How To Enter a New Business Market Masterfully

When the market is tough and about to turn hostile, it’s no wonder that some business owners consider taking their brand into a different territory. Especially when you are looking to grow your business and prosper beyond what your current market seems to be able to do; yet, a new and unknown territory can turn out to be a battlefield just as littered with fallen businesses as the one you’re in. 

Learn to safeguard your business when expanding into a new market and increase your chances for finding success. A proper assessment and analysis, as well as the right resources, can do a lot to give you a good foundation, making it a bit easier to find your feet. 

#1 Basic Market Analysis 

Although most business owners who are about to embark into unknown territory understands the importance of analyzing the market, not everyone seems to realize how thorough it needs to be. 

Assessing the market goes beyond figuring out what it needs; during this analysis, you should gain an in-depth understanding of market growth rates, competitors, potential barriers, as well as the forecasted demand. 

The reason so many businesses struggle with finding a solid foundation when expanding vertically is often due to a lack of planning and risk assessment. Entering a new market is no easy job - and when your current market is tough, it’s a big chance that the new one will be just as challenging. 

A lot of data gathering and interpretation is called for during this stage, and you will benefit from hiring professionals to ensure you can formulate a reliable market penetration plan. By doing this the right way, you’re not only giving yourself a head start in the unknown territory - but you will also make yourself super recession proof and safeguard your brand on all fronts. 

#2 Assess Internal Capabilities 

How you choose to enter the new market will often depend on this internal capabilities assessment. The different options, such as buy, build or partner, is driven by this and as the business owner, you should have a clear understanding of which option is right for you. 

Consider what kind of infrastructures you have in place, how much of your core competencies you can leverage, as well as other channels to the market such as sales and other business relationships that can help you on your way. 

#3 Selecting Markets 

With all the data you have gathered so far, the internal assessment and the market penetration plan you have formulated so far, it’s time to get to work. The market you choose should, of course, be a strategic decision and based on your business’ abilities to serve it. Ask yourself questions such as what kind of gaps there are in the market, how you can fill them, and whether you’re able to do this better than your new competitors. The good news about this is that you’re offering the market something new; if you find that gap and serve them at the right price, you’re bypassing your competitors without even noticing it. By failing to assess the markets right, on the other hand, you’re increasing your chances of walking right into failure. 

#4 Market Entry Options 

Finally, you have a few options on how to enter the new market and increase your chances of finding your feet as soon as possible. The assessments you have done so far will help you to determine whether an organic growth is the right approach - or if a partnership is the better option. When you already have infrastructure and sales channels in place, you can benefit from letting it grow organically. 

An entirely unknown market, on the other hand, might swallow you whole if you attempt to let it grow organically - a joint partnership may, therefore, be the right option. Each of these choices will also come with their own challenges and requires a detailed plan in order to succeed. 

Entering a new market is kind of like marching into the enemy’s territory. If you know nothing about them and the kind of risks you’re facing, you won’t last long at all. 

Enter And Excel Without Error

By realizing the dangers and investing enough time and money into analyzing it, you’re doing a lot to safeguard your business, though, and you might be able to set root in a place with higher chances of growth and success. Just like every business has its quirks and nuances, every market looks a bit different; how well you approach it depends solely on the amount of work you do beforehand.

I hope you enjoyed this article about how to enter a new business market with your lean startup.

Interested in more articles about building a business?

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Published by Michael J Schiemer
Owner of Bootstrap Business
Money - Marketing - Motivation
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Mike Schiemer Builds Better Business

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