Analyzing Customers in Your Business Plan

The Customer Analysis section of the business plan assesses the customer segments that the company serves. In it, the company must 1) identify its target customers, 2) convey the needs of these customers, and 3) show how its products and services satisfy these needs.

The first step of the Customer Analysis is to define exactly which customers the company is serving. This requires specificity. It is not adequate to say the company is targeting small businesses, for example, because there are several million of these types of customers. Rather, the plan must identify precisely the customers it is serving, such as small businesses with 10 to 50 employees based in large metropolitan cities on the West Coast.

Once the plan has clearly identified and defined the company's target customers, it is necessary to explain the demographics of these customers. Questions to be answered include: 1) how many potential customers fit the given definition? is this customer base growing or decreasing? 2) what is the average revenues/income of these customers? and 3) where are these customers geographically based?

After explaining customer demographics, the plan must detail the needs of these customers. Conveying customer needs could take the form of past actions (X% have purchased a similar product in the past), future projections (when interviewed, X% said that they would purchase product/service Y) and/or implications (because X% use a product/service which our product/service enhances/replaces, then X% need our product/service).

The business plan must also detail the drivers of customer decision-making. Sample questions to answer include: 1) Do customers find price to be more important than the quality of the product or service? and 2) are customers looking for the highest level of reliability, or will they have their own support and just seek a basic level of service?

There is one last critical step in the Customer Analysis -- showing an understanding of the actual decision-making process. Examples of questions to be answered here include: 1) will the customer consult others in their organization/family before making a decision?, 2) will the customer seek multiple bids? and 3) will the product/service require significant operational changes (e.g., will the customer have to invest time to learn new technologies? will the product/service cause other members within the organization to lose their jobs? etc.).

It is essential to truly understand customers to develop a successful business and marketing strategy. As such, sophisticated investors require comprehensive profiles of a company's target customers. By spending the time to research and analyze your target customers, you will develop both enhance your business strategy and funding success.

As President of growthink business plans, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.

Oswego taxi to Midway ..
In The News:

Hackers and scammers keep looking for ways to break into your Facebook account. Kurt “CyberGuy" Knutsson has some tips to make sure your account is secure.
Kurt “CyberGuy" Knutsson shows you how to create group texts to reach multiple people at once — and also how to leave them if you get annoyed at the volume of interruptions.
Tax fraud is on the rise, and hackers are now using identity hijacking and artificial intelligence for tax returns in someone else's name to get a refund.
Toyota's Punyo soft robot mimics human behavior, using its chest, hips and arms — in addition to its hands — like a human to handle objects,
Hackers used third-party information to break into Roku accounts, according to the streaming company. Roku says it has secured affected accounts.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Kurt "CyberGuy" Knutsson explains the simple steps for setting a Wi-Fi hot spot on an Android. If you have internet on your phone, it's easy.
Dubai recently hosted the first jet suit race with a backdrop of skyscrapers, and one observer says it was straight out of a comic book.
Kim Komando introduces ways to keep you and your devices safe while traveling. The clever hacks mentioned can protect you from hackers and jackers.
TikTok CEO Shou Chew published a video Wednesday urging users to "protect your constitutional rights" against a bipartisan bill that would force China to divest from the app.
Tech guru Kurt "CyberGuy" Knutsson says you can never be too careful with tech passwords. He explains how to keep your information safe.
The Lighthouse in New Zealand rotates 360 degrees, constantly giving those inside different views around the clock. Built in the 1990s, it's up for sale.
High school students in Colorado are learning how to design their own AI model projects, including cameras for self-driving cars and apps that can teach other languages.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Vehicles collect sensitive personal information, which is used to set auto insurance rates. That's partly why auto insurance premiums are rising.
Honda's Uni-One is a hands-free electric mobility device that can reach speeds of 3.7 mph and support a user weighing up to 242 pounds.
Kim Komando puts three AI chatbots head-to-head to decide which is the best assistant for modern problems. Compare Google Gemini, ChatGPT, and Perplexity.
To safeguard personal information on iPhones, users can employ built-in security measures and iCloud Keychain for enhanced privacy. Kurt “CyberGuy" Knutsson shows you how.
Kurt “CyberGuy" Knutsson introduces you to the City Transformer’s CT-2 electric car, which can seamlessly transition from 8 feet wide on the road to a compact 3 feet for parking.
Hackers are always looking for new ways to trick targets into downloading malware. Now, they're after cryptocurrency folks via Calendly. Kurt “CyberGuy" Knutsson has the details.
Kurt “CyberGuy" Knutsson reveals how the Microlino Lite, a compact and eco-friendly vehicle, tackles city traffic congestion with its chic design and small dimensions.
A new funeral scam targets surviving family members of those who recently died. Scammers reach out to the survivors and pose as funeral home officials.
Merlin Labs' autonomous pilot could soon hit the commercial airways and may help alleviate a looming pilot shortage, according to CEO Matt George.
There's a simple way to check your subscriptions on an Android and cancel them. Tech guru Kurt "CyberGuy" Knutsson explains how it is done.
Hackers use pirated software to target macOS, Android and Windows devices in search of stealing cryptocurrency, according to Kurt "CyberGuy" Knutsson.

Mini-Blind Cleaning Business, Case Study

Sometimes the simple businesses are the ones, which make good... Read More

Freelance Tips: How to Cope with Spring Fever When Theres Work to Be Done

We all know how glorious those first warm days of... Read More

The Key to a Successful Business

Where would a business be without a business plan? A... Read More

Small Business Pricing Strategies

TACTIC #1 -- Never simply slash your prices, unless you're... Read More

Do You Own Your Business Or Does It Own You?

What was your aim when you went into business for... Read More

Small Business - Is The Accounting Profession Ripping Them Off?

My 16 year-old daughter said, "Gee Dad! You look just... Read More

Small Business CRM Is Here To Stay

If you ask most small business owners what priority CRM... Read More

Making Your Product Desirable For Alliance Partners

How do you make sure you have the business solutions... Read More

Eight Key Steps to Selling Your Business and Cashing In

This year, some 700,000 American businesses will be sold. Most... Read More

6 Steps to a Successful Medical Spa Expansion

According to the American Society for Aesthetic Plastic Surgery, since... Read More

The Truth About Government Grants for Your Business

Free money! Receive up to $25,000 that never has to... Read More

Firing Underperforming Employees in Your Small Business

Here are a few tips on how to hand out... Read More

Starting a New Business in a Small Town

Q. I am a former pastor who left the ministry... Read More

Alliances: What works, what does not

Why Alliances FailWhen do you know an alliance is falling... Read More

7 Habits of Highly Successful Small Business Owners

Do you spend every waking minute in your business? Do... Read More

Get Approved for a Franchise

Deciding to start your own franchise is just one of... Read More

Sexual Harassment - Its just not on!

Sexual Harassment is a disturbing part of employment life in... Read More

Window Cleaning Business Future Challenge With Self Cleaning Glass

Self-cleaning glass has been talked about a lot, with such... Read More

Business Reviews that Work

What is the satisfaction & expectation review of the business... Read More

Trailblazer Interview with Diane J. Levin, Partnering Solutions

Today is a Red Letter Day! It's special because today... Read More

Starting An E-Commerce Business: Baby Steps

Starting your own e-commerce business can be quite the adventure.... Read More

Forming a Corporation ? Investors

You've come up with the best idea since sliced bread,... Read More

Business Plans - What Consultants Don?t tell You!

Do you have a Business Plan? Congratulations, but you are... Read More

Starting Your Small Business

Where do you find more customers?How do you compete with... Read More

Effectively Completing the Operations Plan Section of Your Business Plan

The Operations Plan is a critical component of any business... Read More

shuttle from Midway Morris ..