Business Planning - Pillar 2: Your Market

You’ve got your idea. Now comes the big question: who’s it for?

This is where so many new businesses stumble. They get excited about their product or service, but they never stop to define who their market really is. Without that clarity, even the best idea risks falling flat.

Here’s the thing: knowing your market and your demographics will actually help you define your offering. The better you understand your customers—who they are, where they are, and what they care about—the easier it becomes to shape your product or service to meet their needs. In other words, your market doesn’t just influence how you sell; it also guides what you sell and how you deliver it.

Understanding your market isn’t just about knowing your customers. It shapes your entire business plan—the way you deliver, the way you price, even the way you grow.

Why Your Market Matters

Your market is more than “people who might buy my product.” It’s the specific group of people or businesses who:

• Have the problem you’re solving.

• Value the way you’re solving it.

• Are within reach of your delivery or service area.

• Are willing (and able) to pay for it.

Get this right, and everything else—operations, financial planning, even your marketing strategy—becomes easier.

Who’s in Your Market?

Start by asking: who are my customers, really?

• Demographics: Age, gender, income, occupation.

• Location: What region or area will you realistically work in?

• Lifestyle and values: What matters to them? Convenience? Price? Quality? Sustainability?

Example: A plumber in Wellington doesn’t need to target “anyone in New Zealand who owns a house.” Their market is homeowners, landlords, and property managers in their service area—probably within 30–40 minutes’ drive.

The sharper you are here, the less money and energy you waste chasing people who were never going to buy from you.

Why Do They Need You?

Customers don’t buy products or services—they buy solutions.

Ask yourself:

• What pain are they dealing with right now?

• How are they solving it without me?

• Why is my solution the better choice?

For example:

• A florist’s customer isn’t buying “flowers.” They’re buying “a meaningful gesture that shows thought and care.”

• A graphic designer’s client isn’t buying “design.” They’re buying “a brand that looks professional and makes sales easier.”

When you frame your market around the problem you’re solving, it makes your message far more powerful.

What Data Do You Have?

You don’t need a corporate research budget to get useful market data. Start small:

• Google Trends / social media insights – See what people are searching for and talking about.

• Industry reports – Many trade groups publish free or affordable summaries.

• Local stats – Council websites, Chambers of Commerce, and government data often give insight into population, business activity, and growth trends in your region.

• Direct conversations – Talk to potential customers. Ask them what they need, how they solve the problem now, and what they wish existed.

The data doesn’t need to be perfect. It just needs to give you enough confidence that the demand is real and measurable.

How Do You Attract Them?

Once you know who your market is, the next step is figuring out how to connect with them.

• Product-based businesses: Consider pre-sales, pop-up stalls, social media campaigns, or partnerships with local retailers to build buzz and trust.

• Service-based businesses: Start building a pipeline early. Offer free quotes, pre-bookings, or even just “coming soon” sign-ups to show there’s demand before you fully launch.

• Online businesses: Use content, ads, or even simple landing pages to capture interest and grow an audience.

The aim isn’t to convince everyone—it’s to speak directly to the people who already have the problem you solve.

Keep It Real

Defining your market isn’t a one-time exercise. It evolves as you learn, test, and grow. The more specific and practical you are at the start, the easier it is to shape your operations, refine your financials, and actually reach the customers who matter most.

Because at the end of the day, a brilliant idea without a clear market is just a hobby. But a sharp idea matched with the right market? That’s the foundation of a business.

Your plan is starting to come together... check out Pillar 3 Operations and drill into the nuts and bolts the drive action and results.