Several fundamental principles apply to effectively expanding a business. Self-made entrepreneur Daniyar Zhanbekov discusses each principle to help others achieve their business expansion plans and avoid common pitfalls.
Do Your Homework: Understand Market Size, Competitive Landscape
Before undertaking a business expansion, leaders must have a strong understanding of their industry’s market size and competition. Perform in-depth research on your competitors, the market share each represents, how they distinguish themselves in the market, their strengths and weaknesses, targeted demographics, pricing structure, marketing and advertising strategies, and distribution channels. Assess industry trends, the common challenges consumers or businesses face that may have not been met, and how you can address these challenges.
Zhanbekov also suggests visiting each competitor’s website and social media platforms (Facebook, X, LinkedIn, Instagram, TikTok, etc.). You’ll gain insight into how they position their products or services and reach their audience and where the immediate, lowest-hanging fruits are where you can compete.
You may find a smaller market in one country ripe for expansion into other countries where the market is larger, competition is less intense, or you will have a clear competitive advantage. You may also find that the market in adjacent industries is open to being disrupted by new technology, which will provide you with an opportunity for growth.
Disruption has occurred in numerous markets over the last decade or so. The insurance industry, for example, was disrupted by insurtechs that deliver products in innovative ways. The DVD rental market saw a massive disruption from streaming services such as Netflix and others. The highly competitive shapewear market saw an explosion of new products, with the popular brand Skims growing to become a billion-dollar company by catering to a broader and more inclusive target audience.
In performing in-depth research supported by a realistic assessment of your competition, you can uncover expansion opportunities and establish relevant priorities for the team.
Choose the Right Team with Local Market Knowledge
Once you understand the competitive landscape and choose an appropriate expansion strategy, the next step is to put together an experienced team with local market and industry knowledge. You want a team to help you enter the market and execute your strategy. Motivating your team and setting clear performance expectations are critical to accomplishing your goals. Therefore, ensure you allocate appropriate and adequate resources to perform the tasks that accompany your expansion strategy.
Identify and Establish Key Local Strategic Partnerships
Daniyar Zhanbekov explains it’s also wise to seek and establish key local strategic partnerships to help with your expansion plans when entering a new market. With time constraints amid a competitive landscape, the right strong partnerships will assist you with expediting market share gains. Speed to market increases your opportunity to best your competitors and demonstrate that you are at the forefront of innovation and meeting B2C or B2B needs.
Timing is everything, as is a motivated team with appropriate resources and good partnerships, local experience and market knowledge, and an unwavering focus to help guarantee your expanded footprint in the market.
About Daniyar Zhanbekov
Mr. Zhanbekov owns and is currently the sole shareholder of Basel Insurance Company in Kazakhstan. Since its formation in 2021, Basel Insurance Company has demonstrated high capital adequacy ratios compared to the growth of insurance premiums. It has a balanced investment policy and continues to expand and diversify its business.
