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(Art Credit: Andrea Hernandez) This article is posted with permission from our partner Lili and originally appeared on the Lili blog at: https://lili.co/blog/how-to-find-your-target-audience Get the digital bank account designed for freelancers with Lili and manage your business expenses, estimate your taxes, and save for a rainy day all with zero account fees. Start a Lili account today. This question is actually never possible to fully answer, no matter how long you’ve been in business. Not to get too philosophical (we’re more about action than contemplation around here), but it’s good to ask yourself this pretty regularly. You know this: our world never stops changing and evolving. This includes everything from the platforms and technologies available to us at a macro level, to what’s on your playlist as you read this article. We live in a time of flux and change, and so do our customers. So as your business and brand evolves, never get complacent when it comes to knowing who your customer is. Why define a target audienceThis is one of the big differences between running a real business, and just chasing a hobby. Once you get serious about scaling your freelance work into something full-fledged, focusing your time and attention becomes critical. And this starts with defining who it is you’re serving in the first place. In other words, defining a target audience helps to:
Target market vs target audienceThese terms sound the same. Yet understanding the difference can open up doors for your business, in many ways. It can have implications not only for your marketing strategy, but also for your product development and brand. Your target market is the full set of end consumers who could become customers of your brand. Your target audiences are the people you focus on in advertising, based on a set of common characteristics. These are also referred to as “segments”. Your target market is who your brand must appeal to on a universal level, and your target audiences are like chunks of that audience that you reach through specific marketing channels and campaigns. Let’s look at an example. Nike’s target market is famously defined within their mission statement as “every athlete” – which they define as anyone with a body. So, a pretty broad group of people. When you have a global $3B marketing budget, you can afford to go after every person with a body. But even a global leader needs to break down their market into specific audiences, and you can see on their website this is split between men, women and children. Breaking it down further, their products are organized by sport and occasion. Runners, basketball players and general fitness seekers are targeted with different messaging, in different places, for different products. Nike’s Target Audiences
Below are some examples of this in action. Notice how each ad is targeting a unique audience through its messaging and imagery. Fashion-savvy women: Cost-conscious consumers: A range of audiences are included, from parents to serious athletes: It’s best to start big and identify the broadest definition of someone who could be interested in your product or service. From here, you can sharpen the definition to go after a particular subset. Common ways to define a target audience:There are many different ways to slice and dice an audience, and these may shift over time. Below are some of the major categories to consider when thinking about how to expand your target audience definitions. Demographics – Age, location, marital status, household income, children, gender and occupation are some of the most basic ways to define an audience. It’s good to start with a general understanding of your audience in these terms, but some are more important than others depending on your brand. It can also be tricky when lumping people together in this way, depending on the product or service. For example, millennials and GenZ make up over 50% of the US population, so are an attractive audience for many brands. Yet, they’re also the most diverse population in US history, which means their belief systems, attitudes and behaviors are not one-dimensional. For example, ideas and norms around gender are shifting and expanding, which require a different way of thinking about how to cater to a male versus female audience. Demographic information is useful, but it’s not enough to paint a full picture of your future customers. Psychographics – Here’s where things get a bit more interesting. Thinking about the psychological situation and needs of your audience puts things into a much more useful frame, especially in terms of product development and marketing. This requires having a sense of empathy for your audience and their mental state. Are they worried or anxious about something? Or are they seeking adventure and novelty? Interests – This may seem obvious to some, but knowing the interests of your audience (beyond your product or service) can yield useful insights, especially around marketing placement and messaging. For example, Red Bull targets those interested in adventure and adrenaline-fueled activities which is why it sponsors athletes and Formula 1 teams. Behavioral – Behavioral targeting looks at specific actions taken by an online audience, to determine what ads and messaging will be the most effective. For example, you can target people who have visited your website with an ad on Instagram reminding them about your product or service. That’s known as behavior-based targeting; it has nothing to do with who they are beyond the fact that they indicated an interest by visiting your site. Media – Some brands focus their energy on understanding how their audience spends their time consuming media. For example, if you’ve focused until now on Instagram and Twitter, but your audience spends a lot of time on YouTube or TikTok, this could be an opportunity for you to tap into a new segment and attract a new source of traffic. Pulling this together, here’s how a brand like Nike might segment its target audiences: Each of these groups would be researched and analyzed to determine the size of the opportunity, their motivations and pain points, their media habits (to understand where/how to reach them) and how this impacts creative messaging. Nike can afford to spread its marketing budget across many different audiences, over a long period of time. But now let’s shift our focus and think of how an independent business owner can identify target audiences to make better marketing decisions. How to identify your target audiencesNow that you know some of the ways you can describe your audience, let’s look at how to figure out who these people are.
Tips for defining your target audienceOnce you have some research and insights around the different possibilities for defining your target audience, it’s time to find them! Social media is a good place to start because it’s where your audience probably already is, it’s relatively easy to get set up with an ad account, and you get feedback pretty quickly.
Defining your target audience is one of the most critical aspects of growing any business. Start at a high level, defining the lowest possible denominator is – regardless of which marketing channel and targeting options. If you take away one key point from this article, it’s this: the more empathy you have for your audience as people (vs. target consumers) the better your marketing will be. via Freelancers Union Blog https://blog.freelancersunion.org/2022/05/09/how-to-find-your-target-audience/
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(Art credit: Sisi Recht, "Balance") This article is posted with permission from our partner IRS and originally appeared on the IRS blog at: https://www.irs.gov/newsroom/irs-recognizes-small-business-week-information-and-free-resources-for-starting-a-business Subscribe to IRS tax tips here. During National Small Business Week, May 1 to 7, the IRS is highlighting tax benefits and resources tied to the Small Business Administration theme for this year's celebration: "Building a Better America through Entrepreneurship." During National Small Business Week, the Internal Revenue Service wants taxpayers to know there are free resources on IRS.gov for those that are starting a business. Small businesses play a pivotal role in the nation's economy. The IRS has a variety of resources available to help employers meet their tax responsibilities as well as help their employees. Selecting a business structureWhen beginning a business, taxpayers must decide what form of business entity to establish. The form of business determines which income tax return form must be filed. The most common business structures are:
Understanding business taxesThe form of business being operated determines what taxes must be paid and how to pay them. The following are the four general types of business taxes:
Note: Generally, business owners must pay taxes on income, including self-employment tax, by making regular payments of estimated tax during the year. Knowing when to get an Employer Identification Number (EIN)An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number and is used to identify a business entity. Generally, businesses need an EIN. This is a free service offered by the Internal Revenue Service and business owners can get their EIN immediately. Keeping good recordsMaintaining adequate records will help small businesses monitor their progress, prepare financial statements, identify sources of income, keep track of deductible expenses, keep track of their basis in property, prepare their tax returns and support items reported on their tax returns. Taxpayers should maintain their records for at least 3 years. Choosing the business yearSmall businesses must figure their taxable income on the basis of a tax year. A "tax year" is an annual accounting period for reporting income and expenses. Tax years small businesses can use are:
via Freelancers Union Blog https://blog.freelancersunion.org/2022/05/05/irs-recognizes-small-business-week-information-and-free-resources-for-starting-a-business/
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(Art Credit: Karen Fischer) Securing funding and prioritizing retirement should be parts of every freelancer’s business and life plans. But most of the time, they aren’t. Freelancers struggle to pull in enough to pay the bills AND save. They’re funding everything out of their own pockets, which can be incredibly overwhelming. But what if you could relieve some pressure financially and start on a path to early retirement? We’re happy to tell you that you can. With a bit of creativity and a spotlight on good financial habits, a thriving business and retirement are within reach. Here’s your new freelancer’s guide to funding and retirement. Explore All Funding OptionsAs stated above, freelancing is tough because most of us use our own money to keep our businesses afloat. It’s such a relief when you can get additional funding from other places to grow your operation. You can also use extra financial help for living expenses. If you can get a traditional small business loan from a bank, do it. Work with your banker on suitable loan terms and the lowest interest rate you can get. When you receive your loan funds, use them wisely. It might be a good idea to draft a plan for the loan funds, whether you plan to use them to hire an employee or scale your marketing strategy. If you have trouble landing a traditional business loan, consider creative alternatives. Personal loans and lines of credit are available to freelancers. So are alternative lenders like private online companies offering personal finance solutions. You could even get the funds you need for your business through crowdfunding or grants geared toward freelancers. Ample research is the first step to getting any of these funding options. In addition, keep all your financial and other business documents organized and easily accessible should you need to provide information for one of these opportunities. Be sure that every application you put in fulfills every requirement. Finally, follow up until you get a final answer on each option you pursue. When you get funding and start making money as a freelancer, it’s important to have a designated account for your retirement funds to stay on track. Open an Individual Retirement AccountStart your retirement savings with a simple contribution each month to an individual retirement account (IRA). The most appropriate IRA for you depends on:
Whether you set up a Roth IRA, Traditional IRA, Solo 401(k), or SEP IRA, budget for the max contribution. Understand the tax benefits available to you with these accounts and how to take advantage of them. Be sure you’re aware of any penalties associated with early withdrawals. And dig into the rest of the details about your chosen account until you thoroughly understand everything about it. When your retirement account is open, getting in the habit of saving is crucial. Get in the Habit of SavingWhen you find funding, you have to use the money responsibly. Also, you have to be diligent about saving for retirement once you get your accounts set up. Getting into the habit of saving and sticking to a budget will help. Create a budget for your freelance business. Note all your income and add up all your fixed and variable expenses. Don’t forget to account for your salary. See what’s left over after all expenses and salary are paid. Allocate leftover money to your business savings accounts and investments. Repeat the budget process for your personal finances with the salary you pay yourself. You should have a line in your budget for money allocated to your retirement savings account. You should also get in the habit of setting aside money for healthcare expenses and emergency funds. Being consistent with your budget and savings are key. Use a budgeting tool if you have to, but just stick with it. If you aren’t totally comfortable with finances, look to a financial advisor for help. Enlist the Help of a Financial AdvisorIt’s a smart move to work with a financial advisor. Financial advisors can help you set up your retirement accounts correctly and maintain them. In addition, they can ensure you fully understand your benefits. They’re also great people to have on your side to help you put your freelance income to work for you. Furthermore, financial advisors are great resources to tap into to learn about changes to IRS rules for retirement that affect freelancers. Determine if you have money in your budget for a financial advisor. If you do, research potential fits in your area specializing in working with freelancers. Set up consultations with your top choices and go from there. ConclusionNavigating funding and retirement as a freelancer doesn’t have to be overwhelming. Having everything in your hands can be just as beautiful as it is scary. Use these tips to help you take charge of finding funding for your freelance business and achieve the retirement life you envision. via Freelancers Union Blog https://blog.freelancersunion.org/2022/05/04/a-new-freelancers-guide-to-funding-retirement/
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(Art credit: Pedro Gomes) Now that you know the different business models, let us look at some actual small business ideas that can make your civilian life more meaningful. Logistics SupportAlmost every business or organization requires help with their logistics. Even big events need logistical support. And, logistical failure can lead to complete disaster for the organizer. You can use your experience to help clients move and store their goods, services, and information. Your resourcefulness and problem-solving ability will come in handy. You won’t need any considerable investment to start your logistics firm. Having a zeal to solve problems and finding the right business partner is enough. And, that won’t be difficult with your strong networking skills. Security SpecialistsThe demand for security personnel is booming. Whether we’re talking about politicians, celebrities, or societies and organizations, everyone might require security services. And, who can be a better fit than military veterans? Your military training has developed courage, strength, and the ability to work well during a crisis. Starting your security agency will give you an excellent opportunity to utilize your skills. Not everyone knows how to disarm attackers or manage surveillance equipment. Thus, your services will be in great demand. Form a team and start your own security agency. You may already know trained professionals in your network. People will value you for your military experience, and you will never run out of clients. GymsStarting a gym is one of the best business ideas for veterans. You have received extensive physical training during your military days. Now is the time to share your experience and help people lead healthy lives. You can set up a gym catering to a specific set of customers. A gym that helps middle aged people to stay in shape is a great idea. Women veterans can start a women’s gym. The more niched out your small business is, the greater are your chances of gaining loyal customers. Technology ConsultantThe military deals with various forms of technology like GPS tracking, drones, etc. If you had hands-on experience during your service days, you can share your knowledge with others and build a business out of it. Many organizations require technology experts. If you can train their staff on using various tools and devices, you will become an invaluable asset for them. Find a company that requires technological guidance and pitch your consulting services to them. That way, you will get your first client and get started with your new business. Healthcare AdvocateAs a veteran, you know how important good health is for military personnel. People in the services often get disqualified after an injury. Moreover, they are under constant pressure to stay fit. You can start your business to help these service members to get back in form. Getting started is easy because you don’t need additional skills and resources. You can use your military experience and create a system to help the distressed personnel. Guess what? It is another zero investment business idea for veterans. Military ConsultantIf you have extensive experience in the military, you will become an invaluable asset to governments. Military consultants advise the government and the army to improve and run the forces efficiently. You will be closely associated with strategic planning and implementation. It requires deep knowledge about the deployed troops and ammunition. The government may ask you to help with a particular military campaign. However, it is not one of the best small business ideas. That’s because you might have to travel a lot and get calls for emergencies. RestaurantsWho doesn’t love good food? They say it is the easiest way to one’s heart. So, starting a restaurant is one of the best small business ideas. But how will being a veteran help in your restaurant business? Well, you already know what teamwork is. Different soldiers in the troops had their own responsibilities but you worked towards a common goal together. That is what happens in a restaurant kitchen. Moreover, you might have some experience in the kitchen during your camp life. Remember making those quick meals for your colleagues with the minimum ingredients available? Now is the time to put all those skills and experience to use. You will require some capital for the restaurant space and equipment. However, you can also start your food delivery service from home. That won’t require much investment and would turn into a profitable business in the long run. You can also start and expand your restaurant franchise over time. Extreme Adventure Training
Are you passionate about adventure sports? Many veterans even have experience with extreme adventure sports. Why not turn it into a profitable small business? From paragliding and skydiving to horse trekking, you have endless opportunities. You can provide training for adventure sports in general or pick one particular sport. You will need to invest in the resources and equipment. Apart from that, you also require land to carry out your adventure sports training. But once you start gaining a reputation, there is no looking back. Outdoor Company
As an experienced veteran, you will be a natural fit to start an outdoor company. You must have spent a considerable time in camps and trenches. So, you know how to deal with adverse situations. You can start a traditional outdoor company to help tourists in their activities like trekking and camping. Or you may also create a more specialised business to help professionals. For instance, Crackshot protects snake gaiters from poisonous snake bites. All you need is an adventurous spirit and the ability to handle crises. And you already have these skills as a veteran. Thus, you can start a small business out of it without considerable investment. via Freelancers Union Blog https://blog.freelancersunion.org/2022/05/02/9-small-business-ideas-for-veterans-with-entrepreneurial-spirit/ |
AuthorI have 5+ years experience working as a medical transcriptionist. When I am not working, I enjoy sports like playing basketball or judo. I love making friends and connections. Archives
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