There are many factors to consider when expanding into new markets but the two primary thought points would be determining IF you can expand into a new market and the second would be the actual process of expanding. Expanding into a new market is predicated on your marketing capabilities, production capacity and most importantly, your ability to deliver. Those important factors help determine the”IF”. This is a decision that cannot be unilateral and must include department heads and management.
It’s important to consider the cost of expanding. That could include everything from physical space, manpower, marketing, and sales ability. The cost/investment must have an ROI that is worthy of the work and effort involved. This is an important point to make. I have worked with many companies that felt like they were leaving a lot of revenue on the table because they were missing specific markets. In many cases, once we crunched the numbers and looked at the timeline involved we determined that the ROI was not all that impressive and with a few simple tweaks, we were able to enhance their existing offering and the ROI was quadrupled.
I have also worked with companies where the due diligence proved that the expansion would be a fruitful and lucrative move. Do your due diligence to ensure the outcome you seek.
The bottom line and to answer the question of can I expand into a new market is yes. But it’s important to research the process and outcome in a way that reveals the ROI both short term and long term and make that decision based on the numbers and not on emotion.