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CAPITAL IDEAS UPCOMING MAR. 3: WESTERN BUSINESS OUTLOOK: CALGARY A session featuring presentations from Conference Board of Canada’s chief economist Glen Hodgson, deputy chief economist Pedro Antunes and more ■ When: 7:30 a.m. to 12 p.m. ■ Where: Fairmont Palliser Hotel (133 9th Ave. SE) ■ Admission: $295. Register at conferenceboard.ca
C A P I TA L Q U E S T I O N
HOW DO YOU DECIDE WHEN TO EXPAND INTO NEW MARKETS? Capital Ideas members share what factors they consider when expanding “We look for three things when expanding into new markets: Availability of skilled people in the area; a strong customer base and referrals that will provide us with a good foundation for growth; and strategic alignment to the new market so that we feel we can bring a strong competitive offering to the area.” Shawn Freeman, president of TWT Group, twtgroup.ca
MAR. 5: SOUL OF THE CITY A candid conversation on the role business and citizens can play in solving poverty. ■ When: 3:30 p.m. to 6 p.m. ■ Where: Venue 1008 (1008 14th St. SE) ■ Admission: $20. Register at
“We recently received a tremendous amount of demand for the TLink GPS golf watch in markets such as Australia and South Africa after attending the Orlando PGA Golf Show in January. While it is extremely tempting to simply go where the demand is and start shipping devices everywhere possible, we had to take a step back and evaluate the reality of the situation ... We had to consider how we would handle certain factors, like customer service, distribution and logistics in a market that we had not explored yet … When you are a startup, you usually only get one shot to nail a new market, so you have to make sure you enter it when the time is right, not prematurely.”
calgaryeconomicdevelopment.com
MAR. 17: BIZCONNECT A monthly event hosted by The Business Link to network with fellow entrepreneurs and professionals ■ When: 2 p.m. to 4 p.m. ■ Where: MNP LLP, MNP Training Room (640 5th Ave. SW) ■ Admission: Free. Register at meetup.com/ Business-Link-Calgary For more great events, visit capitalideascalgary.com/ calgaryevents.
COMMUNITY QUESTION
How do you diversify where your business comes from in times of uncertainty?
Stefan Radeta, co-founder and CTO of TLink Golf, golftlink.com
Kelly Doody, founder of Daily Ink Media & PR (dailyink.ca), says she looks for opportunities and acts fast. “When what I’m providing for a client solves an initial pain point, but doesn’t necessarily complete the loop or set them up for long-term success, I see a window. Usually it’s an opportunity to offer a new program, service or product offering to not only that client, but many others. Then it’s a matter of getting there in the fastest, most effective, innovative and intelligent way possible.” PHOTO BY CHRIS DOWSETT
“There are many factors we consider when expanding into a new market. First and foremost, do we have the ability within our management team to handle the expansion? Who are our direct and indirect competitors, and how much market share do they currently have? Is there room in the market for a similar business? In a retail business like ours, the location of the store is extremely important. We may consider one city to be our primary choice, but settle on a secondary city choice based on the availability of real estate.” Carolyne McIntyre Jackson, co-founder of Crave Cupcakes, cravecupcakes.ca
“Business owners always need to pay attention to growth. If you are constantly watching the market, asking questions and staying in touch with your customers, you will be able to spot new opportunities and take advantage of them before others do. Consider the growth rate of your market, trends or gaps, key strategic drivers of future growth, whether you have a competitive advantage, and if can you afford to enter a new market.” Nevine Booth, founder and president of OnPoint Research Group Inc.
“It’s important to be flexible enough to recognize and capitalize on new opportunities when they appear, not based on a formula or timeline. Business markets are much less defined by geography or business type than they have ever been; so many statistics don’t apply. Business opportunities will present themselves naturally when you are listening to your customers … The timing for when you expand into new verticals is decided by the market opportunities that you open yourself up to.” Given the uncertainty in the Calgary market, it’s wise to tap into other sources of business, whether it’s in external markets or with existing clients. That’s why Michael Tighe, president of Solid Site (asolidsite.com), is curious to hear from you: How do you diversify where your business comes from in times of uncertainty? You can answer the question in two ways: Open today’s Capital Ideas email if you’re a member or visit capitalideascalgary.com. We’ll publish the best answers, along with your business name and website address, on March 5.
FINANCIAL POST
CA LG A RY H E R A L D
Nancy Seeger, CEO of Seeger Consulting Inc., seegerconsultinginc.com
“When I am comfortable that my business model works and adds value, and when an opportunity presents itself.” Ave Peetri, founder of Coaching by Ave Peetri Inc., confidentmarketing.com
“I decide to expand into markets when clients bring me a new idea ... Another way we get into new markets is from information passed on to us from various trades publications … Our goal is to serve our clients’ needs, and we’re known for opening markets for the transportation industry.”
Ralph Meyer, founder and president of RMMT Enterprises, rmmt.ca
“We are currently expanding into Edmonton, and it has taken us a lot of time to plan and feel ready. The worst thing is to expand when you are still figuring things out. Growth, especially those of the geographic nature, should be about emulating a successful business model. If you don’t have the kinks worked out locally, they will only be compounded in another location. Once you have your business running smoothly, it’s time to copy it, scale it, and grow.” Danny Hao, president of Stone Source, stonesourceintl.com
“When considering expansions into new markets, it’s crucial to investigate if the area of expansion fits with our company vision and is something we are passionate about, and whether our business handle the expansion. Answering these questions will indicate the feasibility of an expansion.” Sara Dasko, CEO of Free Mind, freemindls.com
“Let the market dictate which new products or services you should add. We started with cheques, and over the years have added everything from business cards and postcards, to envelopes. Ask, listen and find a great way to offer additional value to your client base, all while keeping within your areas of expertise.” John Kittell, owner of Cheque Print, chequeprint.ca
“We just made the decision to expand into other industries and rebrand. The current market conditions in the oil and gas industry suggested this was the perfect time to re-examine our business model, expand into other industries and add additional offerings. It also gave me an opportunity to step into a new consulting role. Market conditions are excellent opportunities for expansion!” Carmen Goss, HR consultant and career coach at Carmen Goss
“We only want to expand into new markets when we believe that we have something valuable to offer, otherwise it is not a good fit for our business or theirs. We need to do some research to see what businesses in these markets are actually looking for, what they are willing to pay for it, and whether or not we can differentiate ourselves from our competitors to provide a better solution. We don’t go looking to beat the lowest price, so we have to ensure that we compete on value. We also look to market sectors that are performing well that would want to take advantage of our services.” Merri Lemmex, managing partner of operations at Lemmex Williams Training Inc., lemmexwilliams.com
“First we recognize the need for the service, and then analyze our current infrastructure and ability to implement the program. Expanding into new physical locations is more of a challenge for a small business due to the financial requirements, so our decisions are based not only around the need by the clients, but also our ability to cover the expenses … Planning is key to successful expansion, as is listening and asking for client feedback throughout this process.” Megan Armstrong, owner and director of Dogma Training & Pet Services Inc., dogmatraining.com
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
Business owners helping business owners
under pressure, or existing customers are threatening to leave. Challenges of this nature often force decisions to seek out new markets and thus
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new customers. Truth is, under these scenarios it is usually not a matter
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neurs 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.”