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Sep 14

Study The Market

Posted by: Steve Marr

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Every successful business has customers. The challenge is to identify your specific target market by careful analysis and study. King Solomon wrote, “It is not good for a person to be without knowledge, and he who makes haste with his feet errs” (Proverbs 19:2, NASB).


A CPA, specializing in tax returns, moved into a small town of 2,000 people not currently serviced by a tax accountant. He believed that by becoming the only accountant in town, the entire market would be his; all he had to do was move there and open an office. Unfortunately, he made the mistake of not carefully reviewing the market. First, he didn’t have 2,000 “customers.” Given the average of three people in a household, he really had only 650 customers.


Next, most of the people who lived in the small town filed their own returns and were not potential customers for a CPA. Of the 650 “customers,” only 175 used any tax service and most of those used a low cost service because their tax work was simple. Of the 2,000 “customers,” only 35 needed a CPA — too small a market to support the practice.

Steve Marr, Your Christian Business Coach

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