⬇ Download in PDF: Questions you should ask before your business enters new markets
They say growth is the only evidence of life – if you are growing, you are alive. This holds true for individuals as much as it does for a business. You may be a textile business with a base in India or a technology start-up with home in California, it is growth opportunities that you seek in order to flourish and prosper. This, after all, is the ultimate goal of all businesses that are ever started.
One indicator of success and growth is making a mark within your original market. Once you are a known name in your area of origin and expertise and your brand has carved a niche in the market where it was born, you know you’ve made the right start and that you are working in the right direction.
But, what next?
Leading your local market can be a short term goal but is definitely not the final destination that you should settle for, especially if you’ve managed to excel in your home ground. At this point you might be catering to a certain number of customers, and your sales might have reached a set mark – however a local market has its own limitations and hence there will come a saturation point for your business if it is operating only locally. This is when you must look at new markets.
If you can’t further grow within your original market, expanding into new markets is a very good step to boost your sales revenue, increase the profitability of your existing business, take your brand to more customers, and increase brand awareness.
In recent times, it has become even more essential for business to think of a global presence. The pandemic-hit world is in need of more businesses that operate in more than one market. The demand for products and services has crossed borders and continents thereby increasing the need for businesses that work internationally.
However, expansion to a different market is not always an easy decision to make. Introducing your product to a new market or taking your business to an alien land comes with certain risks and challenges. So, if you have been considering taking your business global, there are some vital questions you should ask yourself before starting.
1. What benefits is your business looking at with the new expansion?
2. Is there a demand for your product/idea/service in the new market you are seeking to enter?
3. What are the things you will need before you take your business to the new market?
4. Who are your potential new customers?
5. Why, when, where, and how they will buy the product or service – what will be the channels of distribution?
6. Are you sure there’s a demand for the new product or service at a profitable price?
7. And last but the most important question – who will be your local partner in the new market for initial guidance and navigation?
Once you’ve got answers to these questions, you can sit down to evaluate the WHYs of expanding to a new market. So why exactly is it recommended that you should take your business to new markets?
Increasing sales and revenue potential is probably the most important goal that businesses seek to achieve with expansion. Additionally, gaining a new customer base, getting access to a new set of customers, gaining a competitive advantage over industry peers, saving costs, and building brand value are some of the other reasons why you should look at international markets for expansion of your business.
Expansion not only widens the horizon for your business but it also opens a plethora of opportunities for it to find a purpose and work towards a greater goal of serving humanity. Expansion is synonymous to growth and growth is what we all seek!
READ – The art of expansion: How to take your business to new markets and all you need to know
Take a deep dive into everything a company of any size needs to know about business expansion.
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