How to Reach New Markets Want to bend your business in a better direction? Try a new market.

Imagine you're the owner of a 7-year-old business that markets security camera systems to small retail stores. During a meeting with your advisors and senior staff, you decide it's time to expand. But how? You could market more expensive items to existing customers, or widen your service area by hiring more employees and adding another location. But it's possible your customers wouldn't be able to afford the pricey upgrades, and adding a new office would just be too costly. However, there's one solution that can significantly propel your company forward without any exhorbitant expenses: adapting your product line to a niche market.

Going after a different niche is a tried-and-true method of expanding a business. Although it's not risk-free, it can be safely accomplished if you follow these four important steps:

1. Retool your product or service. Evaluate ways to modify your product or service to meet the needs of a new target audience. Start without any preconceived notions about whom you'll market to; just focus on the product and service variations your company might offer. For example, when consulting with Marada Industries Inc., an auto parts manufacturer in Westminister, Maryland, that was exploring expansion opportunities, I held idea-generating sessions with plant employees. We realized the company could use its equipment and expertise to make everything from bed frames to hospital gurneys.