Expanding your small business sometimes means entering new markets and finding new customers. While attracting new customers may seem like starting your business all over, you can use your assets and help from others to get a foot in the door of a new market. Here are some tips to get you started.
Identify An Existing Market
You know your current market. But do you know precisely which new market you want to enter? In order to be profitable in your new market search, you need to find a market that has the potential to help you reach your goals. Try using the industry search tool available at http://www.naics.com/search.htm. This can give you more ideas to narrow your new market search.
Define Your Target Market
As with any new marketing effort, you must have a defined target market. Without a target, you waste money, time, and resources.
What are the characteristics of your intended market customer? For instance, say you currently serve a market for women’s business fashion. If you want to enter a market that serves women’s workout clothing as well, you need to define the qualities of those women who are exercise enthusiasts. What is the age range? Nutrition needs? Demographics, including income and education? Correctly identifying your target market will give you better purpose in finding new customers.
Partner With Other Businesses That Serve Your Intended Market
You don’t have to redefine or re-invent marketing strategies for finding new customers. Why not use the help of another business that already serves that market? Using a joint venture partner gives you many advantages to entering new markets.
Form a joint venture with a business in the market you wish to serve. A joint venture is not a full partnership, but rather a business strategy where you and another business owner join forces to create a better product or service. It could be a merchandising effort where you and your joint venture partner form a package deal. Or perhaps you and a joint venture partner utilize and combine production facilities to form a new product altogether.
Direct Sales Letter
With a defined target customer in your hands, you can use that information to create a direct sales letter. Hire an experienced copywriter with sales letter experience. A sales letter personalized to your target market is much more effective than a post card. Sales letters have been used successfully for decades as a way to introduce new products and businesses. Use yours to get the word out about your products or services to the new market you intend to break into.
Use Referrals
Network with your current clients or customers. Offer a special incentive to bring in customers with your target specs. Your current customers are your best tool to give a positive review and introduce your business to their network of contacts.
The best strategies for penetrating a new market begin with deeply understanding your new audience. Thinking outside the box will help you reach new customers and profits.
