Most business owners enter the business market with one aim in mind and that is; to grow. How many business owners have you come across that do not willfully wish to expand their business or expand into new horizons? Growth of your service or product can be achieved in many ways, this includes: entering into, expansion, there are many forms of expansions such as entering foreign markets, exports or expanding the range of products or services you have to offer.
Entering into new markets, especially markets that are unfamiliar or unpracticed is a difficult step. Establishing the best time to enter into a new market is also not as easy as it may seem, there is no universal time that suits everyone, each business is witnessing a trial different to another, however, we can use different methods to establish whether now is the right time or not.
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How can I determine the best time to enter new markets?
Before taking any major steps related to your business it is important that you undertake the relevant research beforehand, missing this step can have major detrimental effects on the success of your new venture.
Just as you conduct research before initiating a start-up, you must conduct research before expanding into a new market, this includes;
Determine your target market, the consumer trends you are entering into, find out who your competitors are how they’re operating in the market, what challenges they are facing, how well they are progressing. Conduct surveys and perform trials in the area you are looking to enter into.
What are your competitors strengths and weaknesses?
You need to know what your competitors are good at and what they’re not good at in order to evaluate how strong your competition is and what you need to work on in order to stand strong and form an effective strategy in the market. Only enter the market once you know the competitors strength and weaknesses inside and out. This will also provide you research in regards to the trends of the market and market you are targeting.
How shall I enter into new markets?
Consider joint ventures
Joint ventures are a practical form of expansion. This when two companies agree upon working together either in the same location or on the same product. They also share profit and loss equally. This means you have the mind of multiple people working together, which can in most circumstances be beneficial.
Export your products to different geographical locations, once you have established a market in your area, it is now a good idea to expand your products and start exporting. Find an agent that can take on the responsibility of distributing your products in the area and offer them a commission per sale. This agent will be the face of your company so make sure they are providing impeccable service.