What is your market?

You've got a great skill, or idea for a product or service, but will it sell? Do you really know who will buy it, where, and at what price?

Now, some people make a lot of money through having an idea that just takes off, but most of us don't have that luxury, and for us researching and understanding our market is a sure way to reduce the risk of disappointment.

Me too

The fact is, most small businesses are offering 'me too' products or services into an existing market.

This is true whether you are a trades-person, a small manufacturer, a service provider, or in a profession.

There will be plenty of other people around who are offering to do what you do: some of them do very well at it, while others just muddle along.

Better than the average

And surely you want to make some decent money: you want to be the best in your territory, or at least better than the average.

Successful entrepreneurs have the skills to differentiate themselves from the herd, and to know where to look for the jobs with the highest margins. They don't see themselves as 'average'. They, like you, want to build a successful enterprise.

Know your market

Segment your market by putting your potential clients into categories in which the requirements are similar:  identify the segments that yield the highest margins, and especially the ones that offer repeat business.

For example, as a trades-person your segments might be: low-value private dwellings; high-value private dwellings; residential blocks; commercial properties; industrial properties; government buildings; new builds etc. 

You can then see which of these segments will deliver the high margins and provide you with a steady flow of repeat work.

Then get the map out and mark off where these higher value opportunities might be. Define your territory so that you are not wasting too much time on the road.

Finally, look at what the really successful businesses are doing in your market and learn from them; Google them; study trade journals and local magazines - anything that will give you a feel for where you can build success with your special product or service .

High-end business

Now you have researched your market, you understand what and where your high-margin market opportunity is, you can start on your marketing - identify these high-end clients and go after them.

Stick to your territory and don't get side-tracked into accepting a full order book from the low end of the market. You'll not get rich by doing that.