Market expansion often helps a business to get exposed to a broader audience which in turn helps in improving sales margin, thus resulting in increased profitability. In a research, it has been proved that market expansion is considered to be one of the best options to revive a dying business.
Even for a successful business with a stagnant growth, venturing into new market demographics might be the ultimate solution to induce growth.
So, if you are planning to expand the existing market for your business, then that is excellent news! However, you must always remember that your business might not be ready to undergo expansion right at the moment. So, how do you know when your company is ready for the new journey?
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Market expansion might be your call only if your business fulfills the following signs!
1. You have a steady customer base
A steady base of loyal customers is a tell-tale sign of the fact that your customers are satisfied and happy with your products and services and that there is a constant demand in the market. If that is the case, then you must consider market expansion.
2. Customers are asking you to expand
Now, this is obviously a positive sign! If your customers are asking you to expand, then there are high chances that market expansion should be your call. There is no bigger heads-up than being asked to open a branch somewhere by your customers.
3. You have made profits in the last three years
This is very important. I’ll tell you why! A steady profit margin ensures that the demand is not fluctuating or temporary. It gives you a sure sign that with market expansion, you are doing the right thing for your business.
4. Increased demand for your industry
If the industry that your business belongs to is expanding, then you should consider expanding the market for your company without giving it a second thought. Again, if you see that there is a demand for products that are related to the goods that you sell, you can think of expanding.
5. You are financially ready
Venturing into new markets to induce growth for your business is a good option only if you are financially prepared for it. So, make sure that you have a steady flow of cash to fund the entire process.
6. You do not have room for more
Literally, if you feel that you cannot handle the rush in the little space that you have rented, then it is surely time to expand. In addition, if you have to turn away your customers, then expansion might be the right decision to take.
5 Ways to Expand Market for Your Business
Now that you know if you should be expanding the market for your business or not, let us talk about the different ways in which you can induce growth of your company!
Here are six small business expansion strategies that might help you to take your business to the next level:
1. Adding new products/services
The first way to expand your market would be by introducing a new line of products and services. But before that, make sure that you conduct extensive research about the demand for the product and the tentative cost of starting its production. Make sure that the profit margin is high so that your production costs can be covered.
For immediate feedback, you can ask your existing customers about it and see how they receive the idea. The demand should not be the sole factor to consider. See to the fact whether the decision is a feasible one or not.
2. Target a new audience
If you adopt this strategy, all you need to do is take your existing products and services to a new segment of your market.
Make it a point to tailor your current product according to the needs of your original target audience so that they get interested in buying it.
“Venture into different segments that target different demographics. For example, if you had been providing Australian assignment help services only to schools students, you can expand your market by targeting the college students of Australia. This way you are still selling a service that you were already engaged in but to a different age group.”
Says Ben Kendrick of EssayAssignmentHelp.au
3. Sell more products/services to your existing customers base
This is all about delving deeper into the needs of your current customers and delivering their demands. Get your R&D team to conduct a research to identify the customer needs and complaints.
Take their feedback into account and make the necessary changes in your products or services to keep your present customers satisfied. This will ensure that they remain loyal towards your brand, thus fetching a higher sales margin.
4. Venture into new geographical territories
You can consider selling the existing products or services in a location that is different from your current location. For example, if you have a retail store, you can consider opening new branches in different parts of the city. You can also set your business for franchise selling. But before that, you must check out the most feasible locations for your business.
Consider the opinions of your customers in this case and opt for a location that they are requesting you to open a store at. At the same time, do think about the kind of advertising that you will have to invest in the new location.
5. Tap into new sales and delivery channels
The entire world is buying and selling over the internet, and you should join the e-world too. Establishing an online option might prove to be more profitable than establishing a new branch. For example, if your business is based in New York and you have potential customers who want to buy from you in Montreal, then the idea of setting up a retail store might be a bit of a hassle.
Instead, opt to tap the power of the Internet and set up an online business. You can invest in a team that can build you a responsive website so that you can maintain your online presence and expands your business by selling to farther locations.
6. Explore your business in a new vertical
This option will not be for you if you are planning on playing safe because it is more about experimenting and taking a risk. To give a growth boost to your existing business, you can explore a new vertical and start another business that is related to what you are already doing.
You have no idea how magically this can affect the size of your business and bring about a remarkable change in the ROI almost overnight.
To help you understand, let us see what Will Stevens, the CEO of DissertationProviders did – Suppose you have an online tutoring help site that specializes in providing live tutoring sessions to students. What you can do is you can start an assignment help service alongside the live-tutoring business.
So that next time a student wonders who can help them with a chapter they are stuck on or wonder, “Who can do my assignment for me?” – The solution to both the demands lies with your brand.
Venturing into a new market is a task that is easier said than done. So, before you take up any of the above-mentioned expansion strategies, make it a point to keep the following tips in mind!
- Clearly define the goals and objectives that you intend to achieve through the growth in the scale of your business. Your goals can differ from gaining a new customer base to opening a parallel industry.
- Make sure that you have a strong financial foundation so that in case your idea falters, you can survive the loss.
- Consider the tastes and preferences of your customers – both new and old, so that they are always loyal to your brand, irrespective of the decisions that you take.
- Before you go about the process, remind yourself that market expansion is not an easy task and will require extreme expertise. So, you should have a reliable and efficient team which can do the needful.
Market expansion for your business is certainly not a small step. It involves a lot of planning and dedication. But, with the above tips and strategies, we are hoping that we will soon get the news of your business, making it big and helping you to become a global player.