Many entrepreneurs and small-business owners spend too much time focused on their product or service and not enough time on finding the right market opportunity. Without the right customers, you won't have revenues, profits or much chance of success. It's important to ask yourself these questions to determine if you are going after the right market:
1. How many customers are in the market? Don't assume that just because there is a big market that you'll find your customers later.
2. Can these customers pay for your products or services? Focusing on customers with larger budgets and more cash flow will increase your likelihood of success.
3. Do these customers have the need you solve? If they are currently using a work-around solution that works, that may be enough for them.
4. How many competitors are competing for your customers’ business? Saturated markets are more difficult to penetrate.
5. How does your business compare to your competitors? If you have to compete on price instead of additional value, your odds of success are low.
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