It was 2003. I was still in university, and it would be many years before I started a real business.

I’d spent hours designing logos for the imaginary company I was thinking of starting. I was using a free Photoshop alternative I’d downloaded, that I had no idea how to use. Not that I knew how to use Photoshop either – and there was no way I could afford it – so it was as good as I was going to get.

“James, nice attempt. I can think of a few improvements to this logo…”

I’d emailed my best attempt to one of my friends who already had started a small software development consulting business, asking for advice. He was being kind. The logo was terrible. I had no design skill. Getting the logo right felt important. All businesses had logos. Logos were important.

I spent hours more to get a better logo.

What a waste of time.

At that point, a logo is not important. It’s not even near the top of the list. I hadn’t even worked out the details of what the business was going to do yet.

It’s easy to get caught up focusing on the wrong things if you’re not experienced starting and growing a business. You look around at what other real businesses have, and mimic what you see. The visible stuff, like logos, or social media. At the early conceptual stage, logos, business cards, websites, social media – they don’t matter.

So, what does matter?

What kind of company?

The obvious thing that matters, is what kind of company you’re going to start. Back then I was planning on starting an IT business. But that’s not quite enough. It’s too vague and doesn’t let you target your efforts accurately enough to make it a long term success.

An aside: If you have a business, and growth has stalled, you might not have defined your target market well enough.

What kind of company? Ask yourself, and answer:

• What exactly are you going to sell (or provide)?
• How are you going to sell it?
• Who is your target customer?
• How are you going to find your customers?
• What pricing model? Discount, premium or niche?
• How are you going to charge them?

Let’s break it down and look at a scenario.

Barry (Bazza, if Barry is Australian) is planning on opening an auto parts store.

Bazza’s Auto Parts Store

Barry’s decided he’s going to sell auto parts.

What auto parts, exactly? Barry’s auto parts store could focus on providing everyday car consumables like car care products, he could sell offroad modifications like wheels and snorkels, or he could sell replacement engine & drivetrain parts.

How would he sell to his customers? It could be a physical store, online or with mobile sales reps.

To who? The everyday consumer, car enthusiasts, or mechanics?

How would Barry find these customers? Online advertising, physical location & signage or cold calling?

And is Barry going to provide cheap or premium products, and charge them up front, or by invoice with payment terms?

More than a vague idea

You can see how with working through these questions you can start to envision Barry’s auto parts business in more detail. Clearly understanding the target market of the business helps to make decisions about other elements of the business. What the answer is for each question, is less important than having an answer for each question.

Having your target market defined well allows you to align your business to serve them better – and ultimately be more successful.

I eventually did start and grow the IT business, but it was years later and looked nothing like I might have imagined back in 2003. Fortunately, by then, I was able to pick a market, pivot, and scale.