Tips for increasing sales are closer to home than the 'market as a whole'.

Hello, this is Iguchi.

As a sole proprietor, I spend my days forming and testing hypotheses while exploring web marketing and sales promotion methods that can be implemented even with a small budget.

In this note, I focus on marketing terms that you may have heard of, but are often used in a vague way. Based on my own research and practical experience, I have summarized them in the simplest language possible.

I hope that even those who are not comfortable with technical jargon will find this helpful and think, 'I see, that's what that means.'

When you are in business, don't you sometimes feel like, 'Lately, customer behavior has been changing...' or 'I feel like there are more competitors now...'?

But it's a waste to just leave those 'reasons' as vague feelings.

Actually, the hints are often hidden right around you, in what we call the 'micro-environment'.

Customers, competitors, yourself, suppliers, potential substitute products...

Just by organizing and looking at these, you might find discoveries like, 'Oh, so that's why things have been like this lately!'

In this article, I will explain 'micro-environment analysis,' a way of thinking to look over 'the surroundings of your business,' as clearly as possible.

By the time you finish reading, you should have gained some 'insights' to take your business one step further.

What exactly is 'micro-environment analysis'?

When you look it up, micro-environment analysis is often explained as 'analyzing the factors that are closer to and have a more direct impact on your company.' 'Closer and more direct' seems to be the key point.

Specifically,

• Customers

• Competitors

• The company (yourself or your business)

• Suppliers (partners or vendors)

• Substitutes (things that can replace your products or services)

It refers to looking closely at elements like these.

While 'macro-environment analysis' looks at the world as a whole from a larger perspective (economy, society, law, etc.), micro-environment analysis is like focusing on the 'neighbors' directly related to your business.
Click here for macro-environment analysis ↓

Let's imagine a popular ramen shop!

Since it might be a bit hard to visualize, let's think about a familiar example.

For instance, suppose you started a 'ramen shop'.

What if this ramen shop were to do a 'micro-environment analysis'?

That would be,

• Customers: 'What kind of customers will come? Are there many young men? Will families come too? Do many people like spicy food?'

• Competitors: 'What kind of ramen shops are nearby? A shop famous for miso ramen? A tsukemen shop with a line out the door?'

• Your Company: 'What are the strengths of our ramen? Homemade noodles? A secret soup recipe? Great customer service?'

• Suppliers: 'Where do we source our noodle and soup ingredients from? Are there better pork bones or soy sauce available?'

• Substitutes: 'If someone wants to eat ramen but chooses udon or a set meal instead, what would be the reason?'

It's about thinking in detail about your shop's surroundings and the people directly involved, just like this.

How about it?
Does it feel a bit more relatable?

How can you apply this to a freelance business?

So, how is this 'micro-environment analysis' useful for us as sole proprietors and freelancers? Let me introduce a few practical examples I've thought of.

Example 1: Web Writer

If you were to perform a 'micro-environment analysis' as a web writer...

• Customers: What kind of clients are looking for articles? Companies looking for writers strong in SEO articles? Sole proprietors who want to write blog posts?
  

  
  

• Competitors: What kind of writers are there with similar skills and rates to mine? What genres are they good at?
  

• Your Company: What are my strengths? SEO knowledge? Careful listening? Meeting deadlines?

• Suppliers (in this case, partners or tools): What are the information sources needed for article creation? What proofreading tools are used? Are there reliable collaborators (like illustrators) available?

• Substitutes: What is the reason a client would write an article themselves instead of hiring a writer? There is also the option of having it written in-house rather than outsourcing, right?

By analyzing in this way, concrete strategies emerge, such as 'Oh, maybe I should specialize in a more niche genre' or 'I'll make "storytelling that captures the reader's heart," which my competitors lack, my strength!'

Example 2: Handmade Artist

For example, let's say you are a handmade artist selling original accessories.

• Customers: What age group is buying my accessories? Are many people buying them as gifts? What kind of designs do many people prefer?

• Competitors: What kind of works are other handmade artists making? What are their prices? What kind of shops are they selling in?

• Your Company: What is the individuality of my work? Design? Materials? Story?

• Suppliers: Where do I source beads and metal parts? Are there better quality materials available?

• Substitutes: For those who buy ready-made accessories instead of mine, what are their reasons for doing so?

Analyzing it this way, new ideas are likely to emerge, such as "Let's incorporate designs for a slightly younger demographic" or "Let's promote 'one-of-a-kind custom-made' items that competitors don't have."

Summary: Our business starts with 'neighborly relations'!

Ultimately, I felt once again that for us sole proprietors and freelancers to succeed in our businesses, it is important to know yourself and the 'neighbors' around you very well.

"What are customers looking for?"
"What kind of activities are my rivals doing?"
"What are my own strengths?"

Instead of overthinking it, it seems best to start by carefully observing your surroundings.

I'm going to start practicing 'micro-environment analysis' in my own business right away!

Thank you for reading until the end.

I would be happy if this article led to a small realization of "I see, that's what it was!" or provided a hint for your own ideas.

Following me would be a great encouragement.
I will follow back as well ^^