The Three Pillars for Successful Entry into the New York Market
Breaking into the New York market can be challenging and quite risky for companies. There are millions of people living in our City, over 500 of the world’s largest businesses are in the borough of Manhattan alone, and our government is made up of over 150 different agencies. Navigating through all of this can be difficult and time consuming. If you plan to enter the New York market there are three things that you need to keep in mind if you want to be successful in the Big Apple, especially if your company intersects with state or local governments. Let’s explore the three pillars that you will need to work to build if you want your market entry in New York to be a success.
1. Gauge the Political Risk
An early task for any successful market entry in New York should be to determine the amount of political risk associated with your business and formulate a plan to mitigate those risks should they arise. Uber is a classic example to keep in mind. The ride application constantly battled with local government and taxi drivers over their services and the regulations applicable to their business. Their business was constantly being disrupted by local legislation and lawsuits that hampered their efforts. However, Uber has enough capital to weather storms like this, but your company probably will not. Before making your market entry into New York, you need to accurately gauge the amount of political risk that you may face from local governments. Having a plan to deal with any potential political snags will ensure that you survive market entry in New York. Without a plan in place to mitigate any circumstances that may arise, your business might not successfully enter the New York market at all.
2. Efficient Business Development Strategy
If your business is going to successfully enter the New York market you are going to need a strong business development strategy that is focused and efficient. How are you going to develop as a business? Are you going to focus on the private sector or are you going to try to sell to the government as well? If you want to be successful in a fast-paced market like New York you need to have a clear plan about where you want to head and how you are going to get there. Developing a strong business strategy is a great way to set goals, plan for the future, and map the steps that you will try to take to get where you want to be as a business. What a good business development strategy helps you do, and what any successful market entry requires is focus. Once you have a strong focus for your energies, market entry will be a lot easier and a lot less stressful. Time is money in New York City, so efficiency is key.
3. Corporate Social Responsibility (CSR)
Successful market entry also requires the support of the people living and working in the communities they are part of. New Yorkers want to buy products and work for businesses that exhibit locally focused corporate social responsibility. It is important that the business community gives back to the localities that host their businesses and are environmentally conscious. This feeling is particularly strong when the corporations or companies in question enjoy the benefits of city contracts. Sustainability needs to be central to your business growth without harming the integrity of the sustainability programs or inviting cynical accusations that your business is overplaying its good deeds and sustainability to drive sales efforts. Check out Urban Offsets, a forward thinking company developing community tree planting projects for businesses that are committed to reducing emissions locally.
Entering and staying in the New York market is tough, but it is not impossible. Successful entry takes planning, as well as local partners on the ground that know the City. At Capalino+Company we partner with companies to help identify and navigate political pitfalls, develop a strong business development strategy and stand-up a grassroots corporate social responsibility program. We work with our clients to enter the New York market, and ensure they hang around for years to come.