Market Entry Due Diligence Requires More than Just Data
In today’s information-driven economy, there is a temptation to think that all you need is raw information. After all, almost all of the information you could need is easily obtainable. Unfortunately, the information may not be reliable or up to date, and more importantly, it rarely provides the whole story.
Effective market entry due diligence requires consultation with market experts – people who live and breathe the market day in and day out. At Wellfleet Strategies, we provide our clients with a broad network of industry professionals:
- Former regulators
- Government insiders
- Financial analysts and journalists
- Academic experts
We build a unique team around each client to make sure they get the very best guidance when entering a new market.
Asking the Right Questions
Successful market entry requires the right people with the right information. However, it also requires that you ask the right questions:
- Who are your customers? Do they have unmet needs?
- Who are your competitors? What do you offer that they do not? How much of a threat do they pose to your success?
- Is the market as attractive as it appears to be? Which segments of the market are most attractive? Can you service those segments?
- How is the market trending? Are the prevailing trends creating or eliminating opportunities?
- What can you realistically expect in terms of profit and growth?
- Will you have supply issues or other logistical challenges? What about your competitors?
In addition to these specific questions, we also spend considerable time working with you to ensure this market entry is compatible with your company’s overall strategy and vision. We can also assess whether your business has the tools and the people to make your entry a success.
Identifying Potential Lender and Investor Concerns
Your market entry may require you to seek out new capital or obtain financing. We can help you identify what may give potential lenders or investors pause, and address those issues in advance. We can also help you prepare for their review so that you can respond to their questions in a clear and confident manner. Perhaps more importantly, we have relationships with many lenders and investors, so we can help you make the connections you need to move forward.