Understanding The Market

Every time I talk to someone about starting a business or about my own business the central theme comes down to “market.” Market defined as a group of people that are your customers or your potential customers.

Fundamentally every business needs to understand their market in order to be successful. There also to be a sufficient quantity people in this market with problems. The problems need to be of sufficient pain and scarcity that your solution (product or service) to that problem rises to the level of profitability.

In the past I have created what I thought were great products, only to find out that, in the end, I did not understand the market all that well. I have found out that in fact I don’t understand a lot of markets well or re-phrased, I don’t understand people that well. I don’t know why they choose one thing or another. But I do know this: Understanding the market is the key to business, or re-phrased, understanding people is the key to business.