Setting Ambitious Goals

It's perfectly acceptable to establish "unreasonable" goals. While it may seem that only dreams can yield such aspirations, achieving them often just requires time and persistence. Conversely, setting modest goals is equally valid. Many individuals seek stability and peace of mind in their ventures, desiring a business that ensures they don't have to worry about their next meal.

If you find yourself in the middle ground, your target might be that elusive $10,000 monthly income. Imagine the lifestyle that could afford you! The freedom that accompanies such an income is enticing, and I share that ambition as well.

However, as previously mentioned, aligning your market choice with your goals is essential.

Identifying Your Target Market

To start, your target market should be easily identifiable. You could have a groundbreaking product designed for disabled beekeepers, but where do you find them? How will you promote your offering? Will you rely on beekeeping magazines or Facebook ads?

Consider the implications for your Cost-Per-Click (CPC). If your ads are shown to individuals who don't fit your target demographic, your expenses will rise without yielding returns.

My personal experience with targeting was when I launched a residential building management firm in Portugal. Initially, I thought advertising to all apartment owners was a brilliant idea. However, I soon realized that the target was too broad, leading me to refocus on specific locations, which escalated my CPC beyond sustainable levels. This scenario illustrates how a rising acquisition cost can undermine your marketing efforts.

Be Specific in Your Targeting

It's vital to be precise in identifying your audience. Narrow your focus based on interests and needs rather than broad categories, especially if you are not a brick-and-mortar establishment. Your advertisements should be so finely tuned that you can visualize your ideal client.

If you cannot define your target market's "avatar," it may not be the right market to pursue.

Opportunities for Upselling

A significant challenge I've encountered in my business is the absence of upsell opportunities. Ideally, your offerings should form a value ladder, allowing customers to ascend from lower-priced options to premium services, each providing more value.

For instance:

• Gym: Upsell from a basic membership to personal training sessions.
• Barbershop: Offer hair and beard care products.
• Accounting Firm: Provide premium packages with priority scheduling.
• Social Media Marketing Agency: Bundle services across multiple platforms.
• Supermarket: (Just kidding—if you own one, you probably already know this!)

Stickiness Factor

This concept is straightforward: if customers need to purchase your product repeatedly, your market is considered "sticky." Essentials like toothpaste, electricity, and internet services exemplify this.

It's not about monopolizing the market but rather ensuring that customers return, even if they don't buy the same product each time.

Navigating Needs vs. Wants

The ideal market should consist of customers who both want and need your product. In my building management business, many clients were obligated to hire management services but didn't necessarily desire them. This created a complex relationship where clients appreciated my service yet often felt they could manage on their own, which they could not.

The best clients are those who recognize the value of your service and are motivated to engage with it. For instance, someone who needs to go to the gym for health reasons but also desires to improve their fitness will likely be a more reliable client than someone who feels forced to go.