Business expansion doesn’t always have to mean world domination; it can mean deciding to open a new plant or office location a few miles down the road to grow your customer base. It’s crucial for CEOs and business leaders to understand the risks and what the expansion will mean for their company. What might work for other companies, may not work for yours. Tailoring your business plan and marketing strategy to fit your culture is critical to making the biggest impact on the new market you’re entering
Are you wanting to take your business to the next level? If you answered yes, keep reading to see how you can strategically grow your business with these 7 tips!
1. Define your value proposition.
A company planning to grow and enter new markets must be able to clearly identify their value and what sets them apart from the competition. Have a clear idea of why customers choose you and your product or service, as well as why employees would want to work for you.
2. Identify your ideal customer.
If only we could just pick up our current customers and move them with us when we grow… That's why it’s important to know who would benefit from your product/service in order to stimulate growth for your business. Potential customers in your new location may be defined by completely different demographic (B2C) or firmographic (B2B) data, depending on the location of your new site.
3. Develop a Strategy and Business Plan
Expanding your business could be the scariest thing you’ve ever done as a business owner because of all the unknowns that come with a new market. Each market has a different economy, culture, and government that affects how well your company will perform in that market. Understanding the new market you are entering will allow you to develop a localized strategy and business plan, just make sure it aligns with the organization’s overall strategy.
4. Establish a Marketing Strategy.
You are now the new kid on the block; therefore, you have to get your name out there! While you might have the leading product or service in the industry, no one is going to believe you until you show them what you can do. Find the best way to connect with your new customers, whether it be through content marketing, social media marketing, or other channels such as grassroots and event marketing. Tailor your content towards your ideal customer and the local culture.
5. Financial Readiness.
Financial sustainability is critical to company expansion; after all, by this point in your life, you have realized that money does not grow on trees. Be prepared to exercise the due diligence required to confirm your company is financially sound enough to make the move. Take early steps to ensure you are adhering to local corporate policies and procedures. Depending on your situation consider outsourcing accounting, payroll, and taxes. In addition, set up attainable financial goals for your new location to ensure the utmost success.
6. Invest in Talent.
Hiring the right people who are truly inspired and motivated by your value proposition can tremendously impact your company’s growth. Your employees are the first touch point that your customers have with your company. Employees who are dedicated to providing your customers with a memorable experience are irreplaceable and a token to keep when expanding your business. Consider identifying a recruiting partner that understands the landscape of the new market’s labor landscape and can support attracting the best talent to your organization.
7. Build a relationship with your new community.
You can single handedly have a competitive advantage over your competitors by building a relationship and supporting local businesses. These relationships may lead to a new business venture, as well as continue to spread your company’s name. Local Economic Development groups, Chambers of Commerce, and Industry organizations, are all partners worth starting relationships with.
If your company is about to expand its business into a new market, check out this eBook, that goes in-depth into each one of these essential elements to consider when starting a Greenfield Project.
MAU’s array of staffing, recruiting, tech, and outsourcing solutions can find the best fits for your organization, without losing any of your company’s personality or culture. Contact us to get started!