Expanding your business demands a clear, strategic plan that identifies where your growth opportunities lie. Central to this strategy is determining how to reach new customers and tap into untapped markets.

This involves understanding your existing customer base, researching potential market opportunities, and crafting tailored approaches to meet the needs of these new audiences. By taking the time to analyze trends, leverage data, and create a targeted roadmap, you can position your business for sustainable growth and long-term success.

 

Start by understanding your current customers

Before expanding, take a deep dive into the customers who are already buying from you. Use your CRM or accounting software to extract data that answers questions like:

• Who are your top 20% of customers by revenue or margin?
• Which segments have the highest repeat purchase rate?
• What industries, regions, or buyer personas convert most easily?

If you’re a regional B2B service provider and you notice that mid-sized manufacturers in two zip codes make up a growing share of sales, that’s a signal to explore similar companies in neighboring regions.

Once you’ve defined these high-value customer profiles, build marketing personas which are fictional but data-based representations of your best customers. Include their demographics, business size, industry, purchase behavior, and pain points. These personas help your sales, marketing, and product teams align their efforts.

 

Find new customers in existing markets

Start with an understanding the customers you already have. By profiling your current customer base, you can gain valuable insights into their demographics, preferences, and buying behaviors. This deeper understanding allows you to re-establish and refine your target consumer profile, so that you’re aligned with the needs and desires of your most valuable buyers. Once you have a clear picture of your audience, the next step is exploring different distribution channels that can extend your reach.

 

Expand your distribution channels

A high-return way to grow is to reach new customers through new channels, not necessarily new offerings. Think:

• Direct to consumer (DTC) with your own e-commerce site or online order portal if you previously sold only through distributors.
• Sell through brick-and-mortar partners or larger online marketplaces (e.g., Amazon, Faire, or Wayfair).
• Package your business model and allow others to open new locations under your brand with a franchise or licensing model
• Partner with non-competing companies to bundle services, co-market, or cross-sell.

When you diversify how you reach your audience, you increase the chances of expanding your customer base without needing to venture into completely new markets. This approach leverages your existing market while maximizing the potential of new opportunities.

 

Open new outlets

Expanding into new geographical locations can be a strategic way to open new outlets and reach more customers. It’s important to assess where individuals who match your target market live and work. By understanding these key demographics, you can identify areas with high potential for growth.

Once you've pinpointed potential locations, the next step is to research consumer demand for your products or services in these areas. If the demand is substantial, you can then determine the best approach to serving those customers. Several options for expanding your business might include:

• Opening a physical location such as a new storefront or office that directly serves customers in a specific area.
• If your business model is adaptable, franchising can help you expand rapidly without taking on all the operational risks and costs.
• Partnering with local distributors or retailers, as this can help you test new markets without committing to a full-scale investment in a physical presence.

By evaluating these options, you can create a strategy for tapping into new regions that aligns with your business goals and resources.

 

Vertical or horizontal integration

If you’re a wholesaler, consider adding a retail outlet. If you’re a retailer, it might make sense to add a wholesale channel.

Look for any competitors or complementary businesses who are looking to sell. You might be able to buy them out to extend your reach and customer base.

 

Sell online

If you haven’t invested in digital expansion, now’s the time. Online channels make it possible to reach customers nationally or even globally without opening new offices.

Options include:

• Launching an e-commerce storefront using platforms like Shopify, BigCommerce, or WooCommerce
• Selling through major marketplaces like Amazon Business, Etsy (for B2C goods), or Faire (for wholesale buyers).
• Developing a mobile app if you offer on-demand services or subscription-based products
• Enhancing your digital marketing stack, including paid ads, SEO, LinkedIn campaigns, and lead-gen tools

Your digital brand should speak directly to the customer personas you’ve built, focusing on value, ease, and trust.

 

Revisit your marketing strategy

Examine what you’re doing to attract new customers to your business. Key strategies include:

• Get your brand out there by attending conferences, networking, and surveying your loyal customers to gather their opinions.
• Reconnecting with your online efforts, as it’s essential to have a presence on any relevant websites and social networks. Evaluate and optimize your existing social media platforms, consider adding a new platform that your ideal customers use or will connect you with a new market, or try out new methods to attract more followers.
• Ask for referrals. Your customers probably know other people who could benefit from your products and services. Setting up a formal referral program may be beneficial. However, many customers are more than willing to refer your business if you simply ask.

If your marketing strategy doesn’t include any of the above, now is the time to rethink it.

 

Finding new markets

Sometimes, real growth requires stepping into new customer verticals, buyer types, or geographic markets. But do it with a plan.

Options include:

• Expanding into overseas markets. Exporting can be rewarding but requires thorough research. Understand the regulations, tariffs, and risks in your target country before proceeding.
• Selling to government, education, or nonprofit sectors, which often have different purchasing cycles and requirements
• Expanding from B2C into B2B (or vice versa) and adjust your pricing, packaging, and messaging accordingly.

You may need to adjust your offerings and marketing to cater to different pain points and priorities in these markets.

 

Next steps

• Understand your current customer base by creating detailed marketing personas.
• Consider diversifying how you reach your customers, such as through direct sales, retail outlets, or wholesale partnerships, to expand your presence in existing markets.
• Look into opening new outlets or expanding into new geographical areas where demand for your products or services exists. This could involve opening a physical location, franchising, or partnering with local businesses.
• Take advantage of digital platforms, including websites, apps, and e-commerce stores, to broaden your reach and tap into a growing online market.

Finding new customers and markets could open the door to business growth, but it requires foresight and action. Get started today.