Question 2: Conservatively speaking, how much market share can we take and what’s that worth to our company in terms of finance and other factors?
This is the second post of our market assessment series that explores the questions a company must ask when analyzing a new market. In the first post, we talked about the importance of knowing a market’s current and potential size.
Moving on, we’ll now look into the importance of ascertaining how much share a company can take in a new market in which it is planning to expand.
Question 1: What is the market’s current size? And what is its potential size? Will the market expand or contract, and why?
This is the first of an 8-part series focusing on the questions a business should ask when assessing a new market.
The ability to carefully estimate the market size is crucial to successfully entering a new market. Too many business owners rush into a new market with the assumption that everyone will use their services or buy their products.
Entering a new market is a crucial step. It’s true for multi-billion dollar conglomerates, and its also true for service-based businesses with revenues between $1M and $50M.
Yet, quite a lot of companies are unable to perform a comprehensive analysis of the market they’re thinking of entering. From the potential size of the market to the behaviors and strategies needed to grow in that market, there’s a lot to cover on assessing new market.
Whether it is through the impact of social media or the increasing efficacy of crowdfunding, the power of collaboration is evident. Smart entrepreneurs and business owners are well aware of the advantages of collaboration, especially for expanding their businesses.