Expanding your business to a new market is a great opportunity and an intensive endeavour. Founders, when they eye new markets, need to consider multiple factors and evaluate the best strategy for them.
Previously we introduced how companies can identify if they are ready to expand, but in this article, we will be exploring what to consider and do to prepare your mindset for a market expansion.
Going into a new market with the right mindset is a very important area where founders need to evaluate deeply. Through our support of founders at multiple stages in their growth, we have identified three key mindsets that enable a successful approach to a new market.
When approaching a new market, there are multiple factors to consider, finances to double check and instincts to follow. However, it is easy to be blinded by the opportunity that some may miss the obvious red flags or hurdles that need to be addressed first. When evaluating if your company is ready for an expansion, keep in mind that you need to be realistic, take a step back, and try and evaluate from a different perspective.
New markets usually indicate new teams, new customers, and new partners. But what is often also forgotten is that among all these ‘new’ items, you are also dealing with a new culture and way of working. Time and time again, we have seen startups fail to recognise that they need to adapt to, and learn about, the new culture and market that they are entering. This means recognising your assumptions, and being flexible enough to change and adapt for your business.
Approaching a new market requires strategy and deep analysis. Founders should take a step back and look both internally and externally at their business and evaluate if they are ready to expand. Not only do you have to look at your capabilities, your team and financials to validate that your reasoning to expand is solid, but also explore the opportunities and potential of the new market. One item to also look out for is how you will secure your pipeline in the new market. For example, if you have secured customers in the new market organically through reputation, or built a network of potential partners by joining groups or through introductions, you may have strong indicators validating your reasoning. However, if you are expanding due to a new partner or customer generated from a chance meeting which you are unable to replicate, then chances are you need to reevaluate the market.
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This article is part of the Understanding Market Expansion Series, stay tuned for more articles and insights.