The Industry & your market
Is there a market for consultants in South Africa?
In South Africa there are many entrepreneurs looking for guidance and help. These start-ups frequently outsource administration and bookkeeping services as it is more cost effective than employing a full time person to take care of this side of the business.
If you target the right market there is certainly room for the kind of business you wish to start.
Start your research by compiling a market analysis. This is a regional and neighbourhood study of economic, demographic and other factors made to determine supply and demand, market trends, and other factors which may be important to your new business.
Make your study as complete as possible. Use the internet to conduct research. You can also approach the Cape Town Chamber of Commerce and some of the smaller Chambers to help you to narrow down your target by interest, demographic, and common trends.
These are the kind of questions you need to ask:
- Who is your target audience?
- Where is your target audience located?
- How will you attract them to your products or services?
- Who else is competing for their loyalty and devotion?
- Are you targeting business or consumer sectors?
- What extra value can you offer?
- Are your rates competitive?
How will you reach the target market?
It is a natural instinct to want to target as many people and groups as possible. Don’t.
Rather focus directly on the needs of a specific group, which in your case are Entrepreneurs. This is known as market segmentation.
This information will help you write a business plan.
How to define a target market
You may believe you have a great idea and a well-defined niche, but you need to have a market for your idea. Someone must be willing and able to pay you for your expert advice.
Who are your potential clients?
Will you be marketing your consulting services to large corporations? Or will you offer a specialty that would only be of interest to smaller businesses? Perhaps your services will be sought after by non-profit organisations.
Whatever the case, before you go forward, make sure you spend time preparing both a business plan and a marketing plan. You won’t be disappointed with the results – especially when clients begin paying you.