The market

Answers to all those questions lead to the second basic factor you must consider when seriously evaluating a business idea: what is the market for the business you plan to start? Is there a need for what you plan to offer? Who will buy your product or service?

What characteristics best identify the general group or market to which your customers belong? Will you offer your wares to the general public or will your firm be a business-to-business effort? If it's business-to-business, can you narrow your target market to a specific industry? Or, is government – federal, state or local – the best potential group on which to focus? And, can you logically target a specific government office or agency as your market focus?

If your target market is the general public, how well can you identify the demographic characteristics of your prospective customers? Such factors as age, sex, household income, location, family status, education, and race or ethnicity are some of the descriptors by which members of your potential audience could be categorized and identified as likely prospects for your venture.

And, how far will your market range geographically? Markets can be as confined as neighborhoods and small towns. They can stretch across states and regions. Or, they could be national or international in scope. How far will your company go to reach its market?

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