Expanding into New Markets

New customers are waiting in the next town, on the Web, around the world

By Chris Hulse, Founder & CEO, InflectionPointMedia.com

If your clients don’t insist they do business directly with you… your enterprise is potentially ready for expansion. Here are 10 things that will help make your decision easier:

Measure the strength of your existing shop.
Determine if your business can be replicated.
Be crystal clear on what your objective is for expanding into a new market.
Perform market research on any proposed new location or medium.
Be certain you have enough funding.
Consider all alternative growth alternatives prior to deciding to expand into a new market.
Be prepared and understand that your resources will be pulled from your existing efforts and how this will affect your current business.
Establish a timeline to achieve an acceptable level of revenue in the new market.
Have a game plan ready if your expansion costs more and takes longer.
Understand how your expansion will impact your existing clients.

Make a new business plan

Your expansion is a new business venture so plan accordingly. Business plan software has streamlined the growth plan process. Most software programs are geared to startups but you can modify them to create a plan that focuses on expansion.
Try: PlanWrite, Plan Magic and Business Plan Pro provide templates for writing business and growth plans. Outlook Soft is a strategic planning tool to forecast growth.

Find new customers

Use a point-of-sale (POS) system – a computerized cash register that collects customer data – to understand better just who are your best customers. Then reach out to more people like them through a direct-mail campaign.
Try: Request a free quote for a POS system through BuyerZone. Use mailing list brokers like InfoUSA, Americalist, AccuLeads, or Dunhill to figure out how many potential customers you have and to rent lists of target prospects. Then design, print, and mail materials like postcards or flyers to entice new customers.

Find a new location

You’re looking to get closer to more customers so go where they are. If you’re in a retail business, examine a potential area’s demographics – things like age, gender and income – to determine if your chosen locale is the right place to reach your chosen customers.
Try: For a monthly fee or annual subscription, you can access demographic reports and maps from Claritas, which also offers site location reports, site location maps and site location analysis software among other site location resources. FreeDemographics.com lets you create customized market analysis reports for any geographic area. MapInfo’s AnySite software gives an analysis of the trade area around any site and can be customized to include your customer list.

Launch a new product

Your customers tell you they could use a new kind of widget that nobody makes. Jump on the opportunity by developing a product that fits with your brand, your production capabilities and your distribution channels.
Try: Use this 12-week plan for a product launch by consultant Barry Feig. Or hire product launch consultants such as Schneider Associates, Entity Marketing Consulting and OpLaunch to map out a strategy.

Acquire another business

Add a new market by buying a compatible company — and the customers that come with it.
Try: Before rushing in, use a product like Sahakian’s checklist to perform due diligence on your potential acquisition. Or team up with an acquisitions firm like Growth Concepts that can help make a good match.

Sell overseas

Your industry may be mature in the U.S. but primed for rapid growth elsewhere in the world.
Try: Export.gov has an excellent export readiness assessment that rates your company based on just nine questions. Once you know where you stand, move on to the detailed guide to exporting basics by Unz & Co. The U.S. Department of Commerce operates BuyUSA.gov, a site dedicated to matching U.S. exporters to foreign buyers and distributors. Check the U.S. Commercial Service for a list of export specialists at American embassies; it’s their job to connect you with the right people in each country.

Sell online

Find a new market quickly and cheaply on the Web. To start accepting credit card payments on your Web site, add an Internet merchant account to your existing merchant account at your bank. To process payments, set up a payment gateway account. Give your customers “shopping carts” to pick and choose from your online catalog.
Try: Popular gateway service providers include Authorize.Net and CyberSource. PayPal offers a free service for sending and receiving online payments. Leading shopping-cart providers include ShopSite, GoEcart and 1Shoppingcart. Put your online shop in front of millions by buying ads on Google and Yahoo!.