What should you consider before expanding into New Markets?
Authored by Ramneek Chadha, COO, Xapads Media
One of the constant needs of any business or organization is continuous growth to ensure it stays ahead of various internal and external factors. Yes, as an entrepreneur one must keep exploring new ways to level up businesses, and one way to expand is to recce the markets where one can feel the synergies and common ground to grow. Building your brand in multiple Geos is indeed a smart move but it might come with various unique challenges and it is highly recommended to back your decisions on Compatibility, Market Research, and Strategy.
There are many important things that must be factored in before expanding to new markets (Geos) which further decide the success of such expansion. In my humble opinion, here are some of the major pointers companies must ensure while expanding to new territories.
1. Common factors - Before choosing a new market, look for common ground, and factor in if there is a local need for a product. I believe, to begin with, there should be a fair resemblance with the parent market as that allows a smoother transition for the product launch. Gradually a local product strategy can help the life cycle as per the new market.
2. Market Research - Every market has its local yet unique needs, diversities, and opportunities which must be explored via a thorough research process to check the viability and feasibility of your product/services within the target audiences. Including local leadership in this process can help you to get unbiased valuable feedback from consumers that helps target a market in a better way.
3. Market Strategy - The feedback from Market Research would allow you to adapt to challenges in a more planned way and would also provide insights into changes or modifications required to current services and products. For longer-term and better results, one must be ready to adapt to the market’s needs and target the challenges with a strategy built with a hyperlocal focus.
4. Local Leadership - Appointing a country head is very important as having someone who can connect with your vision & mission while understanding the market well enough plays an important role in the expansion. I believe it is a great blessing to have someone represent your brand and take ownership of good, bad, growth and challenges.
5. Talent Acquisition - Regardless of the market (new or parent), acquiring the right talent is the key to the success of the Products and its offerings. With the right people to carry out the organization's strategy, we can ensure that the message and product’s offering can reach the targeted audiences.
6. Building a brand proposition - Your brand’s name can help you get started in the new Market, but it will be local performance alone that will help you establish your name in the market. Both short and long-term focus must be maintained in the continuous development of a brand and offerings.
7. Financial Stability – Importantly, expanding the business doesn’t come cheap, and so one shouldn’t take the step at the cost of current financial stability. Such steps should only be taken when one can ensure enough liquid funds to run the existing setup and cater to daily needs. I would like to highlight that Market research, growth, and talent acquisition costs can put a great amount of stress on the financial reserves of the company and the last thing one would want is to put the current setup in jeopardy.
As much as a new market brings opportunities it also brings challenges and a lot of research, time, resources, and efforts must be employed to successfully expand your business in new markets and geographies. It is equally important to retain your vision, integrity, financial stability, and values across the regions for long-lasting growth and success.
Nothing can be more exciting for an entrepreneur than seeing their business grow and go places! Personally, I would recommend that if factors allow one should go that extra mile, as in the end, these are the risks and initiatives that can help you establish the brand’s name to the heights you aim for.
DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.