In looking at who you want your target market to be, it’s easy to look at the potentially big customers that are out there and think “if I can make just one or two of those sales, I’m all set” as opposed to looking at the smaller customers out there and think “these smaller customers will take a LOT more work to make enough sales to make this worthwhile”
While it’s true that the bigger customers will bring in more revenue per sale, it’s also true that it’s easier to close a smaller sale.”
As an example, if you want to be in the business of making copies you could offer to make exact copies of the Mona Lisa by spending months duplicating the strokes of the painting. You could probably charge a lot of money for that type of service provided you could find an interested customer. An alternative is to offer a simple copy machine service where people can come in and make their own copies for five cents per copy. The per sale profit will be much lower but the initial sales might come much quicker and long term profitability might be much higher.
Selling to the big customer can be very profitable but is also difficult to get to (because everyone is trying to sell to them). Look for the smaller customers that others aren’t interested in and see if selling to many more customers with a smaller profit margin might make sense. It’s worked quite well for Wal Mart!
Have a great day!