As an entrepreneur and business fellow, I know how unpredictable businesses and ventures could turn out. Auditors and analysts alike are still battling with this fact. Sometimes, it’s like we are riding at a pretty fast pace and we feel on top of the world. At other times, however, the profit/sales gradient can fall, slightly or even sharply at worse scenarios. When the latter happens, we have sleepless nights or gain an increase in our blood pressure level. In a way to address this, the adjacent market opportunity comes as a financial lifesaver.
The truth about business
No investor wants to record a loss. We (like our businesses) all love to appreciate in value and build a stock that keeps growing. So, what do we do when we observe impedance? It is good we understand the fluctuation that greets every market. Nigerians will say “everyday no be Christmas” meaning (what we can interpret) as the English idiom goes: life is not a bed of roses.
However, in this post, I will take you through the concept of Adjacent Market and how you can deploy this to your advantage as a business owner or investor. It’s what top executives have used and are using. The good thing is, it has helped them scale up and they constantly recommend it to younger ones entering into the business environment.
How it works
Some businesses do not necessarily need to hit hard times before harnessing the adjacent market opportunity. It’s more about keen observation and daring to tap into a new market where one’s expertise is relevant. As a matter of fact, this is how some businesses define expansion.
First thing first, to attain success when considering the adjacent market, skills and market accessibility are key factors before anything else. A prospective adjacent market explorer must be skilled enough to determine when the time is ripe to dive. Nothing is more frustrating when one dives and lands crashing. Therefore, in order to avoid regrets like this, one must be cautious enough to ensure that one’s choice in attempting to explore the adjacent market is well calculated.
If you have to learn a new skill to operate effectively in a new market, this is not your adjacent market. This is enough clue to help you identify your adjacent market. Also, taking your existing products or services to new markets (places or people) isn’t an adjacent-market attempt, either. The adjacent market leverage is a financial literacy provision of you using your skills, capacities or resources to do extra things that can, in turn, generate revenue for yourself or firm.
Dele is a journalist. He writes and works for a leading newspaper in Lagos state. If Dele discovers that he has some time on his side after work to learn graphics design so he could take up jobs in this respect, Dele isn’t entering his adjacent market. Consider this, however, if Dele uses he free hours to edit books for authors and publishing firms, this is “adjacent marketing.” It is so for Dele (this time) because he is using his writing and editing skills to ripe extra revenue.
A classroom teacher who sets up extra coaching center for afterschool students is harnessing the adjacent market window. A food vendor specializing in the sales of yam tubers can dare to add Potatoes. Since the set of skills required to advertise, source and supply both goods is the same, the said food vendor is, therefore, not committing a market blunder. Without missing the point, it should be clear that the adjacent market strategy isn’t completely a person-centered concept as a team can enter the adjacent market as an army.
How a team can enter their adjacent market
Wale and Kate are co-founders of a mobile App –BarberShop. This digital product connects barbers on a platform and helps customers find the nearest and available barbers to ease the stress of finding barbers around new neighborhoods. Also, to save time spent in barbers shop having to wait before being attended to.
Wale is a Web/App developer while Kate is a product manager. Collectively, they have been able to marry ideas to grow the BarberShop App into revenue generating startup. It’s 1 year of total commitment to the scaling up of the startup. Their startup is flourishing and they think it’s time to add a new source of income stream. They finally agreed on building websites and mobile apps for clients. This step is an attempt at tapping into the adjacent market.
Who can consider the adjacent market option
The world has seen both flourishing companies/individuals or their failing counterparts. For a business not doing well, perhaps, it’s a pointer for you to itemize other services you can render with same skills or capacity. The beautiful thing is that it can either be an expansion strategy for a business or a way to salvage the market’s unpredictable, unfavorable situation.
As financial experts have advised, you must look before you leap, always. Entering into the adjacent market is like entering into any new market. While you pay attention to the opportunities, you must equally pay attention to competition, market volume, profit margin, and your new market’s legal considerations.
You too can definitely earn more through the adjacent market window. So, go and think it through today