Always consider the financial capacity of your target audience before setting up your business.

[Fidelia]

One thing that some business people fail to do is to understand the financial capacity of their target market in deciding the best business model.

A woman came to site a luxury boutique in a location that is 90% average earners. In this her boutique, one T shirt is solf for $40. And the people in that location can't afford those kinds of T- shirts. The boutique is about to pack up for lack of patronage.

Understand the financial capacity of your target market and offer them what their capacity can carry.

 

[eLdavis]

When setting up a business, it is very important you know your target audience. This includes the class of people you would be marketing your business to and where to find them.

 

[King Belieal]

When setting up a business, it is very important you know your target audience. This includes the class of people you would be marketing your business to and where to find them.

You have to know the class of persons that make up your market, so that you would not end up producing for a wrong market. Don't assume. Just find out what their financial strength is.

 

[Starmix]

That's a wrong plan for the business owner. She failed to conduct a feasibility study if her business could be sold out by the people in the community.

 

[King Belieal]

People have to understand that business is not run on assumptions but on established facts. Failing to know the capacity of your target market is you running the business on assumptions and it won't fly.

 

[kerryjoy]

You're right, skipping a feasibility study was a misstep. It would have shown if demand existed in the community for her product, preventing a potential sales flop.

 

[King Belieal]

When you produce beyond the capacity of the available market, you would be forced to sell your superior products at a reduced prevailing market pricing which would surely crash your business.

 

[Stardom22]

In the matter of fact, the location of the business should always be influenced by the market for the business. Therefore the financial capabilities for the targeted audience should be considered very well.

 

[King Belieal]

In the matter of fact, the location of the business should always be influenced by the market for the business. Therefore the financial capabilities for the targeted audience should be considered very well.

That's quite true. Every location has the level it can afford of a particular product or service. Studying and understanding that would help the business stay right on track with what they present to the target market.

 

[Springtime]

It is important to understand the financial capacity of your target audience so that you know what kind of products suit them and at what price level.

 

[Kross]

I think a good procedure of market segmentation can work this out. You have to understand market segments and what works for each segment. Then, you decide which of the segments you are producing for.

 

[Augusta]

That's a wrong plan for the business owner. She failed to conduct a feasibility study if her business could be sold out by the people in the community.

Yes mate that's the whole essence of case or feasibility study. Go and assess your target market before starting out.

 

[Starmix]

Yes mate that's the whole essence of case or feasibility study. Go and assess your target market before starting out.

They want to make money instantly in the wrong way leading them to distress for losing millions. They have to be sensitive.

 

[freelancermaria]

Yes. If you like to attract wealthy consumers, it is essential to secure a prime location. Conversely, if you position your business in an area primarily frequented by average or below-average income earners and still plan to sell luxury brands like LV and Hermes, the probability of your business booming is relatively low.

 

[Fidelia]

Most of the business losses stem from the fact that business owners don't understand their market before they produce. The market from one city to another is quite different and that should always be considered.

 

[King Belieal]

Yes. If you like to attract wealthy consumers, it is essential to secure a prime location. Conversely, if you position your business in an area primarily frequented by average or below-average income earners and still plan to sell luxury brands like LV and Hermes, the probability of your business booming is relatively low.

That's just the basics. For a targeted elite market, site your business around Reserved Areas. It would fly from that kind of location.

 

[Augusta]

If your business is not targeted at the rich then try to check out the purchasing power of your audience then tailor your prices to meet their standard.

 

[SilverLance]

Adjusting your products to match what your target market can afford makes it easier to draw in and keep customers. This will create a loyal customer base and also also guarantees a consistent flow of income for your business.

 

[King Belieal]

It is very important to know that markets in different locations are not the same. Selling with a general assumption would render your business in ruins.

 

[Nomad]

If you want to sell to niche market, you do not have to worry about your product price but if you want to sell to the masses, you need to lower your price