Several recent conversations with new entrepreneurs as well as veteran business owners have been on the topic of entering a new market or new customer segment. In each instance, a key concern was a strategy for mitigating risk of entry. While each person recognized there is always some degree the risk, they wanted to explore how to minimize this risk.
We discussed the importance of having clarity based on data regarding customer needs and wants and the degree of competition. We also mentioned the importance of conducting research to validate the market, estimating the cost of entry, defining and establishing a unique and compelling value proposition, and developing a go-to-market strategy and plan.