How to Prepare your Mindset to Enter a New Market
Expanding your business to a new market is a great opportunity and an intensive endeavour. Founders, when they eye new markets, need to consider multiple factors and evaluate the best strategy for them.
Previously we introduced how companies can identify if they are ready to expand, but in this article, we will be exploring what to consider and do to prepare your mindset for a market expansion.
Going into a new market with the right mindset is a very important area where founders need to evaluate deeply. Through our support of founders at multiple stages in their growth, we have identified three key mindsets that enable a successful approach to a new market.
First and foremost, it is important to be realistic.
When approaching a new market, there are multiple factors to consider, finances to double check and instincts to follow. However, it is easy to be blinded by the opportunity that some may miss the obvious red flags or hurdles that need to be addressed first. When evaluating if your company is ready for an expansion, keep in mind that you need to be realistic, take a step back, and try and evaluate from a different perspective.
Secondly, you need to be flexible.
New markets usually indicate new teams, new customers, and new partners. But what is often also forgotten is that among all these ‘new’ items, you are also dealing with a new culture and way of working. Time and time again, we have seen startups fail to recognise that they need to adapt to, and learn about, the new culture and market that they are entering. This means recognising your assumptions, and being flexible enough to change and adapt for your business.
Lastly, validate your reasoning.
Approaching a new market requires strategy and deep analysis. Founders should take a step back and look both internally and externally at their business and evaluate if they are ready to expand. Not only do you have to look at your capabilities, your team and financials to validate that your reasoning to expand is solid, but also explore the opportunities and potential of the new market. One item to also look out for is how you will secure your pipeline in the new market. For example, if you have secured customers in the new market organically through reputation, or built a network of potential partners by joining groups or through introductions, you may have strong indicators validating your reasoning. However, if you are expanding due to a new partner or customer generated from a chance meeting which you are unable to replicate, then chances are you need to reevaluate the market.
Questions to ask yourself
- Have you been realistic with your evaluation? Have you considered your current situation from multiple perspectives?
- Why are you approaching a new market, why that market, why now?
- Have you evaluated if this is a market where you can build up capabilities or partner with someone who can support you in that market?
- Are you able to adapt and evolve your product to adapt to the new market? Would evolving the product put a strain on your current time or not?
Interested in joining a dynamic program to support you through your Market Entry needs and collaborate with you to achieve commercial outcomes. Explore one of our market entry programs now.
This article is part of the Understanding Market Expansion Series, stay tuned for more articles and insights.