5 Tips When Expanding into New Markets
April 28, 2022
Business leaders are always looking for that “next big thing” and opportunities to extend the reach of their products and services to new customers. They also look for opportunities to stay ahead of their competition and grow. If you are one of these leaders, expanding your business into new markets is a strategy you should consider. Even with everything going on in the world right now, you should still explore going global.
In this blog, we offer 5 useful tips to help you as you consider expanding into new markets.
1. Evaluate Success in Your Home Market
When planning an expansion project into a new market, you must first evaluate your home market and your business’s success and stability.
- Are your home market operations generating enough revenue to support expansion?
- Is your brand well established at home and what are some opportunities in a new market?
- Do you have the correct systems and strategies in place to support expansion?
Find answers to these questions by thoroughly evaluating your current business to forecast the chances of success (and risks) when entering new markets. If your business growth history at home delivers promising answers during your evaluation, your business has a better chance of flourishing in a new market. If it doesn’t, you are better off solidifying your home market footprint before expanding into a new market.
Take our quick Global Readiness Quiz to see if you’re on the right track. Once you take the quiz, you can download a FREE customized report for more insights on your organizations’ readiness to ‘go global.’
2. Perform Robust Market Research
Prior to expanding into a new market, make sure you’re choosing one with a consumer base that will buy your products and services. Conduct a robust market research study to review the growth of similar existing businesses in your industry in the market you are targeting. Speak with people both in and outside of your ecosystem, including current consumers and people in the new market. A thorough analysis of your target market will help contribute to your business growth forecasts.
Performing market research will help you determine if your target market is the right place for your business (or not). Always allow data to drive your business expansion decisions!
Some questions you may ask include:
- Does my team have the global mindset needed to work effectively and efficiently with colleagues in a new market?
- Do they have the ability to learn to appreciate a diverse consumer base?
- Have they worked previously on a global team or with colleagues around the world?
Answers to these questions about your organizations’ culture are important to consider. Having the right team in place BEFORE expanding into a new market – or the willingness to adapt your time during the expansion process – is critical for a successful outcome.
4. Examine the Potential of Your Team
When businesses expand into new markets, they require an even greater amount of effort from the team. Business leaders need dedicated individuals with expertise across the entire organization – from marketing and sales to operations and management. As a business leader, it is impossible for you to keep tabs on every detail of the operation, so you need to make sure the team you have in place is capable, trustworthy, and up for the challenge.
Ask these questions:
- Is my current team ready for expansion and accepting of working through new challenges that may come with it?
- Are they open to working with colleagues in a new market?
- Will they be flexible with changes in their role or duties?
- Will my team adapt their business function in a new market?
If the answer to all these questions is a yes, then you should have greater confidence in your team when you begin your global expansion journey.
Expanding into a new market is one way to strategically grow your business but doing so comes with risk. However, if you consider these 5 tips carefully, you will mitigate some of the risks other businesses may overlook and ensure a smooth expansion for your company.
Think big, but with the right plans and strategy in place. Do your research, be culturally aware, have the right team in place, have a dedicated budget, and make sure the Board is on board!
A little unsure of your “next steps” but interested to see if you’re ready to go global? Take our quick self-assessment and receive a FREE REPORT in less than 4 minutes.