There are many ways to scale, depending on what you need, what you want and why you’re scaling. Our ‘Ways to Scale’ blog series covers five key development areas that will empower you to scale.
In the final article of the series, we look at how to identify and access new markets, along with some of the common barriers identified in the ScaleUp Institute 2017 review for the North East, and suggest how you might overcome them. Enjoy reading - we hope you’ll use this article to turn your scaleup potential into scaleup performance!
Entering new markets
Glocalisation is the buzzword here - distributing your goods globally but adjusted to suit the consumers and users in their local contexts. Expanding into a new market is exciting and can be wonderfully lucrative. However, you’ll also need to consider different rules and regulations, resolve potential language barriers and deal with customs. So what can you do?
What to do
You may want to begin trading in an entirely new marketplace, or start importing or exporting products. Alternatively, you might consider a new business structure such as franchising, working with resellers or entering into a partnership arrangement.
Typical barriers to entering new markets include facing tougher competition and positioning your products or services correctly in an expanded marketplace. Maintaining market responsiveness can be challenging and there can be difficulties associated with importing/exporting goods and managing new suppliers.
How to overcome the barriers
There is a wealth of support available in the North East for SMEs interested in exporting.
The Department for International Trade - North East has been created to help eligible SMEs sell their products and services to overseas markets. They can also support you in building your export skills.
You can access free advice on dealing with suppliers, selecting a market and reaching customers through Open to Export.
Conclusion - Take a leap of knowledge not faith
In conclusion, whichever route to scaling you choose to follow, you need to evaluate your business’s needs for scaling up, assess your own capabilities and limitations, expand your skill set and adopt the management practices and leadership behaviors essential to retaining the top job in a much larger company.