Identify the Ideal Customer Profile

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In researching a market it’s important to identify the ideal customer profile.

The ideal customer is the one who is best suited to buy your product or service.

A startup should focus on finding and selling to ideal customers instead of selling to anyone.

Here are the steps to identify your ideal customer profile:

Review your customers to identify the characteristics of the best ones.

List out their characteristics including:

What problem are they solving?

What size budget do they have to solve the problem?

What else do they bring such as education, experience, or training?

What position do they hold in their company?

Interview ideal customer candidates for the following:

What do they read?

Where do they hang out?

What are their overall goals?

What attracts them to events, content, or networks?

What do they not want?

What networks do they join?

What other activities do they engage in?

Combine the answers into an ideal customer profile that you can use for your sales and marketing activities.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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How To Size the Market

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Sizing the market is a key step in researching an industry.

Follow these steps to size the market for your startup.

Define the total available market which is anyone you can sell your product to.

Next, define the total serviceable market which is the segment of the market you can reach.

Then define the total serviceable obtainable market which is the portion of that market you can win.

With this information, you can calculate your market volume which is the number of transactions you can generate.

First, calculate the penetration rate which is the number of customers divided by the market size times 100.

For example, if you sell to grocery stores in a state, then your penetration rate is the number of stores you currently sell divided by the total number of stores in the state times 100.

Now calculate market value which is found by multiplying the average sale per grocery store by the number of stores you have.

If you sold $20K per year to a store and you are in 100 stores, then your market value is $2M.

Finally, segment your market into logical groupings.

In our example, we could divide the stores by geography and treat the stores in each direction such as north, south, east, and west as a separate segment.

Use these steps to calculate your market size, volume, and value.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

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Analyze Industry Trends

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

When conducting market research for your startup, it's crucial to differentiate between primary and secondary research.

Primary research involves gathering data directly from individuals, which provides firsthand insights into customer experiences and needs.

It helps you understand the target audience through methods such as interviews, focus groups, surveys, and observation.

Secondary research relies on existing studies and reports, enabling you to quickly gather industry information.

It allows you to analyze trends, benchmark competitors, and identify gaps that your startup could address.

Here are some key steps for conducting your market research:

Start with primary research by interviewing potential customers to gather their insights.

Conduct focus groups to obtain deeper opinions on your product concepts.

Utilize surveys to quantify customer preferences and behaviors.

Complement this with secondary research by reviewing industry analyst reports and studies relevant to your market segment.

Analyze the combined data to identify key trends, challenges, and opportunities that inform your business strategy.

Once you've gathered and analyzed the information, develop a dual approach using both primary and secondary research to refine your product and go-to-market strategy.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.