How To Avoid Common Market Entry Mishaps

Photo of author at SelectUSA Alberta event discussing cross-border business opportunities.

Companies are often leery to do business in new markets. We’ve probably all heard the cautionary tale of the company who tried to expand into new markets, only to be met with stranded assets, perpetual talent turnover, unexpected costs, supply chain disruptions, or other such disasters.

There certainly are risks associated with expanding into new markets, but there can also be great benefits. Connecting with new markets can help with diversification; accessing new talent and technology; enhancing competitiveness and sustainability; and developing new partnerships.

And yet, I’ve seen companies spend a lot of time and resources to try to enter new markets, but fail to get results. So how can you avoid these pitfalls? The question I get asked most often is “what are the common mistakes you see?” So let’s start there.

Picking the wrong markets

Everyone gravitates toward the biggest markets first. It’s natural. You should go where the most customers are, right? Not necessarily. There may be a lot of customers there, but are they your customers? Also, if all your competitors are there, and have been established there for some time, it’ll be harder for you to break into that market. Think of the small fish, big pond allegory.