group solves problems and finds answers?
  • How does this group define a good day? How do they define a bad one? What other groups do they get along with? What groups do they work with that they don’t understand?
  • What problem can you take off their desk? How can you save them time, money, or pain?

Picture the group in a meeting room. Have you accounted for everyone there? What part of the group will love your product or service as much as you do?

That’s your niche. That’s the customer you want to serve.

Next: The Four-Part Definition of a Business

–ME “Liz” Strauss
Is your business stuck? Check out the Start-up Strategy Package. Work with Liz!!

Related
To follow the entire series: Liz Strauss’ Inside-Out Thinking to Building a Solid Business, see the Successful Series Page.

A Model to Describe One Ideal Customer

by 9 Comments

Get Specific

insideout logo

Our ideal customers — those folks who love that businesslike thing we love doing, that we do to serve them — they are the foundation of our business. Pick one of them.

One? But the marketing guy said . . .

Yep. One — only one. Get specific. Get up close. Make it a real person. Crawl inside his or her head.

From one real human being with whom you have had a success, we can extrapolate many facets of what will and will not work for a business. Think of the one you choose as your prototype ideal customer. Use this model to get closer to whom that customer is.

A Model to Describe One Ideal Customer

Use these questions to make sure you are specific because we’re building a model.

  • What job or group does this person represent? (designers, new mothers, undertakers, college students, used car buyers)
  • What is this one person’s biggest worry, threat, thing that wakes him or her up at 2 in the morning?
  • How does this one person see him- or herself? What is the value that this one person thinks that he or she brings to the world?
  • What problem did you solve for this person? How long did it take? How would you value what you provided? How would he or she value it?

Answer these questions. Then write, record, or tell a friend a description of your prototype ideal customer. You’re ready to explore what he or she needs, desires, and wants.

We learn as writers that individual readers share common interests. We learn as marketers to meet each individual where he or she stands. I learned as a publisher that a well-defined prototype is exact and as explicit as possible. A strong prototype is like a single stone in the water — we can extrapolate it in rings to larger and larger views.

Who is your prototype customer? C’mon describe one for me.

Next: How to define your niche market, moving from one to a group.

–ME “Liz” Strauss
Is your business stuck? Check out the Start-up Strategy Package. Work with Liz!!

Related
To follow the entire series: Liz Strauss’ Inside-Out Thinking to Building a Solid Business, see the Successful Series Page.

The Ideal Customer Test

by 18 Comments

Pick One

inside-out thinking

Who is your customer? Before you answer, if you are going to say “small business owners,” STOP. You can’t build a business foundation trying to read 25 million minds at once. Small business owners is not a niche it’s a population.

In my presentation at SOBCon07, I had a single slide that said

Choose your customers.

I didn’t spend nearly enough time talking about those three words.

The key to a successful business is truly connecting with the ideal customers for the service or product we offer. The process starts by doing what we love, because doing what we love makes good business sense. The next step is to find the folks who love what we do.

How do we do that?

Look to your past successes. Who has come to you in the past for what you love doing and then loved what you provided?

Make a list of the people who have already loved what businesslike thing you love doing for them. Now you have some idea of who your ideal customer might be. Use this model to see who on that list passes the Ideal Customer Test.

Ideal Customer Test

  • The ideal customer is part of a group. You don’t really want customers who are loners. Let someone else sell to the hermits and the recluses.
  • The ideal customer’s group is relational. They don’t have to sing kum-ba-yah by the campfire. Lawyers are relational. They talk to each other and ask what works. Even corporate clients check out the competition and do horse trading.
  • The ideal customer wants to be better . . . to keep up with the folks at the front of the group.
  • The ideal customer has money and the potential to make more.
  • YOUR ideal customer looks a lot like YOU.

It’s true none of us are a field test or focus group, BUT, pay attention to that last point. If you are looking for the folks who love what you do . . .

Your ideal customer is likely to think, act, and respond like you, because it’s human nature to think people who think like we do are brilliantly smart.

That’s how our customers look like us.
That’s why they love what we do.

Skeptical — huh?
Try it this way It’s unlikely that an information geek is going to feel comfortable working with me. I’m just not linear. I’d send him to my friend. Greg Balanko-Dickson the Remote Control CEO. He’s a self-proclaimed information geek. The chart at the top of his blog shows the difference immediately. Greg does what he loves and the information geek would love what he does.

Do what you love in service to those who love what you do. —Steve Farber

Who loves what you do?

Next: Questions to Describe Your Ideal Customer

–ME “Liz” Strauss
Is your business stuck? Check out the Start-up Strategy Package. Work with Liz!!

Related
To follow the entire series: Liz Strauss’ Inside-Out Thinking to Building a Solid Business, see the Successful Series Page.

If You Don't Know What You Love Doing . . .

by 13 Comments

It’s Natural

inside-out thinking

Here’s how it often works. He says. She says.

I say, “Sure you do. You’re just not seeing it.”

If you’re stuck finding out, sorting out, what you love doing, my experience is that what you love doing is so obvious that you can’t believe it is worth counting. Let me tell you about Martha.

Ah Martha, her desk was like it belonged in a magazine. If she wasn’t in her office, folks thought she was out for the day. Everything had its place, and you could bet it was there. Soft-spoken, gracious Martha had a smile that lit up the department of 32 people and thousands of pages she kept track of. Marha was a sea of calm in a world of publishing paper clutter.

For her performance review. I asked Martha to do a self-appraisal. Martha reached outside herself to find many things that she did well and wrote them up in excellent fashion. All of the qualities I described above were missing.

When I asked her about it, she said, “Oh, anyone can do those things.”

I replied, “No, Martha, folks aren’t nearly as organized as you are, nor are they as calm and gracious.” That turned on her room-lighting smile.

I said “You love organizing things and all of us, don’t you?” Her larger smile told the story.

Martha didn’t see what she loved or her most valuable qualities. She discounted them because they were was something that was a natural talent. We tend to discount what comes naturally to us as not as valuable because we didn’t “earn” it. Yet, Martha’s talents were what kept my department working smoothly and without friction. To this day, I miss her.

She didn’t see it because it was obvious and so natural to her.

Yet everyone else knew how valuable her talents were to them.

Look to Your Second Nature

If you don’t know what you love doing, ask those folks who rely on you. Look at what you do as second nature. Think of those defining qualities and the things that you always do and would be nervous or bummed if you could no longer do them. I can’t imagine Martha not being allowed to organize things.

What can you not imagine yourself not being able to do?

Not long ago when talking with the other founders of SOBCon, I said, “I have to be the keeper of the vision.” I explained it in this way, “it’s not ego. It’s not about control or the name of my blog. It’s what I do. It’s what I’m good at. It’s in my DNA. I can’t NOT do it.”

What’s the thing you can’t NOT do? What’s imprinted on YOUR DNA?

C’mon and say it out loud.

–ME “Liz” Strauss
Is your business stuck? Check out the Start-up Strategy Package. Work with Liz!!

Related
To follow the entire series: Liz Strauss’ Inside-Out Thinking to Building a Solid Business, see the Successful Series Page.

1.2 WHY Doing What We Love Is Solid Business Thinking

by 27 Comments

Not Self-Indulgent, Good Business

inside-out thinking

Did I really mean to say the word? Yep.

Love. Not like, enjoy, or get kick out of, but have a passion for, live for, hold in highest esteem. Every person needs a quest, a cause, and a purpose.

That’s right. One — that one simple question.

What businesslike thing do you love doing?

is critical to your business.

Why?
Because it’s how we’re wired as humans. We bring our best to whatever challenge we face. We’re better when we’re inspired by deep feeling. We’ve known that since we were kids.

Any less is inauthentic, second-best, didn’t try, plan b, was absent that day, ho-hum, phone it in, stand in right field and let that pop-fly pass us by instead of saying the game . . . we might as well be out!

There’s a reason that so many folks — on TV, in IT, in academia, in every career — say the same thing. . . . find your passion, do what you love.

They’re not promoting self-indulgence. They’re supporting solid business sense.

WHY Doing What We Love Is Solid Business Thinking

What makes loving our work solid business thinking? Why is it more critical now than before?

In his book, A Whole New Mind, Dan Pink points out that “high concept” and “high touch” values (design, story, symphony, empathy, play, and meaning) have become as important as linear thinking, detailed analysis, and spreadsheets.

On his blog, Doc Searls recently said this about how business is doing. It was part of an interview with Shel Israel.

In the original website version of Cluetrain, Chris Locke wrote, “we are not seats or eyeballs or end users or consumers and our reach exceeds your grasp. deal with it.”
Recognizing a situation and dealing with it, however are two different things. The “dealing” has barely begun.

In this Internet, global economy we deal direct — no middle man. Conversation and relationships matter as much as schedule and budget do.

In plain and simple words, thinking and doing what everyone has thought and done no longer work. Now it’s think and love what we do — That’s the only way to draw customers to us.

Think hard. Thinking alone doesn’t solve every problem. Some problems are human. Some require empathy and finesse. Some situations call for more than intelligent reasoning. Before you talk yourself out of what you love doing . . . think about the reasons we need to bring all of yourself to your business — head and heart.

7 Reasons WHY Doing What We Love is Critical

When we bring all of who we are, full engagement of head and heart, we bring 7 deeper values and higher outcomes to our work.

  1. Complete presence — focus. We’re all there — the all thinking business is no longer sufficient. Computers can’t smile. Computers can’t listen to the spaces between words. People buy what we sell.

  2. Peak performance — productivity. We invest more, do more, go further for the work we love.

  3. Tolerance — perseverance. We have more patience, time, and energy for problem solving when we directly reap the benefits.

  4. Value and Appeal — compelling story. To compete a product or service has to be useful and beautiful. Simple and elegant, for to the adult and the kid in each one of us. Bringing logic and emotion to a business outdistances the world view of logic alone.

  5. Total Differentiation — identity. The uniqueness of our being shines through in concept and execution when we start from what we love.

  6. Fully Invested and Worth Investing In — market value. Rolling all of the above values into one, nothing beats the 360 degree investment of brains, money, and dreams all in the same direction. Any VC worth his or her salt looks for that combination when funding a small business.

  7. Sense of Worth — authority. We value what we earn and what we love.

Can you see why it’s only sense that a strong business is built on doing what we love?

Got questions yet?

Next: 1.3 WHAT IF you don’t know what you love to do?

–ME “Liz” Strauss
Is your business stuck? Check out the Start-up Strategy Package. Work with Liz!!

Related
To follow the entire series: Liz Strauss’ Inside-Out Thinking to Building a Solid Business, see the Successful Series Page.

No Mission Statement: One Simple Question

by 47 Comments

Enough

inside-out thinking

Last week a Dawud Miracle and I discussed the problems faced by businesses. We mentioned entrepreneurs, small businesses, even corporations. So much of what came up was not encouragaing — bad messages; bad service; empty offers; no customers; not unique or remarkable; broken promises; clueless and out of focus. Not much most folks would take a risk on.

It’s as if some folks “get,” and the rest don’t get to know.

People rush after productivity tools and use them to further confuse their issues. People wait for customers, and no one comes. They talk about the chances they never got, but that that doesn’t get them. They’re stuck.

Why should anyone be stuck? . . . overwhelmed and out of focus? Why are there problem solvers without problems to solve?

It’s a disconnect. A swiss cheese hole in the available information.

Voices across the Internet say . . . Find your passion. . . . Choose your target market. . . . BUT, they stop there. No one says HOW to do that.

It’s got to be frustrating.

This connector can’t stand to watch problems going unsolved. I’m for breaking OUT of this paradigm starting now — with tools, models, and some basic Inside-Out Thinking.

Inside-Out Thinking

What is Inside-Out Thinking? Plain and simple, it’s starting from you — head and heart — who you are, as a person or as a company. We’re going to the core to find the values on which to build a concrete foundation.

I’m not talking hours parsing words on mission statements that gather dust. Their pretty, but they don’t pay the bills. I’m talking key, core terms that tell about DOING.

Don’t think heaven or humanitarian honors. Forget making money or impressive words.

Please, answer to one simple question.

As a company, as a person,

What businesslike thing do you LOVE doing?

Here’s how to answer that:
Forget any thought of money. Don’t you dare devalue or discount what you love doing. Not sure? STOP. Quiet yourself. Remember your successes. Here’s where to look for them.

  • Look to the future. Three years from now, if a wealthy patron financed you, what would you be doing?
  • Look in the past.
  • Look at last Saturday or the last time you were with friends. What were you doing that might apply?
  • What about your favorite job? What did you love about that?
  • What were you really good at in school?
  • What are you good at? What would you miss if you couldn’t do it?

You get the idea.

If you don’t know how to complete the picture of you. Ask a friend to tell you what you love doing. Ask quite a few. They know. Truth is, so do you. Once you find out what you love doing, that’s when the thinking starts.

I’m getting jazzed about this.

So, go ahead, give it a shot . . . what do YOU love doing?

It’s not hard. It’s just different — there wasn’t a model before. There will be now.

–ME “Liz” Strauss
Is your business stuck? Check out the Start-up Strategy Package. Work with Liz!!

Related
To follow the entire series: Liz Strauss’ Inside-Out Thinking to Building a Solid Business, see the Successful Series Page.