The secret to business growth? Knowing your market inside out.
Big brands never launch without deep market knowledge based on segmentation — and entrepreneurs can benefit from the same approach. Understanding your market isn’t about jargon or corporate frameworks; it’s about seeing who the key players are, how products reach customers, and what really drives buying decisions. In this guide, I’ll walk you through the steps to truly understand your market, so you can find the best opportunities for your business to grow.
So, how do you start identifying market opportunities? Let’s break it down step by step.
Step 1: Segment the Market
Market segmentation is the process of dividing a broad market into smaller, defined groups so you can better understand your customers and design offers that fit their needs.
Using public data sources (and tools like AI to help you research), you can start building a picture of your market. Once you’ve defined the overall space you want to play in, zoom in on these aspects:
- Types of solutions available In education, solutions range from free YouTube videos to skill-based courses to full university degrees. In hair care, think shampoos, conditioners, masks, styling products, and more.
- Channels of delivery Education is delivered online, in traditional classrooms, and even through corporate training programs. Hair care products are sold in supermarkets, pharmacies, salons, e-commerce, and social platforms. Some of these channels are booming, while others are declining.
- Key players in the market Coaching has freelancers, large coaching networks, and corporate programs. Hair care has global multibrand corporations alongside boutique salon-only brands.
- Average price levels Entry-level courses might cost $97–$297, while premium programs exceed $2,000. Hair care ranges from €1 drugstore basics to €300 prestige treatments.
- Buyers vs. users Don’t assume the buyer and the user are the same. A mother may buy deodorant for her teenage son. A company may purchase an Udemy subscription for employees. Your marketing message must speak to the buyer, while your product must meet the user’s needs.
- Situations and occasions of use Everyday hair care versus special event styling. First-degree university studies versus professional upskilling. Knowing the context sharpens your product design and positioning.
👉 This competitive market analysis helps you estimate market size, spot saturated areas, and uncover potential opportunities. Remember: a crowded segment often signals strong demand, while a gap might exist for a reason (legal, technical, or cost barriers). Keep an open mind—you’re still in orientation mode.
Step 2: Add Your Experience and Strengths
Data alone isn’t enough. The second lens is you.
When defining your target audience, consider:
- Which market segments align with your career background and lived experience?
- Who already comes to you for advice? What type of people naturally connect with your expertise?
- What life experiences, passions, or hobbies set you apart and make you relatable?
For example, working in FMCG, raising a child with special needs, or coaching sports can all give you unique insight into specific customer groups. These personal strengths can help you connect with your audience more authentically than any competitor.
Step 3: Put It All Together
Once you’ve combined market research for startups with your personal perspective, you can make better choices about where to focus. Ask yourself:
- Who is my audience? For example: entrepreneurs in their first five years of business, or new mothers with babies under 18 months. You don’t need to know every pain point yet—just build a clear, descriptive profile.
- What will I offer? Will it be one-to-one coaching, group workshops, consulting for start-ups, or something specialized like microbiological analysis for craft beer?
Pricing and channels will come later, but by now you should already have a solid idea of your options.
Two Paths to Opportunity
Looking only at existing offers shows you what’s already being served. It doesn’t automatically reveal what’s missing—and unmet needs can be a powerful source of innovation.
But here’s the nuance: opportunity doesn’t always mean finding a gap. Entering a crowded, growing market can be just as promising—if you bring something new. For example:
- A familiar need delivered in a different way (think: fitness apps compared to gyms).
- A solution tailored to a specific audience (career coaching for new parents).
- An approach shaped by your unique experience (a nutritionist with a background in competitive sports).
In many cases, these paths are less risky than chasing a completely empty gap—because you know demand is already there.
Key Takeaway: Where Opportunity Really Lies
Market segmentation isn’t just a spreadsheet exercise. It’s about combining:
- Market data – to understand size, channels, players, and pricing.
- Your own strengths – to identify where you can deliver unique value.
- Smart positioning – whether by serving unmet needs or rethinking how existing needs are addressed.
That intersection—where your skills meet a clear audience within a viable, growing market—is where your best opportunity lies.
Need some help to do this? Get in touch.
