Did you know that only 25% of new businesses make it to their 15th birthday?
Most startups and small businesses fail during their first, second, and third years. The only way to prevent your company from failing is to always look for growth opportunities.
Do you think you’re ready to take your business to the next level? Do you feel you are reaching a plateau, or your products are starting to become stale? Then it may be time for a market expansion.
Reaching new markets can breathe new life into your business and help you achieve even greater success. But before you get started, make sure that your product portfolio is ready for the challenge.
So how do you know that your business is ready for a market expansion? Below are the top signs you should look out for:
1. YOU’RE GETTING MORE CUSTOMERS THAN YOU CAN HANDLE
If you’re constantly getting new customers and your current customer base is growing, it’s a good sign that you’re ready to expand. This means that people are interested in what you have to offer and that your product is selling well.
Getting more customers is a sign of high demand for your products or services. It also means that you’re reaching your target market, and there is potential for even more growth.
2. YOU HAVE EXCESS CAPACITY
Take a look at your production capacity. If you’re not using all of it, it may be time to start looking for new markets. Having excess capacity allows you to take on more business without making significant changes to your infrastructure.
However, excess capacity can also mean that your product is not in high demand. In this case, you may want to consider other options before expanding your business. Check how your target customers respond to your products and how they feel.
This gives you an opportunity to pinpoint any issues with your products and make necessary improvements. Having excess capacity doesn’t always require business expansion.
3. YOU HAVE A DIVERSIFIED CUSTOMER BASE
A diversified customer base is another good sign that you’re ready for expansion. This means that you’re not relying on one or two big customers to keep your business afloat.
A diversified customer base also indicates that you have a product or service that’s appealing to a wide range of people. This gives you the potential to reach new markets, both local and global, with little effort. Customer diversification is key if you’re considering international business expansion.
4. YOU ARE GETTING TOO COMFORTABLE
If you’re feeling too comfortable, it’s time to start shaking things up. This means that you need to find new and innovative ways to keep your business growing.
Stagnation can be deadly for any business, especially if you’re not careful. Your company should always be improving, progressing, and growing. Therefore, it’s essential to always lookout for new opportunities.
If you think you’re getting too comfortable, expansion is one of the best ways to shake things up. Challenging your business to venture into a new market production expansion grid will strengthen it.
5. YOU FEEL OUT OF TOUCH WITH THE COMPETITION
If you’re feeling like you’re losing touch with your competition, it’s a sign that you need to start expanding. Keeping tabs on what your competitors are doing is essential for any business.
You should always be looking for ways to one-up them and stay ahead of the curve. If you’re not paying attention to what they’re doing, you’ll quickly fall behind.
You should also consider conducting a product market expansion grid to see how your products measure up. A product market expansion grid is a great way to see where you need to improve.
You can also fall out of touch with your business. Do you feel that your business isn’t connected to the brand you’ve created online? Your brand should reflect your business and how your employees handle clients.
If there is a disconnect between your business model and your brand, it’s time to go back to the drawing board and refocus. This is a perfect time to consider expanding your market.
6. YOUR COMPETITORS ARE EXPANDING TOO
If your competitors are expanding, it’s a good sign that the market is ripe for expansion. When businesses see potential in a particular market, they tend to move quickly to dominate the space.
This means that there is an opportunity for you to get in on the action and stake your claim in this new market. Competition can be healthy for your business as it helps you grow faster.
7. YOU HAVE ADEQUATE RESOURCES
Resources such as money, workforce, and equipment are essential for a successful market expansion. Make sure that you have enough of each to support your new venture.
If you’re short on any of these resources, it’s best to wait until you have them before expanding. This will help ensure the success of your venture. The last thing you want is to expand your business too quickly and then fail.
8. YOU HAVE A ROBUST MARKETING STRATEGY
A robust marketing strategy is key for any market expansion. You need to have a plan in place to reach your target customers.
Your marketing strategy should include both online and offline channels. You should also tailor it to the specific markets you’re targeting.
9. YOU HAVE A MARKET EXPANSION STRATEGY
Last but not least, make sure you have a solid market expansion strategy in place. This should include details such as which markets you plan to enter, how you’ll penetrate those markets, and what your goals are.
Whether you’re thinking about a local or global expansion, your business is more likely to fail without a strategy in place. So take the time to develop one before moving forward with an expansion plan.
ARE YOU READY FOR A MARKET EXPANSION?
Have you noticed any of the above signs in your business? If so, you’re likely ready for a market expansion. It’s time to take the next steps and make it happen.
But before expanding your business, there are a few key things to keep in mind. First, make sure you have a solid marketing strategy in place. You’ll also need adequate resources and a well-developed market expansion strategy.
Once you’ve got all of these things squared away, it’s time to take the plunge and expand into new markets.
For more business tips, be sure to check out our blog posts.