Key Strategies to Consider When Expanding into New Markets
Nonprofits usually start in one city, focused on delivering services to those in need within their local communities. As the organization grows, expansion into nearby markets can help further the organization’s mission, but this is no easy feat. While neighboring cities may have similar landscapes, there could be vast differences in culture, capital, and infrastructure that can cause roadblocks in an organization’s plan for expansion.
SVP Austin recently worked with Lone Star Justice Alliance (LSJA) on this exact challenge. LSJA runs a workforce program that focuses on connecting justice-impacted individuals with employers by providing them training in a high-demand career where they are paid for both classroom and job site time – in an “earn and learn” model. After seeing great success in the Dallas-Fort Worth area, they decided to expand to Austin, with the intent of creating a model that could be replicated across Texas. A team of SVP Partners with deep experience in workforce development, human resources, finance, and program design came together to collaborate with the Chief Mission Officer of LSJA to identify target industries and prospective employers, design and market test three program offerings, create a pitch deck, facilitate employer interviews, and deliver key findings and recommendations.
Through our work with them, we identified 5 key strategies that organizations should consider when expanding into new markets:
1. Build Connections with Business Leaders
Networking is just as useful for market research as it is for establishing connections with key players. To understand the local landscape, attend industry conferences, join relevant professional groups, and connect with local business leaders. Building your network can introduce you to those who are decision makers and can champion and clear a path for growth.
2. Find Related Resources
Oftentimes, an organization's sector in the market has existing resources or boards that can provide guidance, resources, and connections. In our work with LSJA, we found that working with Workforce Development Boards like Workforce Solutions Capital Area are a great place to not only receive funding, but co-create programs as well. Seek out existing boards or foundations in your sector and work to build partnerships and collaborate on initiatives.
3. Create a Compelling ROI Story
For organizations working with businesses, consider spending time brainstorming around the story of your product and what value it can bring directly to the company itself. In our work with LSJA, we discovered that employers have a clear idea of the cost of employee turnover. Turnover is both a pain-point and quantifiable. After identifying the key value your program brings to a customer, putting a value on that metric can provide an easy incentive for early adoption. In tandem with developing a ROI story, make sure to think about how you’ll measure success with this metric as a way to prove the value of your product or service.
4. Identify Adaptations for Existing Products
One size does not fit all, especially when it comes to expanding to new cities. Analyze how your existing product or service aligns with the local culture, regulations, and consumer behavior. Determine the necessary adaptations to make your offering more appealing and relevant. This might involve tweaking features, adjusting pricing strategies, or incorporating region-specific elements to enhance market acceptance. When developing general practices for expanding in your organization, make sure to implement strategies that can transcend market sectors and be applied to any market.
5. Become Known as a Local Thought Leader
You and your organization have specialized knowledge that the world needs. Your experience and stories are what can create more goodness in the world. Learn how to package your knowledge. Seek out speaking opportunities in your field, focus on creating curated content for your potential customers, and host events or webinars to promote collaboration and learning with your organization. Then consider how these could be turned into earned revenue streams through online courses or in-person conferences.
Are you interested in learning more about Lone Star Justice Alliance and their initiatives in Austin? Please join us and LSJA on December 13th for our next SVP Gathers, where you’ll get to see a presentation on their work and provide feedback to help them expand their initiatives in Austin.
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