Once their business reaches a peak of success in its core industry, many business owners look with enthusiasm to expand their brand into other industries. If this is how you feel at the moment, hear us out before proceeding.
The Covid-19 pandemic and it’s counterparts have introduced new methods of working, living, and socializing; resulting in many businesses to shut their doors and for others , whereas others found themselves soaring in popularity. Chances are, once you’ve noticed that your products hit a peak, you are seeing a plateau in profits and customer engagement. Don’t make the mistake of panicking in this situation, the solution may be to penetrate into a different market.
The idea of entering a new industry when you’ve already established your brand may seem daunting at first. But don’t worry; we will go over several helpful tips and tricks you can use to expand your business.
4 Steps To Expand Your Business Into A New Market
As with any significant step in business, MCDA CCG’s. CEO, Michael Rash, states, “Before taking on a task which is set to push the boundaries of your business, it’s crucial that-as a business owner-you have a firm understanding of your finances and the capabilities of your staff.” Without a comprehensive knowledge of your core business components, you may push your business into an area it isn’t capable of surviving in. To maximize your chances of success Ensure that you embark on this project with an established company, a strong team, and a charismatic attitude.
Now, time to dive in! Here are the steps to strengthen your chance of expansion success.
- What pain point do you want to solve?
The reason your business continues to overcome obstacles and continue to grow – you noticed a sizable problem, created a solution for it, and provided it to those who experience it. The chances for success simmer down to one simple idea, one where you can better build a solution when you have a firm understanding of the issue at hand.
I like to take notes whenever I find myself thinking, “I wish I had” or “You know what would make this easier?” Once you have a few ideas jotted down, perform a thorough search to see if anyone is offering a product that does exactly what you wished for at that moment. If you can’t find anything that matches your needs, you may have just discovered an opportunity to break into a new industry.
We should mention that you have to consider your product selection and industry when looking for pain points you’d like to solve. You don’t want to branch out to a brand new industry with the same website. Similarly, you don’t want to rely on tools that work well for one business model but not another.
Understand that while you may have some intriguing ideas, they are not all worth pursuing. Expanding your brand into another market is a complex project, and unfortunately, business owners tend to ignore their existing customers. Before exploring outside of your industry, ensure to maintain adequate staff, funding, and resources to keep your current customers satisfied.
- Leverage Current Customers
Your current customers keep your company running, work on expanding it by gaining expansion perspective through their eyes. Yes, you’ve related to a shared pain point among them, but they are still a dynamic audience. They have other pain points, preferences, and desires, and your current product certainly doesn’t address every single one of them.
Invest your time in engaging with your current and potential customers by publishing surveys on your website and sending them to email subscribers. These simple yet effective surveys will help you assess the gap of current product satisfaction and the untapped areas which can benefit from improvement. When you send surveys to your customers, ask specific questions regarding your current product features to gain insight on ensuring it’s longevity in the market.
To gain additional insight, explore social media platforms such as Facebook and Instagram to communicate with your current followers or those in an industry you’re interested in entering.
- Learn about your future competition
Unless you’re creating an entirely new space, several businesses are already thriving in the industry you’re hoping to access. Gain your competitive edge immediately by assessing your competition. Build your SWOT analysis to determine the weaknesses and strengths of your competitors. Once you see what a company is failing to do, adjust your strategy accordingly to make your product more desirable.
Let’s say you tried all of the biggest email marketing brands, and they all lacked a comprehensive onboarding program. You can take this information and create a detailed online course introducing your product and specific features to new customers. This seemingly small quality of life change could be just the thing you need to separate yourself from the competition.
If you take the time to look into your competitors, you’ll end up in a stronger position when your product launches.
- Partner with other brands
Chances are, you’ve made reputable relationships among industry experts throughout your time as a business owner. Consider partnering with one or a few of your contacts if you’re worried about the financial risk or workload that comes with entering a new industry.
When building partnerships with other brand leaders, you combine resources with another person to reach a common goal. The time, experience, and resources from two different parties can help fuel the success of your new endeavor.
Probably the most significant advantage with a partnership arrangement is you can appeal to a wider audience, instead of relying on your existing customers entirely. Furthermore, you can expand your reach by building a joint marketing and business plan with your partner.
Despite what you may have heard, penetrating a new industry is not easier than starting a business-in fact, it’s just as difficult. As we’ve mentioned before, ensure the stability of your current business before venturing out into a new territory. If you need help in assessing and ultimately deciding if your business is ready to take this next step, our team of business experts at MCDA CCG, INC. can help you. Or, maybe you and your team are certain that it’s time to take your business to the next level. In this case, we strongly recommend to embark on this journey with those who understand specific factors in varying industries. Headquartered in Placentia, Orange County, California, our team can ensure your expansion success with our demonstrated success in even the most unique markets.
Contact us today for a free, no-obligation consultation!