There’s an old saying “knowledge is power” and when it comes to your business, entering a new market is exactly that. If you are thinking about expanding into a new market, there are often a lot of unknowns. It’s a bit like stumbling through a dark alley with no lights. If you don’t know where you’re going you can run into serious troubles.
When entering a new market you need to do your market research to learn:
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Who will buy the product?
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How big is your potential customer base?
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What are the product features the customer is looking for?
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What’s the positioning strategy so that it will appeal to potential customers?
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Who has tried, succeeded, or failed in this new market?
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What is your budget for introduction into the new market?
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What is the current economic climate and how does your entering a new market play into this?
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Is there competition in the new market?
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How long has the competition been in business?
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Should you start a business online or a store?
These are just a few of the questions you should be answering before making the decision about whether or not to enter a new market. During strong economic times the market is much more forgiving. However, during tougher economic times the market is slow to welcome any new players, which is yet another reason to ensure you do your homework.
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You should consider having a market evaluation completed. This is especially important so that you have the knowledge to make the right decisions for your business. Guessing simply does not work if you want your business to be successful over the long haul. While you might get lucky every now and then, it’s no way to plan for your businesses future.
You should already have a business plan in place. You can use this to expand on or create a new business plan for the new market, depending on what your entry strategy is. Don’t overestimate what you can accomplish and how fast you can accomplish it. Base your growth on real numbers and real stats. You can also get a lot of knowledge from the competition in the market you are thinking about entering, both on the propensity for growth and on market saturation.
Entering a new market can be exciting but it can also be disastrous. When you are armed with knowledge you will be able to make sound business decisions.
