Tuesday, December 24, 2019 / 11:50 AM /Sponsored Post / Pete McAllister / Header Image Credit: Talent Guard
Entering a new market is exciting, but it can also be scary. Whether you are starting a new business or expanding, you must figure out how you will gain a competitive advantage in a new environment. There are risks involved in this bold move, and you can't afford to take them lightly. But with the right strategy, you can minimize the risk. The key is disciplined approach, and these steps will show you how to go about it.
1. Figure Out Marketing
Marketing is key in any business, but when entering a new market, you must have your facts right if you want to succeed. You need to identify your target market and know what their needs are. If your business is an electric company, for instance, you must know the services people like, if they are willing to pay for the service, and their shopping habits.
This information will show you the entry points that will minimize your expenses while maximizing your revenue. For example, you can make electrician shirts and other merchandise and give them to potential customers in a trade fair. When people wear your shirts as they run errands, they advertise your company. Electrician shirts are also high quality so your staff can use them for longer, even after being exposed to different factors all year round.
2. Have a Detailed Plan
Have an action plan that clearly outlines your goals and implementation strategy. These should include all marketing plans, campaigns, and timelines to set everything in motion. Set clear milestones with key stakeholders and communicate expectations to the relevant personnel. Define all processes such as sales cycle, so everyone knows how to pursue and close leads.
3. Run a Test
A pilot project is crucial, whether you are planning on spending millions or not. Although numbers don't lie, it would be irresponsible to work with statistics without testing them first. Your test should be big enough to give accurate depictions, but not so big as to use up a lot of resources and commitment. Aim to reach a few key milestones in the pilot project, and to iron out everything else during full development.
4. Assess Internal Capabilities
Check how much you can leverage. Determine the core competencies you can harness and how much of these you can spare. Hire what you lack to create a team that's blended with new blood and ideas, and older experienced employees who can help ground your company. Assessing your capabilities reduces your cost overhead, and leaves your mother company stable while giving the new venture a boost.
Plan for success and failure. If you achieve phenomenal success, what will you do? If you fail, how will you exit the market? Will you sell or expand if you do well, or fold and cut out if things don't go as planned? Planning for the future is as important as researching your market. Instead of waiting until the last minute, complete the puzzle by knowing what you want to achieve and what you will do if you don't realize it.
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