Expansion is an exciting time for any business, whether a scrappy startup or a blue-chip megacorporation. Achieving your desired financial outcomes demands certainty that the industry you’re expanding into is suitable and will generate a new revenue stream. Rather than looking out the window and taking an external perspective to determine your new vertical, look in the mirror and find your new direction with an internal evaluation! Analysis of your company’s strengths, weaknesses, networks, and business leadership goals are where emerging opportunities and success are born. To seize and capitalize on these opportunities, understanding potential areas to extend into and developing a strong market penetration plan is imperative.
Our expert-formulated approach at Local Marketers helps you to better understand your own company; explores potential markets to expand into; analyzes these markets; and profiles participants in the space. It empowers you to strategically enter the market and become a key player in the industry with your own Go-to-Market plan! Find your Business Edge: expand into a new vertical or explore potential industries with these steps and procedures.
Stage 1: Identify Vertical to Enter Based on Your Business
Consider your company’s strengths and weaknesses, location, network, competition, and other variables that influence which market is prime to enter. Use the following evaluatory steps to identify 3-10 potential markets to penetrate. Local Marketers’ Business Edge Model creates a Knowledge Edge and Product Demand Edge over the competition to help you maximize the impact of available opportunities.
1. Look internally first. Which industries do your company and team know best? Where were your staff previously employed (any work experience outside of your current vertical)?
2. Look externally. Who are your current partners and allies? What industries do they occupy? Are there any potential partners and allies that would grant access or aid in penetrating new markets?
3. Consider your competitors. Who are they working with? Into what industries have they expanded? If they recently entered a new market, there could be an opportunity to displace them.
4. Consider your clients. Do any of your clients operate between industries? If you have a client who you work with in X, but they also do Y, Y may be a great opportunity for expansion!
5. Explore your region. Different areas excel at different things. Look for new markets to enter based on the location of your facilities and faculty. Local businesses tend to like working with other locals!
6. Consider nonprofits and charities as opportunities. Are any operating within your area, or are members of your staff involved with these organizations?
7. Look for emerging opportunities. Laws and regulations are always changing, and new technologies are being deployed which create possibilities for expansion.
Additional Actions and Considerations:
Conducting a SWOT analysis could be invaluable for understanding and determining your company’s direction for expansion objectively.
Follow passions and interests, but don’t let emotions be your guide! Be excited about the material you’re working with while looking for opportunity to excel first.