Hack To Expand Into A New Market
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Summary
- If you're uncertain about which market to expand into, consider testing several options first.
- Avoid spending $250,000 on market studies and location builds upfront.
- Use $1,000 to run your most successful promotion from your current market across five potential new markets.
- Evaluate the lead cost in each of these markets.
- Identify the market with the lowest lead cost and open there.
- Spending $5,000 to $10,000 on this experiment can save money and guide better expansion decisions.
Video
How To Take Action
I would suggest, if you're an entrepreneur looking to expand your business, to start by identifying a few potential markets you're interested in. Instead of spending a large sum of money on in-depth studies or building locations, try a more economical approach.
A good way of doing this is by taking $1,000 and running the most successful promotion from your current market across five potential new markets. This means using the same advertising strategies or promotional campaigns that have worked well for you before. It’s a quick way to test the waters.
Next, evaluate the lead costs from these campaigns. You’ll want to measure which market gives you the best bang for your buck, meaning the market where it's cheapest to acquire new leads.
Once you've identified the market with the lowest lead cost, consider opening your next location there. This process might cost between $5,000 to $10,000, but it's a small investment compared to the insights you gain. It's a way to make data-driven decisions without breaking the bank.
This approach not only saves time and money but also reduces the risk of venturing into a new market without enough information. Use these insights to focus your efforts where they're likely to have the highest impact.
