Ask These 4 Questions Before Expanding Into New Markets Business expansion is a big step with many risks and rewards, so before making the leap, answer the following questions.
Opinions expressed by Entrepreneur contributors are their own.
If you're a venture-backed company, you're probably being told to get profitable and to do it quickly.
Although it might sound counterintuitive, the path to profitability for many business leaders could lie in expansion. Even during challenging economic times — with the consumer price index increasing 6.5% at the end of 2022 from the prior year and interest rates predicted to continue to rise in 2023 — entrepreneurs continue to consider expansions into new markets and verticals. But how do you know if it's the right time to expand?
Expansion is always risky for an entrepreneur. The fundamentals matter more than ever, especially with the current economic status. It's best to set yourself up for success in a supportive, structured way that doesn't work against your core efforts.