There may come a time when you feel like you’ve reached your full business potential in your current market. You’ve targeted all possible customers and achieved everything you set out to achieve. Now, you’re looking for a new challenge to experience further growth.
In that case, breaking into a new market might be an option you’re exploring. After all, if you have offices in the United States, why not have virtual offices based in Melbourne and experience success in Australia? If you’re unsure where to begin, or you’re looking for some helpful tips for a seamless market entry, consider taking the following steps:
Follow Your Clients
If you’re a B2B company, it can be easier than you think to break into a new country and market. You simply need to follow your clients. Use your connections with global customers to connect with potential new ones in other countries, then see if they require your products and services. By leveraging your business relationships, you can build new ones and replicate the same success you’ve had in your country when expanding to another.
Research Various Markets
It’s easy to assume that you’ll always be able to replicate your current business model and enjoy the same level of success in another country. While some countries operate similarly, making expansion easier, all nations have different market leaders and purchasing power, potentially limiting growth opportunities.
For example, some countries are experiencing significant growth and have minimal competition, but their limited purchasing power means you might not experience the profit levels you anticipated. You also have to analyze the market to see if customers are even searching for the solutions you provide. The problems people encounter in one country might differ in another.
You might think that attractive and competitive prices are all it takes to break into a new market, but that’s not always the case. B2B companies must form relationships with consumers, explain what they offer, and develop robust relationships that transform into trust and loyalty.
Remember, you’re entering a new market with a clean slate, and consumers can be wary about switching from brands they trust to brands they’ve never encountered.
Test the Market
A particular market might tick all the right boxes on paper, but it might not pan out in practice. After a thorough market analysis, start the testing phase by making your products or services available in select places for a limited time.
This process is generally more straightforward if you have online products and services such as software or apps. Test the same funnels across multiple countries and collect data for review. Once you have the data, you can make an informed decision about the right markets to explore.
Research Entry Costs
Research entry costs thoroughly to understand which markets deserve more attention than others. Your research should cover local taxes, insurance, storage costs, regulations, and shipping rates. In many situations, it will be far more cost-effective to enter some markets than others. However, some markets may be so lucrative that the benefits more than offset those initial setup costs.
Breaking into a new market is not a fast process, nor is it one you should rush. Research your markets, analyze your potential customers, and consider testing the waters before making a permanent growth decision. The more time and effort you put into research, the more seamless your entry into a new region can be.