If someone asked you today, could you describe your target market?  More importantly, is the business you are doing now reflecting that description?

Today at my BNI meeting a guest who happened to be a dentist was asked to give a short "commercial" about himself, just like the other members do each week.  He gave a little background info and then stated that his ideal client was "someone who has teeth."  We all chuckled, and then he went on to say that he specialized in cosmetic dentistry for young professionals.  That is actually quite a bit more focused than "someone who has teeth." 

His comment made me think a little bit more about the real estate industry.  As a Realtor(R) you want to work with people who are looking to buy and sell homes, but you cannot be all things to all people.  If you specialize in first-time home buyers, your marketing dollars and activities should be focused on first-time home buyers.  The same holds true for any specialization: second homes, luxury homes, investment property, commercial real estate, etc. 

As a real estate virtual assistant company, we have a target client as well.  We want a client who works in partnership with us and has budgeted for a team to help reach defined business goals.  It took me a bit of time before I realized how important it was to both know my target market and be able to accurately tell other people.  After all, as a business owner you want any business you can get, right?  Wrong.  Spending your time filling the gaps to accommodate a non-target client takes away the time you could be spending servicing or marketing your target clients.  Your repeat business will likely come from your target market anyway. 

When we realized we were going off target, we made a tough decision.  As painful as it was, we knew we had to turn away business that did not meet our target client profile. 

Do you know what happened after that?  The phone rang less, but when it did, it was for better business.  Instead of being asked to do one-off projects, we were being asked to quote total support packages and implement lead generation programs.  We were writing fewer proposals each month, but the dollar amount and service level was higher.  We were talking to people who wanted to build partnerships.

What does this mean to you as a Realtor(R)?  Simple.  Go where your market is and don't be distracted. 

• If your target market is young families, go to the soccer field on Saturday morning and sponsor after-game snacks for the team.  Mingle with the parents.  If you have the funds, sponsor a team.
• Is investment property your specialty?  Go to your local community college and offer to teach a non-credit extension class on investing in real estate.  You will have a captive audience and get paid to talk to them.
• Commercial Realtor(R)?  Join a networking group such as BNI.  Each week you will have the chance to talk about what you do and meet 25+ people who own or manage a business.  We all need a place to work.
• Speaking to clubs or sponsoring some activities will allow you to market yourself to your target audience as well.  An stock club would be a great place to sponsor dessert and give a brief talk about second homes.

Defining your target market allows you to focus on your core business and use your expertise to help them.  Having a moving target or one that is too large will force you to spread yourself very thin, which does not help you or your client.

In honor of American Idol Tuesday (which is required viewing at my house), here is a short video of Entrepreneur Idol from Michael Port of Book Yourself Solid about defining your message and your audience.  Enjoy!