With the current global market, your business stands to experience rapid growth. That is if you follow these five savvy steps! Learn new strategies inside.
With a global market, there is almost unlimited potential for growth and expansion in most businesses. As a business owner, if you’re ready to tap into those new markets, you need a solid business strategy.
Following data analytics and watching the trends in markets are essential if you want to develop and expand your niche. Without a plan, it will be difficult, if not impossible, to get your business through the lows and beyond the competition.
It’s a common — and positive — aspect of business to notice your needs changing. As they do, you’ll slowly hit the ceiling of your current market and evolve into new target consumers.
As your business grows, your strategies will change. These tips will help you expand into new markets with a plan of action to get you started.
1. Determine Your New Market
You’ve already done the work to decide on your previous target demographic. What you’re offering now, though, might not be geared toward those same consumers. It’s time to redevelop your ideal customer persona.
Build that customer as thoroughly as you can.
Who are you marketing to? What do they do from the moment they wake up until they go to bed? And what are they dreaming about?
When you understand their hobbies, job, income, and personal lives, you know who to gear your advertising toward. From there, get to know all the demographics you can about those consumers.
How, where, and when do they shop?
What problems do they need help solving?
How can you meet their needs?
Immerse yourself in the life of your ideal target consumer. Then, you’ll understand how they think and how you can convince them that what you offer is the answer to their problems.
2. Know Your Competition
If you have your eye on a new consumer audience, chances are other businesses do, as well. This doesn’t have to deter you from expanding your clientele, but you should do so strategically. Get to know who your competition is or could be so you can prepare for any obstacles that arise.
You’ve done the market analysis to figure out who your consumers are. Now it’s time to engage in competitive analysis, a science that helps you decide how to stand out from the crowd.
With a potential global market of businesses as your possible competitors, this can be difficult to predict. You’re not going to be able to account for every variable. However, whatever you do ahead of time will help you prevent more problems down the road.
Take time to research your competitors.
Who are they, and where do they service?
What do they offer?
How are they recognized?
How can you compete with their strong points and use their weak ones?
This is where having a niche and a unique brand is essential. Competitive analysis is a method to use to see what’s already out there, so you can make your business stand out.
3. Develop Your Offering
You probably already have an idea of where you want to go next with your business. Now that you know your target market and competition better, you can be more deliberate with what you’re going to offer.
If it’s the same thing you were already thinking about — great! You’ve got a headstart on the next expansion steps.
If it’s not, though, now is the time to figure out what you will provide to your consumers.
Will you take what you currently offer and revamp it? Or do you need a completely new service or product?
Whatever your answer is, before you do anything else, develop a plan for this to happen.
From inception to rollout, is it feasible? What’s the timeline, and who will you need to get on board with you for it to be successful?
4. Analyze the Trends
Like the stock market, you can ride the highs of a new market, but are you prepared for the lows?
Before you jump right in, get to know the stability by analyzing the market trends.
Is it a growing market, or is everyone jumping ship for a new, improved product or service?
Supply and demand is the key to a successful expansion. Your long-term business plan should take into account potential dips and rises.
Make sure you have an exit strategy in place just in case you decide it’s not working for you. But one low period does not mean your expansion is a failure.
Check the trends. It might be a dip you foresaw, with a rise just around the bend!
5. Budget Your Resources
Armed with your new knowledge and the results of your analyses, it’s time to take action and make a plan.
What will it take to go from idea and research to the release of your service or product?
Don’t design the steps in your head and think you know where you’re going. Instead, put it all down on paper in a strategic action plan. Taking a formal, calculated approach ensures that you’ll cover all your bases.
With this plan, you’ll need to know all your resources and what to expect.
Consider these pieces of the puzzle as you develop your goal steps:
● Make a plan that includes your capital and inventory currently. What staff do you have that will rollover? Will you need new people?
● What technology do you need versus what you have? How much will that cost?
● Will you have to outsource tasks? How will you raise funds to get started and get through the slow times?
Most importantly, never plan to be successful right away. If it happens, that’s wonderful!
But most new businesses feel the hit to their pocket with expansion. If you’re not ready financially to handle that income deficit, it might not be time to do so yet.
Markets are always changing as technology evolves and the world adapts to new societal needs. When you see that next big thing on the horizon, and you have what it takes to join the industry, it’s exciting!
Savvy entrepreneurs know not to jump headfirst into a new market. These tips will help you expand your business with calculated risks and the best odds for success.
Janey Ha is the business manager at Mariposa on 3rd. Janey has over eight years of experience in property management with a strong background in hospitality. She has worked in many different types of communities and is a local to the Koreatown/DTLA market.