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In this edition of “Ask the Board,” we’re pleased to feature Paul Cheek, the Executive Director of the Martin Trust Center for MIT Entrepreneurship, a Senior Lecturer at the Massachusetts Institute of Technology in the MIT Sloan School of Management, and the author of Disciplined Entrepreneurship: Startup Tactics. Paul shares tips on how you can find your first customers as a business owner or entrepreneur.
At the end of the day, a business won’t exist without customers. But, how do you find your first ones? Paul Cheek answers this question below.
Identify your target market
Before jumping in to find your first customers, make sure you have a narrowly defined target market. Last night, I had dinner with a couple of founders who wound up trying to serve two different market segments.
While their core technology could serve both groups of customers, they found that they were splitting their resources because each market segment had a different sales process and different product requirements. Identify[ing] a focused, specific group of target customers who share the same demographics and psychographics is the way to go.
Don’t overlook market research
Learn about your target market. Find out where they congregate and get to know them. Figure out their demographics, psychographics, motivators, fears, daily routine, and anything else that may influence their buying behaviors and preferences.
If you have some initial customers who are proud of the product or service you delivered, don’t hesitate to ask them for referrals.
Paul Cheek, Executive Director of the Martin Trust Center for MIT Entrepreneurship
Leverage your network
Warm connections and introductions can often help you find your first customers faster than you would otherwise and, in turn, increase your odds of success. Even if your direct connections aren’t a fit for your products or services, they may know others who are.
Attend industry events
Showing up where your customers are helps! Do your research in advance and meet with individuals and companies at industry-related events. One-on-one conversations and product demos can lead to profitable, first customers.
Publish content
Create valuable content that speaks to your target customers. High-quality content can position you as a thought leader in your industry. This will help both in terms of inbound customer outreach and amplified messaging when you post on social media.
Implement marketing experiences
Don’t start with a radio spot or billboard. Instead, begin with marketing experiments that can help you discover useful promotional techniques for your products or services. With a very small investment, you can see what’s working and what isn’t.
Perform outreach
Once you know who your target customer is, you can identify other people who match the same characteristics. Build a lead list of similar individuals and craft short, compelling outreach messages you can send via email, phone, text message, social media, or any other platform that makes sense. Experiment with your target audience and messaging to see what resonates.
Ask for referrals
If you have some initial customers who are proud of the product or service you delivered, don’t hesitate to ask them for referrals. After all, your best sales people will always be your customers. The added bonus of referrals is that they keep your customer acquisition costs low.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
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