Before you enter a new market, answer these five questions.

A new market can look promising long before there is a clear reason to enter it. A few enquiries arrive, a competitor opens an office, or a distributor offers an introduction. Each is worth exploring, but none tells you whether the opportunity fits your business. Before committing people and money, use these five questions to turn an attractive idea into a decision you can explain.

1. Which customer problem are you solving?

Start with a specific buyer and a situation they recognise. A supplier entering a neighbouring country might initially target every manufacturer. A more useful starting point is smaller factories that struggle to source replacement parts quickly.

Find out how those customers handle the problem today, what delays cost them, and who approves a purchase. This gives your research a focus and helps you avoid building an offer around assumptions.

2. What would count as evidence of demand?

Ask about recent behaviour: the last purchase, the alternatives considered, and the reason for choosing a supplier. Questions about what someone might buy tend to produce less useful detail than a real example.

Then test a concrete next step, such as a paid trial or a quotation for a defined requirement. Decide in advance what response would justify further investment. A friendly conversation and a buying decision answer different questions.

3. Why would customers choose you?

Compare your offer with the customer’s available alternatives, including an existing supplier or an internal workaround. Look beyond price. Reliability, local support, delivery times, and ease of ordering may influence the choice.

Choose a difference you can demonstrate. If faster delivery is central to your offer, check that your stock and logistics can support it before making it a promise.

4. Can you serve the market profitably?

Work through a realistic order from first enquiry to payment. Include sales effort, delivery, support, returns, and any local requirements that need specialist advice. Check who will do the work and what existing commitments could be affected.

An opportunity can generate revenue while stretching the business beyond its capacity. Make those trade-offs visible before deciding how quickly to expand.

5. What is the smallest useful test?

Limit the first test to a customer segment, a narrow offer, and a defined period. Agree a budget, an owner, and a review date. Track buying interest, the effort needed to win an order, and whether delivery works as expected.

Finish the review with a decision: continue, adjust the offer, or pause. A focused test should leave you with fewer unanswered questions and a clearer reason for the next investment.