Identifying your ideal customer's avatar is important because it helps you understand who you are speaking with. Building your business online is no different than talking to an interested local business owner in person. You must understand who they are, what their background is, why they want to grow their local business and determine if they are a good fit for you online marketing business. And YES, you MUST choose the people you want to work with.
After you create your ideal customer's avatar, you will be able to speak to that specific person's problems and offer solutions. DO NOT skip this step. Otherwise you will waste a tremendous amount of time and money trying to target the wrong people trying to grow your business.