18 Dec Brands Need to Expand their Markets and Revenue Sources
Revenue diversification is a need that any business has when it comes to strategic planning. Every year, there is one question that rises above all other questions when it comes to planning the next year: How will we increase our revenue next year?
As simple as this question might look at first, it usually has one of the most complex answers in the business world.
How will we increase our revenue next year?
Market expansion is not usually the first idea when companies are looking for an extra source of revenue… Companies are constantly, year after year, exhausting their resources doing 3 main things: Ramping up logistical costs to fulfill all their retail orders, investing thousands of dollars to build their brand in the consumer’s mind, and expanding their retail network to continue to have the best in-store product visibility that will guarantee sales.
If these solutions are working, but we still need to find a new revenue source, why shouldn’t businesses think about expanding their markets? Here are some pros and cons for Market Expansion:
- New untapped revenue source
- World positioning for the brand
- Endless possibilities for market growth
- Opportunity to try new products, niches, and communication
- Possibility to tailor product/brand to what the market needs/want
- Having to go through the importing process with unknown regulations and limitations
- Need to build new network of client relationships
- Unknown culture, positioning a brand from the ground up
- No guarantee of same sales or marketing strategy working for new markets
- Not being attractive to the market
Your products will be available to a whole new set of potential consumers, your brand will be in front of a completely new culture, and there’s no guarantee that what works in one market will work in the next.
Market expansion is a new untapped revenue source for companies
Market expansion is definitely not for every company. However, it should be a no-brainer if you are looking for an extra revenue source, in untapped markets, where you might have a competitive advantage by already understanding how to position your product and how to find the opportunity for market growth.
The next time you think about alternative revenue sources, think about market expansion.