Do you know what business you are in? Who is your ideal client? So many of the business owners and entrepreneurs I coach struggle to answer these questions. They give me an answer that is not thought through. Let’s look at as a Dentist as an example. The Dentist says they are in the business of Dentistry and their ideal client is anyone who needs work on their teeth. This answer is way too general. They don’t really know what business they are in.
How to Identify What Business You Are In
To know what business you are in, you need to get specific. Answer the following questions:
- Are you business-to-business or business-to-consumer?
- What are your key products and services?
- Whose problems are your product and services solving?
- How do your products and services solve these people’s problems?
- What is the ONE thing that best represents what your business is about?
Answering these questions will give you a clear idea of what business you are really in. It helps give you the clarity you need to focus on the things that can make your business grow. I’ll use this podcast as an example.
I decided this podcast is about helping entrepreneurs and business people to a new level by helping them thrive in both their business AND personal lives. That’s what sets me apart. I give both business and personal tools because I look to help the whole person.
Once you figure out what business you are in, you have to identify your ideal client.
A Three-Step Approach to Figuring Out Your Ideal Client
I’ve developed a three-step approach to figuring out an ideal client.
1 – Identify the type of customers who would provide the highest margin
This type of customer is not the bargain shopper who only buys when there is a discount. Your high-margin customers are the ones who make you the most money with each purchase. They are buying the highest ticket items or service packages.
2 – Determine if there are enough of these type of customers to sustain your business
Once you finish step one, you have to do some market research and figure out if enough of these types of customers actually exist. You can’t market to everyone, but you do need a big enough pool of customers to make a profit. Digital marketing can help on this front by allowing your ideal customers who are out of your physical market.
3 – Figure out if your product or service provides the best solution on the market for their needs
Analyze your competition and honestly assess how your product or service is of better quality than them. What is your unique selling proposition? Put all of your focus on making your products and services the highest quality possible.
Don’t Get Blockbustered
Blockbuster was a monster company that was growing everywhere in 2000. By 2014, virtually all Blockbusters closed. Why did this massive business fail? They forgot the broader business they were in.
Blockbuster was in the business of convenience. You went to a Blockbuster to be able to rent a movie and enjoy it at your house without paying the full price for a VHS or DVD. This worked until Netflix came around. Going all the way to a Blockbuster was no longer convenient. They remained committed to their retail model, though, and it ended up killing their business.
The most important asset to your business is you. A business coach can help you figure out how to best use your talents to grow your business. Schedule a consultation with Titanium Success today to figure out what business you’re in.