Whether you are thinking of starting a new business, buying an existing business or a franchise, it is important to understand the customer base of the business. The most successful businesses are those who know and deeply understand their customers; afterall, the goal of every business is to get and keep customers.
Here are some questions to ask to help you understand the customers of the business:
- Does the business cater to individual customers or businesses? Or is it the government?
- If individuals, do you know the demographics of the target market?
- If businesses, how big are these companies? Are they micro, small, medium or Fortune 500 type of businesses?
- How do the customers decide to buy this type of product/service?
- If the customers are the government or businesses, what is the purchasing process in the organization?
- Is the business heavily dependent on one or few customers?
- Are the customers in a growing market, or is the market shrinking?
- Are there possible changes or shift in the industry that could affect their purchase from the business?