How to Find the Right Target Audience for your Small Business
No one understands your business like you, but understanding your customers is an entirely different ball game. Even if you have some notion of who they are and how to cater to their needs, the reality is always more complex, which is why it’s worth sifting through the nitty-gritty to understand what exactly makes them tick. Such a simple task can quickly devolve into an expensive, time-consuming endeavour. That’s why we’ve detailed all the best ways of identifying the right target audience, so that you can hit the ground running. There’s a lot to consider – but it all starts with the right questions. Why do I need to define my target audience? Knowing, as they say, is half the battle. Sure, you could just take a handful of recurring customers and assume they’re the sort of people you should be targeting, but this broad supposition negates any in-depth analysis that might yield high-value results. For example, you’d be missing out on those who chose not to use your services – a huge missed opportunity. On the other hand, by defining your target audience, you’ll be able to produce a better product line-up as well as a more compelling marketing strategy that appeals to their needs. Win-win! Another common mistake you can make is not doing enough research or due diligence. If you only perform preliminary studies, this could skew your results, leading to subpar campaigns that don’t go anywhere. Furthermore, you might be pitching yourself to the wrong people, wasting valuable time and resources. “By defining your target audience, you can create a stronger product line-up and a marketing strategy that truly speaks to their needs – a win-win.” This isn’t just a one-off exercise either. Businesses are always finding new ways to adapt themselves in the face of changing technologies and economic conditions, so it makes sense that your target audience would also change. Just look at companies like Apple and Lego, which have reinvented themselves to appeal to younger, more modern audiences. So, where do you start? Well, let’s begin by understanding the difference between your ‘target audience’ and your ‘target market’. What’s the difference between ‘target audience’ and ‘target market’? Although they may sound similar, the key difference is that the target audience is a specific part of the target market. For example, let’s say you run an Italian restaurant. Your target market would be quite broad (i.e. anyone within a 10-mile radius of you), but your target audience could be broken down into food-loving families, romantic couples or local business workers looking for low-cost meals. Every business wants to cast their net as wide as possible, but the way you market to one demographic might not necessarily work for another. By narrowing your target market down into separate, distinct categories, you can tailor your products, services and marketing strategy accordingly. In the case of our Italian restaurant, you could offer three-course meal deals for parties of 5 or more, or 2 for 1 cocktails for younger couples out on a date night. That isn’t to say that you should exclude anyone who doesn’t meet your criteria, though – just that your campaigns will have far more impact when they’re geared towards specific audiences. At the end of the day, only you know what deals will work best for certain customers, which is why it’s so important to determine your target audience. So, let’s roll up our sleeves and see who they are. How do I identify my target audience? 1) Analyse your current customer base It goes without saying that your existing customers are an excellent starting point since they’ve already expressed an interest in your business and services. If you haven’t already done so, try to compile as much information as you can about them and identify any recurring trends. Here are some key details you should try to find out: Name Age Gender Location How they found you What they bought from you Are they a repeat customer? If you can’t determine this information from your sales records, here are some other ways you can gather this data: Email Marketing: If you’ve got a mailing list, products like SurveyMonkey or Mailchimp allow you to send out fillable forms and surveys requesting this information. Both tools are very easy to use and don’t require any tech skills, plus they offer free starter plans! Social Media: With the right tools, you can track all manner of things, like impressions, follower growth as well as engagement and conversion rates, helping you to make informed decisions about your marketing campaigns. While most platforms have built-in analytics tools, we recommend investing in third-party solutions like Sprout Social and Hootsuite, which offer a comprehensive breakdown of these metrics. While you’ll need to splash some cash to reap the full benefits, both tools come with a free demo so you can try them before committing. See also: Top 8 Social Media Management Tools Interviews: Though face-to-face interviews are more time-consuming, you’ll get more direct, in-depth and nuanced answers than from an email survey or text message. You don’t have to travel far either, as video conferencing tools like Zoom and Teams have free plans that allow you to host virtual meetings with up to 100 people anywhere in the world. If, however, you’d rather something more personal, local shows and conventions are an excellent place to start. Be sure to bring questions with you the next time you attend one, in case you bump into any existing customers. Google Analytics: This free tool can be integrated into your website and social media channels, after which it’ll give you a breakdown of your visitors’ demographics, including their device type and how much time they spend on your website — which could highlight any potential pain points for you to address. See also: Google Analytics: A Guide For Your Online Business Once you’ve gleaned this all-important information, you can then move onto the next step of
Tax Changes 2024: Need to Know Info for Side Hustlers
Starting an online side hustle is an amazing way to earn some extra income while doing what you love. It’s a chance to turn a passion into a profitable venture right from the comfort of your bedroom. What better way to make a little income on the side? But then, there’s tax. There — we said it. Like shouting “boo!” in a library, the mere mention of the word is enough to send shivers down the spine, conjuring images of paperwork mountains and costly mistakes. Alas, paying tax is a fact of life. The good news is that keeping your accounts in order isn’t as tricky as it sounds. It’s all fairly simple, really. In today’s blog we’ll explore some new tax rules outlined for 2024, from shifts in tax brackets to changes in deductions and credits, giving an overview of how these updates might impact you. You may even be able to save a little money along the way. Embarking on an online venture can be rewarding in more ways than one. According to research by Aviva, as many as one-in-five UK adults have started online side hustles since March 2020. The average post-pandemic side income sits at about £497 a month, with around 16% of these new projects now earning over £1,000 each month. 39% of respondents in the same Aviva study describe turning a genuine hobby and passion into an income stream. 30% state that the additional income was to help cover their own bills and expenses. 21% of new side hustlers, meanwhile, are aiming for more than just a top up, with the ultimate goal of quitting the desk job and becoming their own boss. ❝ Keep in mind that your side hustle, no matter how small, may still be a business in the eyes of tax authorities. This means that any income you generate may be subject to tax. ❞ Some side hustlers assume that if their side gig isn’t their main job — or if they haven’t been trading for a full year yet — that they don’t need to worry about taxes. Sadly, that’s not the case. Keep in mind that your side hustle, no matter how small, may still be a business in the eyes of tax authorities. This means that any income you generate may be subject to tax. Tax laws are changing all the time and it can be difficult to keep up. As we’ll get into, some of the tax information for last year is about to go out of date (if it isn’t already). Understanding how to handle your taxes and self-assessment is key to avoiding stress and penalties. In this guide, we’ll offer some tips on where to look for updates and how to understand what they mean for you. We’ll break down what counts as taxable income for your side hustle and how to figure out what you owe. Keeping informed is also key to staying sure you’re taking advantage of all the opportunities to save. Be sure to check the gov.uk website for official guidelines. Remember that you should always seek tax advice from a qualified professional. The £1,000 Threshold To start on a positive note: You probably don’t need to make a declaration if you’ve made less than £1,000. This one isn’t a new rule for this year. Tax-free allowances for property and trading income came into effect back in April 2017. If your annual gross trading income is under £1,000, it may be the case that you don’t need to tell HMRC. However, be sure to double check the government’s official website, as there are some situations in which you’d still need to register for a Self Assessment and declare your income on a tax return. Even if you make less than £1,000, you should always keep a record of your income. Good record keeping will make it easier to comply with tax rules. There’s also a variety of deductions and credits you can take advantage of — more on that later. But what if you are making more than a grand a year through your online gig? First of all, congratulations! It’s great to see that hard work is paying off. If you run a part-time business online and your gross annual taxable income is more than £1,000, then you’ll need to inform HMRC. You must register for Self Assessment by 5 October in the following tax year. This is true whether you work for yourself, own your own small business, or have money coming in from a number of avenues. Given that £1,000 in a year only equates to around £80 per month, there’s a good chance that you’ll be above this threshold. Tax rates for 2024 The tax year runs from April 6 to April 5, the following year. Everyone gets a tax-free Personal Allowance of £12,570, which decreases after £100,000 income. Employees working for a company would usually pay taxes on income (via PAYE), but this isn’t the case of an online side hustle. Estimating your taxes means figuring out roughly how much you need to pay. You’ll look at what you’ve earned, what you can deduct, and then use that info to work out what you owe. If you’re doing this throughout the year, you can avoid nasty surprises when the bill comes due. Here’s how it breaks down based on earnings: ☐ Up to £12,571: 0% – Personal Allowance ☐ £12,571 to £50,270: 20% – Basic Rate ☐ £50,271 to £125,140: 40% – Higher Rate ☐ Over £125,140: 45% – Additional Rate Remember: Income tax bands are based on earnings across all sources of income. So while your online gig might only be bringing in £10k a year, if you’re on a £25k salary in your main job, that’s £35k in total — and you’d be liable to pay tax on the remainder after your Personal Allowance. (This is a simplification, though, as we’re not taking into account National Insurance contributions and other factors.) Register as a sole
Applying Social Media Practices
How to integrate social media into your business Any business, regardless of its domain of activity, has to adapt to change. Nowadays, this means shifting to online because that’s where customers are spending most of their time. Social media has become vital for business owners, especially when they’re running important marketing campaigns. It’s an incredibly powerful tool for business promotion. No matter the size of a business, it’s important to know how to take advantage of this mass based communication – called Social Media – that brings so many benefits. To help you start and integrate social media into your business, here are a few simple steps that you can follow. Start with research Almost every campaign can be promoted through social media, but first you need to take the time to learn some of the things about the social media tools available and see which ones you would most benefit from. Aside from Facebook, Twitter, LinkedIn – which are the most popular – you can also look for groups where people usually interact. Find those groups where people would be interested in the products or services that you offer. Read what people are writing, observe and then get in to the conversation. Consider your approach The way you approach people is extremely important. No one likes aggressive sales agents that only talk about their product in a desperate attempt to make a sale. On the web, people can easily ignore your message if they realise you’re only trying to sell a product. Therefore, you should mainly focus on engaging with people and building relationships. Once you’ve managed to gain their trust, it will be easier to mention your products. Give them “something” If you want people to “Like” your Fan page or “Follow” you on Twitter, give them a reason to do so. Most web users won’t stick around unless you give them something: an irresistible offer, a discount, a free e-book, a limited offer. They need to know what’s in it for them once they hit the “Like” button on your Facebook page. Find out what would make a great offer and give it to them. Get them to spread the word Word-of-mouth advertising works amazingly well on social media. If your product is innovative, clients will want to tell their family and friends about it and they have all the tools to do so very easily. On the other hand, you have to be careful about what your product promises because if clients discover it’s worthless, they will ensure everybody knows about it. Social media for marketing campaigns Once you’ve gathered a satisfactory fan base, you can start putting together and running marketing campaigns. Make them creative enough so that your fans and followers want to share it right away. At the same time, take advantage of the attention and interact with them as much as possible. Include your employees Social media is even more powerful when the employees of your company take part in your efforts. Encourage them to participate so that the public feels privileged to be part of such a great and united community group. However, take them through an online etiquette training first to ensure no one says something that could harm your company’s image. Social media is an incredible tool to promote your business if you’re willing and patient enough to learn its ways. Take a look at what other companies do and see what would work for you. This is the first part of 26 articles that will run every Monday and Wednesday on the 123-reg blog over the next 13 weeks. Don’t forget to read them all and move your business to the next level in terms of social media.