What If the Next Recession Didn’t Keep You Up at Night?
Market expansion could be your company’s smartest insurance policy.
Buyers are starting to question their potential targets more than ever due to overreliance on a single market. Varied markets mean diversification, which, done properly, generates higher returns at lower risk once executed.
Market expansion could be your company’s smartest insurance policy. Imagine if…
🇩🇪 You had a profitable business in Germany while the U.S. economy slipped into recession
💸 You earned more from the customers you already have.
🌍 You sold your existing product to a brand-new market.
🧠 You used your expertise to break into an entirely new sector.
How much better would you sleep?
How much more valuable would your company be?
New markets typically take one of four forms:
Geographic expansion - serving customers and clients in a new location. This is how restaurant chains scale.
New application of existing products - you can sell your existing products or new products with light modification in new markets. Microsoft sells a PC with a stripped-down version of Windows as its operating system and calls it an Xbox.
Sell a somewhat related product or service to your same customers (wallet share). U.S. accounting firms that are offering legal services are an example of this. Accounting firms have also been trying to do this by offering personal financial advisory and business consulting services, with very mixed success.
Entirely new products or services for new customers using hard-earned in-house expertise - Amazon really started taking off when it offered its cloud services. They applied the knowledge they gained from scaling their e-commerce platform themselves to create an entirely new offering.
Most companies likely only have the resources to do one of these things. Each option requires study, preparation, capital, and, most importantly, the assumption of risk. Developing new markets may take more time than you think and more money. Your first couple of tries may not succeed. That's why most companies never attempt market diversification. However, the benefits are a more resilient company and a more valuable one.
If you're thinking about how to increase the value of your company through a smarter strategy, such as entering new markets, let’s talk. We can guide you through this transformation.