New Territory Development Five Step Summary

For Companies with Less than ¼ Million Dollars for an Advertising Campaign

Step One: The Research | Step Two: The Introduction | Step Three: Your Viability | Step Four:  The Corner Stones | Step Five: The Follow-Through | Secrets and Short Cuts | In Conclusion

While even the weakest effort, applied to any area where there are people with spending money, will provide some level of return; the key to real success lies in the cost to revenue ratio, - making the most profit for the least amount of investment dollars and time.

Now those are really pretty words and they inspire the most enthusiastic head nodding all around the room filled with finely dressed executives.  Those words followed by a well researched market share potential along with lists of successful businesses in the area, moves the head nodding to vibrant visions of networking filled with hand shaking and elbow bending.  Unfortunately, that is usually where the understanding of what it takes to develop a new territory ends with most people.

Any well learned procedure can look so simple and easy to the layman looking on.  Take “magic” for example. No one sees the grueling hours of practice, practice, and more practice that it takes to make the end illusion look so smooth and so real.

If you have the patience and perseverance, you can learn the tricks of any trade.  The first test of your ability will be determined at this very moment. Do you have the patience and perseverance to read this summary all the way through to the end; and, catch every word at the same time?

Step One: The Research

Researching a territory means more than just looking up some statistics the government organized and published for you a few years ago.  Although it is important to obtain those numbers; because, those are the numbers you will compare your own findings against.  This combination makes up your first “Point of Reference” necessary to clarify the challenges that await you in your prospective new territory.

Your research of the territory will have to consist of talking to key company executives that are already at the heart of that local economy.  This will be easier if you already have a rapport with these people; however, it is possible to obtain a real insight into the potential available market share by simply calling these types of people and requesting a meeting.  This may cost you a lunch; however, the cost will be well worth it if they are willing to talk to you.  Although the real cost will lie in the time it will take, especially if you have to travel a distance to perform this task.  Few people would be willing to disclose pertinent information regarding local economic conditions, buying cycles, market saturation, and local trends to a stranger over the phone.

You would obtain the names of these people through the local Chamber of Commerce and the local Economic Development of the city you wish to pursue.  Often these organizations also have publications regarding the overall business condition of the region.  While these can be helpful inclusions in your data collection, please do not let it substitute for the most important aspect of connecting directly with the business attitudes at the grass roots.

Statistics on paper are two dimensional at best.  Revenue and profits are three-dimensional realities that must be supported equally on the other side of the equation!  Ultimately, your business must put down roots strong enough to endure whatever the economic climate of that region has to offer.  And that climate includes the overall demographic cultural behaviour of the population that will be the consumers of your product or service.

The manner in which you are received at this initial research level will give you a very clear indication of how receptive this area is going to be to you as a “new kid on the block.”

Step Two: The Introduction

There is more to the introduction of your offering, whether your offering is a product or a service, than fulfilling a proven need alone.  There is the awareness level; or the perceived need, in the prospects mind to consider.  If you roll in like the old evangelist, set up your tent, hang out your shingle and begin preaching at people, you’re far more likely to just offend the general populous these days.

On the other hand, if you approach a territory similarly to the way you are supposed to approach merging into ongoing traffic, you will increase your chances of success ten fold.

In other words, take time to look and find an obvious gap in your existing industry in that area. This will give you vital “positioning” in the existing momentum.  And, that existing momentum can then assist in moving you right along rather than mowing you over because you didn’t look first.

One key here is to find the pace makers of your industry in this particular area. Approach honestly and with the clear conscience that you have just as much right to do business in that area as anyone else, without coming across demanding as if the area owes you a living.  Approach asking if there is not only a need for; but also room for, another supplier of this particular commodity.  If you are comfortably honest and down to earth, it allows for a clear read of the response.  Are they as comfortable?

As you are introducing your company’s offering, collect enough “yes” answers to identify your path through this new territory.  Naturally you won’t win everyone over to your way of thinking.  However, the ones that offer potential are distinctly identifying your private path of interest through this jungle of a business world.

You will want to take note of the “no” answers and the “uncomfortable” responses as well.  These are the people you will not have to spend time or postage on later . . .  consider these people cost saving informants.

Few people recognize the added value of the word-of-mouth advertising that is going on during this phase.  This is especially effective if the person doing the research for you is known, established, and respected in the area.

Step Three: Your Viability

With each “yes” response you get during your introductory phase, you must discuss your pending office or show room space.  Ask these interested people what level of importance that aspect holds in their minds.  Do they appreciate the modern, overhead-saving option of home office; or not?  And if not, why not?

Naturally, if you are considering a retail type of operation, home-based may not apply at all.  Therefore, you would be researching location options.  And, you must be really careful regarding newly developing and trendy areas.
The emotional appeal here can often override common and good business sense.

It is imperative that an office or showroom be established within a three-month period of time from the beginning of your obtaining actual sales. Less than three months can appear too aggressive, and, longer than that triggers questions of service ability.  In other words, they will wonder if you are able to respond and keep pace with what they themselves perceive as acceptable delivery or service time.

It is also just as important not to rush this stage.  Be sure you have covered an effective cross section of every industry that could use your offering before committing to a new territory.

In conclusion of this section, I must say that physical presence is almost a non-issue when internet connection is available for ongoing contact with your clientele.  In this case, often a well established representative will offer all the presence you need.

Step Four: The Corner Stones

The strength and definition of any foundation lies in its corner stones.  For example, if you are establishing a retail shopping mall, the corner stones will be the major department stores you first sign on as major leaseholders.  The other stores will then fill in with respect to the popularity of those stores.

The same holds true in establishing a new territory.  You must fill orders for your offering with several major, well respected companies in the area.  By accomplishing this you pay for the cost and expense of researching the territory; you get to practice shipping to the area (if that is necessary); and most importantly, you establish very significant local references.

Step Five: The Follow Through

Now you transition into continuance.  Your first “follow through” step is to establish that office or showroom you’ve been talking about for the past six to eight weeks.

Next, you would maximize exposure by contacting everyone you possibly can (in the shortest amount of time that you can) to inform them of your established presence.  The most effective approach is to phone invitations to an open house in your new facilities followed by a faxed or emailed formal invitation.

After the open house, you will have time to establish yourself in the appropriate Breakfast Clubs; possibly join the local Chamber of Commerce and any other organization that will provide the necessary network opportunities.

If you find a representative sufficient for your needs, perhaps a private “showing” at a local hotel ball room or hostess suite would fulfill this “grand opening” procedure.

By following the steps in this order; by the time you have your open house or grand opening, you will be well equipped to offer intelligent conversation about the area; and your contribution to it, because you have done your homework.  You will also know the key players for you in the area. You will be able to speak factually as well as enthusiastically, rather than just purely emotionally.

Secrets and Short Cuts

One secret is timing. Few people respect the importance of maintaining a properly timed pace with the market they re approaching.  If you dawdle and neglect to establish a presence in proper time, the memory of talking to you will have faded by the time they receive their invitation to your open house.  This is similar to the proper sales process. If you leave a potential client too long before attempting the close, the incentive to buy cools off considerably and you increase the risk of losing the sale completely.

If you establish a presence in any way and then change that drastically within one year, you may sacrifice establishing stability in the eye of the potential clientele.  On the other hand, if the change is obviously a vast improvement; and, you can afford the advertising to accompany a move in location, for example - then it could serve to elevate your positioning in your industry for that area.

The worst thing you can do is establish a presence and then remove it!  That is known as shooting yourself in the foot.  To re enter, you do so limping; not only in the minds of the clientele that were lined up to buy your product or service, but also within your own momentum.  You are probably going to have to spend time and money re doing what had already been done and paid for initially.

Another secret is order.  The order in which you perform the steps is vital.  If you market and sell your product or service before you’ve done your “factual” homework, you will attract clientele playing purely “emotional” games. These are the type of person with unrealistic expectations of your service or product.  We all know the type.

However; if you have proper procedure, you will attract people that respect and appreciate the same.  They will be clear communicators and equally clear listeners, such as yourself.  You will be able to establish a growing, on going relationship with them. Therefore, your business will reflect that same growth and development.

Short cuts?  Sorry, there are none!  So; if you’ve skipped to this section I’m afraid you’re going to have to go back to the beginning and start over. And that’s okay. The process is cyclical.   The idea is to learn from your mistakes and spiral upward with each new discovery.   Remember that the shortest, most economic distance between where you are, and where you want to be, is the path that consists of building upon what you already have.

We all know and agree that you do get what you pay for in this world.  You also get the kind of people and clientele you are willing to pay for and work with, as well.

The last secret I am going to share with you is that you cannot do this alone!  While that is a fact, it does not mean that anybody can be your assistant in this effort.  You really do have to find the right person, especially if you are currently a one man operation, or a family business.   And sending brother joe or uncle so-and-so to a new territory is not the end-all be-all answer either, without the proper procedure behind them.  So many “right” people have been lost due to lack of proper procedure and vice versa.

In Conclusion

Please remember that this article has been presented as a “summary.”  The steps described have been summarized, and therefore, some very important details have been eliminated for brevity.

This article also began with the subheading “For Companies with Less than ¼ Million Dollars for an Advertising Campaign.”  There are formulas for cost to revenue ratios.  You do not have to re invent the wheel in this area; or, risk blindly.  If you establish the profit you want to generate, there are specific math formulas you can use as a guide to help you monitor, first, if your venture is feasible; and during the process, if you are financially on the track to success or bankruptcy.

Along those same lines, you can actually obtain a step by step Process and Procedure Manual  - actual “how to” instructions to successfully establish yourself in a given territory.  The same process applies whether that is geographically some distance from your current established client base; or, whether that is defined simply by the fact that you are now on your own as a new business owner and you want to establish your own client base right where you now live.

What you have to decide, first, is your priority: Are you in business to prosper financially and personally; or, are you in business to blaze your own trail?  

Trust me.  You will be doing only one; or the other, at a time!

by:   Deborah Charman, President
www.alternativesunlimitedinc.com

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