Finding your Target Market starts by making observations of your current clients, finding similarities between your favorite clients and your company and defining what makes you different from your competitors.
It can be easy to think that your target market is "anyone who wants to buy my product/service." Although that might be a nice thought, how do you market to everyone? How do you speak to such a broad audience? And in reality, do you want to work with everyone, or is there a certain type of client that you would prefer to work with most of the time?
Look at your current customers. Which ones do you spend most of your time working with? Do you wish you worked with some clients less and had more of other types of clients? Sit down and write out what you do like about your favorite clients. Maybe you like that they are open to new ideas, maybe you like that they give you the information you need quickly and they pay on time. Maybe these clients really see the value in the service you provide, and you get a real sense of partnership while working with them. Often, if you look closely, you'll see that you and your favorite clients share a lot of core values.
So how do you get more clients like these? You have to look at the demographics of the types of clients you prefer and write down what business they are in, what size revenue do they earn, where are they located, what services do you provide that solve a pain point for them and what services or attributes does your company provide that they can't get from a competitor?
Do you also notice similarities between your favorite clients? If so, make note of the similarities. These clients should be your target market and should be the clients that you do 80% of your business with.