Although some companies can successfully serve a niche market for years, others will need to explore new markets, customers, products or competencies to continue their growth, according to Karl Stark and Bill Stewart, who recently reported on the topic for Inc.com.
“Deciding whether to expand via any of these avenues requires a clear understanding of your customers’ needs and the dynamics of the market you wish to enter,” Stark and Stewart wrote. “But leaving your comfort zone can often lead to accelerated growth for your business.”
Stark and Stewart shared these four areas in which your business can expand.
New Geographies. “Entering a new part of the country or the globe requires in-depth knowledge around market dynamics in the new territory,” Stark and Stewart wrote. “This includes information about competitors, potential customers, projected market growth, the regulatory environment, and political factors–among others.”
New Products or Services. “Diversifying your portfolio of products and services spreads risk across the business instead of concentrating it on one or two core offerings,” Stark and Stewart noted.
New Customer Groups. “Similar to diversifying a product portfolio, businesses can use their core competencies to expand to new customer segments,” the writers said.
New Competencies. “Solving new problems for existing customers can lead to up-selling and cross-selling opportunities, but it often requires new skills and expertise,” Stark and Stewart wrote.
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