Week 07: Customers

This week we're going to focus on your customers, but lets start by working out how your customers will see you.

What kind of company are you?

Primary Co. Type = Meaning
B2B = You sell mainly to other businesses
B2C = You sell mainly to individuals

Secondary Co. Type = Meaning
Retail = You sell products that someone else has made
Manufacturing = You make products
Service = You do something for your customers
Knowledge = You provide your expertise to your customers

Fuller descriptions are provided in the book, Start Your Business Week by Week.

Next, what industry are you in? The food industry, the fashion industry, the ball bearing industry?

Finally, what marketplace are you in? This is the most customer-centred question of all, because it is how the customer sees you and your real competitors. Again, the book explains this in more detail.

So you might be a B2C service company in the rail industry (say, operating trains between Edinburgh and London), but your customers see you in the transport marketplace - which includes coaches, aeroplanes, and their own cars. But some of your customers might see you in the communication marketplace, with your competitor being video-conferencing, as opposed to travelling to a meeting.

Have a good, long hard think about which marketplaces your customers will see you in - you might come to some suprising findings that will influence your whole business plan.

Become an Expert

Now you know what kind of company you are, and what marketplace(s) you operate in, you should spend as much time as possible finding out about your industry and your marketplace. Follow the steps described in the book.

Look for your customers

You understand now how your target customers will see you, and what benefits you may have in their eyes over your competitors. Now you need to work backwards from this to find out who your target customers are. The book has lots of ideas of how to do this, and it's worth taking some time to work through them.

Your Business Plan

Last week you actually began the first section of your business plan when you wrote that page off A4 about your business. That wasn't too frightening was it? People get awfully nervous when you start talking about writing a business, plan, but if we take it week by week it'll be fine.

This week you can write up your findings on customers to form the 'Customers' section off your plan. Again the book explains how.

Find some accountants

In the same way you asked people for their recommendations of bank managers a few weeks ago, now is the time to start finding out about local accountants. Book some meetings with ones you hear good reviews of.
| This week we're going to focus on your customers, but lets start by working out how your customers will see you.

What kind of company are you?