Where to start your retail business is an age old question that entrepreneurs struggle with. You’ve heard it before the most important thing when starting a business is location, location, location. This is a practical guide for figuring out where to start your business for free. We will go over each step in putting together an analysis of locations based on your market segments.
Psychographics vs. Demographics
Psychographics are a more sophisticated method of segmenting your target audience. Traditionally, demographics were used in order to segment customers. This meant using factors like age, gender, race and income. However, there are more to people than just their income. People have different values, beliefs and customs that affect their willingness to buy and maximum willingness to pay. Nielsen (the company that does T.V ratings) has developed 66 types of psychographic profiles that better represent the lifestyles and consumer behavior of real people.
I will introduce two methods for finding where to start your retail business. But first, i made a really great template to do all of this. I simply ask that you sign up to get email updates of only the best posts like this one.