9. Do Have a Talent Strategy.
When expanding into a new market, you need a talent strategy. This includes (1) an operational understanding: local laws, regulations, tax implications, and salary data for the market; (2) a growth plan: Candidates will want to understand your plans for expansion and what it means for them; (3) a hiring strategy: a plan to determine how you’ll attract, interest, and persuade candidates to join you.
10. Do Get to Know the Area and Its Demographic Well.
It is imperative that you get to know the area you are moving into and the consumer habits you are trying to attract.Â While this may seem obvious, many people forget to do that and move into the wrong areas, and market to the wrong people. Another crucial aspect is to remember that people tend to have pride in their cities, so speak to them as if you are one of them, not coming in from above.
11. Do Understand the Essence of Your Brand.
You can’t just replicate bricks and mortar or color and fontsÂ to make yourself present in a new market. DeeplyÂ understand what makes you who you are, and replicate the culture and mentality through communication, hiring, and repetition. Often test whether or not you’re consistentÂ by asking questions which highlight strengths and weaknesses of your brand compared to your home market.
12. Do Factor in Profitability First.
When 87AM goes into a new market, we look simply at profitability: How long will it take to get us there (under 90 days is required); and what’s the gross potential of the market for our services (minimum 15Â times multiples of servicing the market from an existing office outside of that city).
13. Do Focus on Client Quality Over Quantity.
Entering a new territory is like starting a new school. No matter what your previous reputation, you have to prove yourself all over again and the fastest way to do this is by associating with the right crowd, whatever the right crowd means to you. Focusing on the quality of clients over the quantity at first helps position your brand in a new market and build the right audience by association.
– Jess Levin,Â Carats & Cake
14. Do Listen.
The biggest danger is assuming that what worked in one market will work the same in another. Obviously, you need to have a plan, but you also need to be flexible based on the situation you actually encounter on the ground.
15. Do Hire Locally.
DO make a local hire. YourÂ representative on the ground must be steeped in the “climate”Â of that region — cultural, political, social, etc., for two reasons. TheyÂ mustÂ relate to their job relative to the local environment andÂ feelÂ its pulse —Â especially with a new expansion.Â Also, you don’t want to couple someone’s move with a new job. Those are two life stressors at once, and therefore best to avoid!