Your Guide to Entering a New Industry
Entering a new industry with your business is never too easy. You finally see some success in your dream business and think it is time to expand the doors and head towards a new industry. Regardless of whether you are looking to grow your business in a new sector, collaborate with a brand in that market, or start a new business venture in a new industry, you should know that entering new markets and industries is no mean feat.
You won’t be welcomed with open arms and will sooner or later run into competition and a host of other problems that you probably haven’t prepared for. Competitive advantage matters when you’re stepping into new industries, and businesses can develop that by acquiring the what, where, and how of the industry they plan to go into.
In this article, we provide a complete guide on what you should do to enter a new industry. Our focus is compiled with insights from industry experts and renowned entrepreneurs so that you can count on the validity of the tips.
Identify Clear Goals
Identify and set clear goals on what you wish to achieve and accomplish by entering a new industry or a different market. This should preferably include a definite level of transactions you plan to achieve. Your objectives and goals should determine the rest of the steps you follow when stepping into a new industry, including the business plan you wish to stick to.
Goals should be a substantial part of your strategy and should be outlined before you step into the new industry. However, be SMART with how you set your goals. Follow the SMART acronym and make sure your goals are specific, measurable, achievable, relevant, and time-specific.
Talk to Industry Leaders, Advisors, and Potential Customers
There is no better way to discover the peculiarities of an industry than getting in touch with business leaders and identifying how they go about their business. Veteran entrepreneurs in the industry would have more experience than anyone else and will be open to helping you.
You can set up a meeting with them to ask questions that come to your mind and find out what motivated them to achieve the goals they had set for themselves. It would help if you also looked to visit advisors related to the industry. They could guide you better towards industry potential and tell you whether now is an excellent time to enter it.
Finally, you can get in touch with current customers in the industry to determine the pain points that concern them and the steps they would like to take to eradicate these pain points. Finding out customers’ concerns within the industry can help you solidify your offerings and enhance your overall potential.
Partner with an Industry Leader
Sometimes the best way to step into new industries is to understand your ignorance and realize that you need to partner with an industry leader. You can adopt the ‘don’t buy or manufacture it, when you can sell it’ mentality to succeed in new industries without prior knowledge of how the industry works.
Partnering with an industry leader will open up new avenues for you within the industry and help you gain access to the quality products they have on offer. Bite the bullet, admit your ignorance and be ready to ask for advice and support where you need it. People usually will allow you to sell their products and services and might even give you some industry advice at the moment.
Offer Free or Discounted Products/Services to Start With
One of the best ways to break into a new industry is to offer your products or services for free or at a discounted rate to a potential client. Make sure that you get feedback from the client and make notes of it for the future. This allows you to work with clients that know the industry and will be willing to guide you with the information you need.
The client will get excellent work at a discounted rate and will even spread your name around. You, in return, will get some valuable industry knowledge and be able to translate it into more clients and better performance.
Understand Future Challenges
Every new industry comes with its own set of challenges, and these challenges can be mitigated by thoroughly understanding them. As your business spreads across new markets and grows, you will see several unique challenges.
Entering new industries and new markets will pit you up against high global competitors. Understand the competitive environment of the industry you’re stepping into so that you know the dynamics beforehand.
Additionally, you may face issues and challenges with logistics. Do not let these challenges trouble you because if you’ve partnered with an industry leader, they will take you through them.
Make a List of Questions and Then Find Answers
All renowned entrepreneurs and successful business owners were known for their curiosity and eagerness to find answers to their questions. Whenever you head into a new industry, make sure that you note down every question that comes into your mind. Note that question down somewhere and make sure you find answers to it.
This strategy will help you see and analyze every aspect of the industry without leaving any confusion in your mind. Every bit of research you put into your new industry will eventually pay its due dividends.
Entering a new industry and navigating through the experience can be challenging. We hope our guide above helps you and improves your experience in the new market/industry.