Starting off, a new business will have only one goal: being successful. If the business sells enough, it can stay in business and make a profit. If not, it will close down, lose money for the owners or even force the entrepreneur into bankruptcy. A practical strategy for the next stage of your business must be quickly formulated. Here are three ways to help.

First, target your market. Then, let your target market know you exist and what you do. This is done by marketing your business to your potential customers. A business can spend a lot of money on advertising and marketing, but is it reaching its pool of potential buyers? If your target market is upper middle class 35 to 50 year old women it would be a waste of money advertising on a TV show that targets 18 to 35 year old male NASCAR racing fans. You must know who your target market is and aim your entire marketing effort toward that target. It is not rocket science.

Second, set an appropriate price point. This can be a tricky task as it is mixed up with psychology, basic human nature and perceived product value. For example, Tiffany & Co. and Wal-Mart both sell watches. Tiffany & Co. profitably sells watches at price points of $20,000 or more, Wal-Mart profitably sells watches with prices starting at about ten dollars.

A watch is just a mechanical device that divides time into hours, minutes and seconds. So why is there such a huge difference in price? Well, a watch is not just a watch. Tiffany & Company has targeted its market and positioned itself in the market as a provider of very elegant, high-end jewelry. In this segment of the market, price and even mechanical accuracy are less important than design of the watch and status of the brand. At Wal-Mart you can buy an inexpensive watch that may need replacing in a few years. Both companies make money selling watches at different price points because they target very different markets.

Third, find ways to make it easy for your customers to purchase the products or services of your business. This seems straight forward, but it is not. For example, make the purchasing process easy by accepting credit cards. Customers tend to buy more — 20 to 50 percent — if they can use a credit card than if they use cash or a check. Somehow credit cards do not feel like cash to most people. That increase in sales will far outweigh the service fee you will pay to the credit card providers.

From the moment you open, and at every moment from that point forward, understand who your customers are, set price points to attract your targeted customers into your business, know the tricks that will keep them interested in your business and coming back. There is never a straight and simple answer to these questions as the marketplace is a moving target dependant on the changing wants and needs of the customer. If you need help determining the “now what” or next steps to building your successful business, contact the Kitsap Business Assistance Center at (360) 307-4220 for no-fee and private counseling.

(Editor’s Note: Rand Riedrich, is a Certified Business Advisor at the Kitsap Business Assistance Center (KBAC), and can be reached at 360-307-4220 or rriedrich@oc.ctc.edu. For KBAC partnering opportunities, please contact Wendy Miles, Director of Customized Training and Military Education at Olympic College at 360-475-7786.).