How to expand into new markets
As a business owner, the growth of your company is always a top priority. However, once you have reached a certain level of success within your initial target market, you will need to seek out additional opportunities for growth elsewhere.
This is known as market expansion and is a critical part of ensuring long-term business success.
What is market expansion?
Market expansion is an important business strategy that focuses on increasing a company’s customer base, revenue, and market share. It can be achieved by either entering new markets or expanding into existing ones. Companies use market expansion to gain a competitive edge over other firms in the industry and raise their profitability.
There are several methods of market expansion available to businesses, such as product diversification, geographic expansion, mergers, and acquisitions. Product diversification involves introducing new products or services to existing markets while geographic expansion refers to expanding into new regions or countries. Mergers and acquisitions involve combining resources with another firm to increase scale and reach more customers.
How to expand business into new markets
Whichever method you choose for your business’ market expansion strategy, it is essential that you do your research, create detailed plans, and ensure that you can get appropriate funding in place before making any decisions. Here is a brief overview of the market expansion process.
1. Conduct research
Performing in-depth research into your industry and products or services will enable you a deeper understanding of where you may be able to expand, either geographically, by targeting a different demographic, or by developing new products and services.
2. Identify potential markets
Analyse the growth opportunities that you have discovered through your research to identify the markets which are the most viable and present the most potential.
For example, do you have the marketing resources available to successfully expand into a new country? Could you reach a new demographic by diversifying your business through new or updated products?
3. Develop a plan
Identify the practical and financial goals you’d like to reach through market expansion, developing strategies as a roadmap to each one. Your expansion plan needs to be detailed, with each step of your journey to successful expansion accounted for.
4. Secure funding
Whatever your expansion strategy, you will need capital to support it. Consider the most appropriate funding options for your expansion plan and don’t be afraid to look beyond conventional lending sources.
While traditional banks may not have the lending appetite to support business expansion, particularly if you are a less established, or younger business, there will be other lenders – like Growth Lending – that have products specifically designed for this purpose.
5. Prepare for growth
With funding in place, begin preparing to put your plans into action. This means building connections within any new markets, implementing a marketing plan and promoting internal changes that will support the market expansion.
Expand your business with Growth Lending
Growth Lending has a wide range of funding options for businesses looking to expand, as all of our products have been designed with growth in mind.
Our new international invoice finance facility is also a unique product to the market, offering tailored funding support for businesses trading overseas, or in multiple currencies. Find out more here.