Entering a new geographic market can create access to new customers and growth opportunities, but demand alone does not make a location viable. Companies also need to consider demographics, competitive conditions, real estate, operating requirements, regulations, and how they will reach customers once they enter the market.
Looking at these factors together can help companies identify locations that support both initial entry and longer-term growth.
Assess Demand and Market Conditions
Market research should begin with the customers a company expects to serve.
Population, income, employment, business activity, competitive density, and projected growth can help determine whether a location contains enough of the right audience. The U.S. Census Bureau provides demographic and economic data that businesses can use to compare geographic areas and evaluate potential opportunities.[1]
Local conditions can differ even among markets with similar population sizes. CBRE’s analysis of nearly 50,000 U.S. retail clusters, for example, found that store growth was correlated with factors including population trends, unemployment, and surrounding market characteristics.[2]
Companies should therefore evaluate the specific conditions that affect their business rather than relying on overall market growth as a proxy for opportunity.
Determine Whether the Location Supports the Business
The physical requirements of an expansion depend on the operating model.
Retailers may prioritize customer access, visibility, surrounding businesses, and local demographics. Business offices may place greater weight on workforce availability and transportation. Distribution or manufacturing operations can depend more heavily on logistics, labor, infrastructure, and suitable facilities.
Location strategy can also affect operating factors and access to talent. CBRE’s location strategy team notes that where a company locates can support its business operations and organizational goals, making location selection a broader strategy move than just a simple business decision.[3]
Before committing to a location, companies should also review zoning, licensing, permitting, tax, and other requirements that vary by jurisdiction. The U.S. Small Business Administration recommends considering these requirements alongside property costs and other location-specific expenses.[4]
Plan How You Will Reach Customers
Entering a market and acquiring customers within it are separate challenges.
Companies need to determine which acquisition channels fit the audience, geography, and offering. A strategy that performs well in one territory may require adjustments in another based on customer behavior, market coverage, or local requirements.
This is particularly relevant for businesses using field sales or other direct acquisition channels. Since 1994, Cydcor has been a leading in-person customer acquisition provider for many enterprise brands looking to scale beyond digital channels across North America.[5]
Cydcor’s approach includes evaluating target customers, competitive conditions, market coverage, and channel strategy before launching face-to-face customer acquisition campaigns. Cydcor’s network can expand programs into additional cities and regions based on performance and business goals.[5]
Customer acquisition planning should therefore happen alongside location planning. A company needs both a reason to enter a market and a practical way to reach the customers within it.
Build for Growth Beyond the Launch
A successful launch does not necessarily mean the model will scale.
Before entering a new territory, companies should define how performance will be evaluated and what would justify further investment. Relevant measures may include customer demand, acquisition performance, operating costs, capacity, and the ability to replicate the model elsewhere.
Expansion can also be tested incrementally. Rather than treating entry as a permanent commitment from the outset, companies can use early performance to refine their approach before allocating additional resources.
The strongest market-entry decisions consider the full operating picture: who the customers are, whether the location supports the business, what local requirements apply, and how the company will reach and serve the market.
Disclaimer: The information provided in this article is for general informational and educational purposes only. While we strive to offer practical information, we make no guarantees regarding the results you may achieve. Any actions you take based on this content are at your own discretion and risk. This article does not constitute professional, legal, or HR advice.
References
- U.S. Census Bureau. “How to Build Customized Industry Groups and Geographic Areas to Conduct Business Research.” May 27, 2024.
- CBRE. “Navigating Retail Vitality: Making Smarter Real Estate Location Decisions in a Changing Retail Landscape.” December 10, 2024.
- CBRE. “Location Matters.” February 7, 2024.
- U.S. Small Business Administration. “Pick Your Business Location.”
- Cydcor. “Our Process.” September, 2026.
