E D M O N T O N J O U R NA L e d m o n t o n j o u r n a l . c o m W E D N E s DAy, F E b R UA R y 2 5 , 2 0 1 5 b7bUsiNEss

“I think coming in to any established business as a leader or as an entrepreneur, you need to really take some time to get to know it … We spent a lot of time trying to learn what the market looked like today and where the gaps were that we could grow what we already did to be better at it.”— Sean Rayner, owner of Vets Group — vetsgroup.com

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CAPITAL QUESTION:

How do you decide when to expand into new markets?Capital Ideas members share what factors they consider when expanding

Karolina Zitnansky, image consultant and owner of Style & Chic (styleandchic.ca), says it’s all about timing. “Whenever I feel that my new clientele will benefit from my services while my business will be growing, I am always open to expanding into new markets. In the image business, timing is directly related to the preparation process, as virtually anybody can use colour and style advice at any stage of their life.”

“As an online marketing specialist, I also help clients with social media and email marketing, as well as offer web design services. I would add further services if I had sufficiently mastered one area and was ready to move onto the next. The demand from your clients is a great indicator that you should add service offerings. I love to teach, so offering classes and seminars was a natural way for me to expand.”— Katie Pearse, online marketing specialist and owner of Katie Pearse — katiepearse.com

“I like to leverage my network to find out if they are involved in the new location, how they find the climate, and if they see a need for my services there. Market research is also completed along with some toe-dipping into the pool to see what the water is like.”— Kevin MacDonald, business consultant at L6S Business Consulting Inc. — L6SBC.ca

“Once you’ve tested out your product and service and finetuned the delivery, quality, pricing and service, it’s best to seek out other markets so you can diversify, grow, reduce your risk and deter competition (i.e. provide increased barriers to entry). However, ensuring you have it near right is important so you can give yourself a higher chance of success. Also, in new markets, reach out to experts who have been there and done that — it will save you from learning about the differences.”— Ashif Mawji, CEO of NPO Zero — npozero.com

“Expansion? Only when the data points to yes. Gut calls, market observations, anecdotal evidence and friends speaking highly should simply encourage us to look at the data. Things like if there’s a need, the market size, growth potential, entrench competition, logistical support, cost of labour, cultural complexity and so forth. A lot of free data exists to help and not as an afterthought.”— Darryl Moore, vice-president of marketing and communication at Executrade — executrade.com

“I base my decision on what the economy is doing. If there is an industry that is booming in Alberta I take a good look at their business model and see if my services can be of benefit to them. If my services could be used in their market at this particular time, I introduce myself to let them know what we are all about, which is ultimately making them stand out from the crowd.”— Crystal Puim, owner of Crystal.Puim.Photography — crystalphotos.ca

“Sometimes an opportunity presents itself that you can’t pass up. For example, a competitor may be for sale, and acquiring your competitor might give you that access to an additional market, product, service, etc. that would take years to build on your own. Given changing demographics and economic fundamentals, there may be tremendous opportunity for business owners looking to grow by acquisition.”— Hussein Poonjani, managing director at Grant Thornton Corporate Finance Inc. — grantthornton.ca

“Deciding when to expand into new markets is directly correlated to the interests, needs and requests from current or potential clients. Working in the health-care field, trends present themselves during times of restructuring and changes to the public health system and government programs. When public programs for young adults were cut back in 2014, immediately we began seeing interest for younger adults to attend our program. Hence, we expanded and stepped up to include those individuals! Similarly when clients or families from long-term care or assisted living facilities realize their loved ones require more services than can be provided in institutional settings, we expanded to include a driving service to accommodate frail elderly clients who needed an alternative to public systems or family support for transportation. Our in-home companion and therapy-on-wheels service started and is flourishing based on the same premise of supply meeting demand.”— Keltie Brisson, co-owner and recreation therapist at Rehab and Retreat — rehabandretreat.com

“We expanded into Turkey when a group of Turkish fans contacted us. We did some quick research on the potential market space and worked with the Turkish fans to get the game translated and reviewed by the local press. By enabling the fans, we became one of the first major PC games in Turkey.”— Trent Oster, creative director at Beamdog — beamdog.com

“Expansion and rapid growth can cripple a company if not managed correctly. Prior to expanding into a new market, it is imperative to determine what the company’s profitability will be on this new venture, but you must also consider the strain the expansion may put on the company’s existing assets, especially working capital and cash flow.”— Debbie Engel, owner of Debbie Engel Professional Corp. — depc.ca

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These answers are in response to a question posed by Wellington Holbrook, executive vice-president of ATB Business. Here’s his take:“I think the key word is ‘when’ in this question. Over the years, I have had the opportunity to help and support thousands of business owners make these types of decisions, but too often, the decision to expand into new markets is based out of necessity instead of the strategic opportunity to grow one’s business. Perhaps the local market becomes constrained or under pressure, or existing customers are threatening to leave. Challenges of this nature often force decisions to seek out new markets and thus new customers. Truth is, under these scenarios it is usually not a matter of choice — sometimes it is about survival. Alternatively, those entrepreneurs that choose to strategically exploit the ‘when’ by proactively exploring opportunities before it becomes a necessity have the advantage of making decisions based on their choice and the pursuit of superior returns. This usually has a more positive outcome and something that I love to see — more successful entrepreneurs.”

When it comes to starting your own business, it might seem wise to keep your day job until it reach-es a certain point. But it’s hard to know whether that’s a good approach or if you should fully commit from the start. That’s why Jim Ewing, co-founder of Pro-Vision Solutions, wants to know:

How would you recommend ‘easing one’s way’ into entrepreneurship?

You can answer the question in two ways:• Open today’s Capital Ideas email if you’re a member, or• Visit capitalideasedmonton.comWe’ll publish the best answers, along with your busi-

ness name and website address, on March 4. Jim is speaking March 4 at the Morinville and

District Chamber of Commerce luncheon. Call 780-939-9462 or email assistant@morinville-chamber.com for tickets, and connect with Jim at ca.linkedin.com/in/JimEwingProVision.

COMMUNITY QUESTION:

How would you recommend ‘easing one’s way’ into entrepreneurship?

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