4 Strategic Steps to Take When Entering a New Market

Do your research deep, be honest, and determine which resources you already have, and which ones you will need to develop further.

These are four important first steps to follow prior to entering a new market:

1. Have specific goals

To whom do you want to sell your product?

Get deep, have a buyer persona, or personas, but be as specific as possible. Look into demographics, habits, location, and financial status.

If done right, this step will be the foundation for everything else.

Do you want to achieve higher revenue? Make some predictions about how much revenue you will see in your business in what time frame.

Want to increase brand awareness? How will you measure it?

You get the point. Have SMART goals - Specific, Measurable, Actionable, Releveant, and Time-bound goals.

2. Research targeted market

(Know your competition, your competitive advantage, and local regulations)

When you have decided on your goals, it is time to research your targeted market.

Get to know local regulations. Speak the language of your targeted market (translate your website).

Research who is your competition in this region. What are they doing? Is there a part of the market that they do not cover? Are customers satisfied?

You should try to fill the gap in the market - this is the ideal case. Or try to find part of the market where people are not so satisfied with the options that already exist, and try to do it better/faster/more conveniently.

Clarify your competitive advantage for that specific market. The market can be the same as the one you are currently in, but it can also be different.

Choosing the right new market to enter is based on your strategic goals and your ability to satisfy market needs.

Is there a need for these kinds of products, and if there is, how much are they willing to pay for it?

Do your research, and save your time later.

3. Analyze internal possibilities

(Finances, competencies, what to leverage, and how)

When you have set your goals, and researched your targeted market, the next step is to analyze your own resources.

What exactly do you need to have to successfully enter a new market?

What skills do you already have inside your company and team?

And what skills do you need to develop or leverage?

Prioritize what is the most important to develop and it can be done within the time limits that you set. Maybe this will not be easy, but the disciplined process in this phase will save you a lot of time and effort afterward.

Do you need to hire a qualified person with a specific background tied to the targeted market? Maybe someone part-time in the beginning?

Those are all decisions that need to be made.

The financial aspect is also crucial.

How many resources do you have for the expansion?

How much money can you invest without harming your already developed market?

Usually, costs are higher than expected.

However, there are ways to optimize costs with the right tools, such as translation management systems, and part-time positions.

4. Develop marketing entry options

(Speak your customer's language! Have plan A and plan B)

There are many ways to enter a new market.

One of the natural first steps is to translate your services into their language. According to multiple studies, people are much more likely to buy something that is in their native language - see this Can't read won't buy study.

The most effective strategy for you is to have plan A and plan B.

Maybe it is a smart idea to enter the new market via a partnership with someone that is already positioned in your ideal market.

If you have a strong sales pipeline, maybe you can start with organic growth in an emerging market.

The main focus in this stage is to develop a business plan and implementation work plan (including milestones!) based on your business goals and current situation.

Conclusion

Entering a new market is a challenging, but most often necessary step to growing your business.

Calculate your risks, and costs, and try to predict as many aspects as possible.

There will always be stuff out of your control, some market changes that you did not see coming. However, with these steps, you are lowering your risks, and increasing your chances for success, growth, and expansion!

Good luck!