As your small business grows, you’ll be faced with many decisions. One of the biggest decisions you’ll need to make is whether or not you should expand into new markets.
Before you seize the opportunity to enter a new market, you need to evaluate the pros and cons of the expansion.
Do your research before you jump on an opportunity, because you could put your existing business in jeopardy if the expansion is unsuccessful.
Ask yourself the following questions so you understand how the opportunity will affect your business now and in the future. Once you have all of the facts, you can make the best decision to reach your goals.
1. Current Environment
How large is the new market and is it big enough to positively affect your business?
What other companies are competing within the new market already and is there really an opportunity for you to bring something different to the market that will enable you to steal market share?
How much of a financial investment is required to enter the new market and operate effectively within it now and in the future?
Can your existing business afford to re-route money, employees, and other resources to the new market opportunity?
What kinds of technology investments in equipment and training are required to enter the new market and can you afford them?
6. Future Potential
The new market might look attractive today, but what is its potential in the future?
7. Legal and Compliance
Are there any legal or compliance issues that could negatively affect your success entering or operating in the new market?
Are the consumers in this market an appropriate match for your existing brand and products or will you need to launch new brands and products?
What are the barriers to entry into this market and can you overcome them quickly and affordably?
Why do you want to enter this market? Is it truly right for your business? Does it match your business goals?
This post is sponsored by Spark BusinessSM from Capital One® and is the third post in a series of eight.