Answer these questions to help you determine if you should consider growing by expanding to new markets:
What markets am I currently reaching?
What other markets exist for my product/services?
Which potential markets are easiest to reach?
Which potential markets offer the greatest sales and growth opportunities?
Consider which markets would be easiest for you to reach in light of your knowledge, experience, and contacts. A property management company that purchases run-down homes, remodels them, and either sells or rents them carefully analyzed their markets. Recognizing that their skills could be applied to commercial real estate as well, they began purchasing older office buildings, remodeling them, and renting out office space.
Cash flow and profits and/or the ability to finance growth from external sources are usually required to expand to new markets. Advertising and marketing efforts can be costly. However, with the advances in communications, technology, and transportation, many entrepreneurs have successfully broken into previously untapped markets at all levels—from local to global markets.