When you are choosing a target market, many business advisors and coaches will have you target a very specific market. They will spend a great deal of time having you determine who the best client for you and your business is based on the service you provide, the experience and expertise you are offering, as well as other criteria. This market is known as your primary target market. However, those that are “thriving” are those that have a secondary target market as well.
A secondary target market is a market that could also be described as a “backup” or “alternate” market. For example, let’s look at a business that is located in an area that is subject to the snows of winter and the warm temperatures of the summer. Their target market may be landscapers, construction workers or real estate agents, but this may mean that in the few months where their target market is slower, they end up suffering a downturn in their own business. This is where having a secondary market is a great way to maintain a balance. Looking for a business that is busy only during the slow season of your primary market is a great way to find a balance for your business and be able to service two clienteles.
Your secondary market should compliment your primary market, yet still have the key ingredients of utilizing the products or services you provide and the experience or expertise that you possess. To determine a good secondary market, there are a few things to keep in mind.
1. What businesses run on an opposite cycle to your target market and are, therefore, a complimentary business to your primary target market? For example, landscape companies are busy during the summer months and snow removal companies are busy during the winter months. These are great examples of complimentary businesses.
2. What skills do you possess or offer that could be utilized by other businesses during a slow period for your target market? For example, a bookkeeper that targets the wedding industry such as photographers, caterers, videographers, wedding planners, etc. would not find as many brides and grooms utilizing those services during the winter months. Should this bookkeeper take that opportunity to utilize the winter months of December – April to target Accountants that are preparing tax returns for their clients due in April? This could be a great way to work within their skill set.
3. Your secondary market could also be a market that you enjoy working with and has nothing to do with your primary market. There is absolutely nothing that says you can’t choose two completely different markets which have nothing to do with complimenting each other or utilizing business cycles effectively. For example, you may just determine that you love working with two very different markets. Perhaps one utilizes one skill that you possess while another utilizes a completely different skill. Possibly they both utilize the same skill, but their businesses are such polar opposites they cannot be lumped together and described as a particular target market.
Next time that you are looking to grow your business, perhaps instead of looking as to how you can grow your present primary target market, it might be time to look at a secondary market. For many, the introduction of a secondary market can be just the thing they need to take their business to another level.