The ultimate goal of every business is to grow. This doesn’t mean every business wants to become a multinational conglomerate. It does mean, however, that every business owner wants to earn a bit more and work a bit better.
Luckily, the means to achieve it are numerous and varied, so you will be able to choose a course of action that best suits you.
In this post, we’ll be looking at the ways you can expand your business into a new market and help it reach a new audience.
Consider Your Goals
Before you start looking at concrete new markets to expand into, take a good look at your own business and its goals. What does your current business plan say? Where do you want to take the business in the next five to ten years?
Understanding why you want to expand will help you choose the right market and target audience. For example, if you would just like to open new premises, you will need a different approach than if you would like to launch an entirely new line of products.
Analyze the Market
Once you understand the motivation driving the expansion, you can start doing research.
You will first need to analyze the target markets themselves. This means getting to know the companies already present, the intricacies of the target market, the potential earnings, the likely obstacles, and so on.
You will also need to do some competitor research. This will involve analyzing specific businesses and how they operate. What kinds of prices they have, who they market to and how, and what you can bring to the table will all play an important factor.
Talk to Your Audience
Speaking to your current customer base can also provide a lot of insight into the best way to expand.
You can conduct surveys or organize focus groups. You can have chats with the people who come to your locations, or you can ask them a couple of friendly questions over email or phone.
When taking their recommendations into consideration, don’t jump at every idea they’ve presented. Some of them might not be feasible, while others might only be of interest to a small portion of your audience.
Focus on the ideas that are either the most original or that have been suggested by the most people.
Acquire an Existing Business
If you are able to, you can also consider acquiring a business that is already operating in your new target market. This business will already have a customer base and its own product or services. The previous owners will have already done plenty of legwork, so you’ll have a solid foundation to build your enterprise.
Before making the acquisition, carefully consider the state of your finances and the business’ values and current standing. You want to merge with someone who shares your values and goals and whose target audience is as similar to yours as possible.
Also, check out the various acquisition financing options available to you to make sure you can afford the merger.
Hire the Right People
Expansion often comes with new hires. If this is the first time you are growing your business, it’s very important to choose the right people.
In small teams, everyone’s contribution matters much more than in large ones. Make sure to cast a wide net and carefully consider what roles you need to fill to back up your expansion process. If you suddenly have a lot more staff than you are used to, you might want to think about hiring managers and HR people. If you can no longer handle all of your own tasks, you will either need to find an assistant or delegate some of your workload to a junior member of the team.
Make a Detailed Plan
Once you are sure about the new direction you want to take the business in, take as much time as you can and map out the road you’re about to take. This will mean writing a whole new business plan. It will need to take into account the old one but also plan the expansion, the next set of goals, and the way to achieve them.
You will also need to create a new marketing and sales plan. If you are reaching out to a new target audience, you will also need to create new buyer personas.
The more detailed and precise you are able to be at this stage, the easier your expansion will be. Try to foresee the most likely obstacles and plan for them, too.
Wrapping Up
Before you try any of these six ways to expand into a new market, consider your current business plan and your ultimate goals. Then, choose the method that will best align with them, and take your time planning out a detailed course of action.
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