Trying to grow your business alone can be risky and unproductive because no one person or organization has all the necessary answers, connections and resources needed for growth. People and organizations outside of your company and industry who share the same customers can help you grow your business. There are even circumstances in which your competitors can be smart partners to help both of you reach new markets, develop new products and tap into additional talent.
A market map is a powerful, easy-to-use business growth tool that can help determine how and with whom we should develop smart partnerships. Updating your map quarterly helps you stay on track in continually evolving markets. Once you’ve completed your first map it’s fast, easy and fun to update.
The tool allows you to map all the players in your marketplace, shows where and with whom you spend money, lays out the competitive landscape and identifies the supply chain and communication channels. It is a snapshot of your current strategy and a potential roadmap for future growth. There are 10 simple steps to create a market map.
Start with a flip-chart sized piece of paper, colored sticky notes and your team. If you can’t meet in person, use a free service like Zoom, and use their digital white board and sticky notes to build the map. In the middle of the of the sheet place a sticky note with your company name on it.
On the left side of the paper make a column entitled “customers” and from top to bottom list all your current customers and qualified prospects. If there are too many to list, you can use segment names like civil engineers or residential developers, and then list individual names under each segment.
Make a column next to your customers called “channels” and list all the individuals or companies that can sell, resell or refer business to you or enhance opportunities with current customers.
Draw the connections using a line between your company, channels and customers. The more connections you identify, the stronger your network for growth. Fewer lines drawn identifies a path to new relationships and opportunities. Assign people to those qualified opportunities ASAP.
On the right side of the sheet make a column for all the “suppliers and partners” and list the companies with whom you work and those you don’t. Strategic business plans include suppliers and partners who should be some of your greatest advocates, advisors and business developers.
Draw a line between your company and suppliers with whom you do business. Leverage those current relationships for stronger growth and connect with those qualified players you have no relationships with but may provide mutually beneficial opportunities.
Create a column with all your competitors, list as many as you can as you need to be aware of everybody — don’t underestimate anyone.
Draw lines from your competitors to your customers, prospects and channels. You’re looking for as little overlap as possible here. Fewer connections from competitors mean you hold a unique position. More connections mean you are more likely to be selected on price.
At the top of the page list all the trade or business associations, media, institutes, networking groups and alliances that are relevant to your company and draw a line from your company to those with whom you have relationships. Strengthen existing relationships and forge new connections to generate new opportunities.
Put a dollar sign on the relationships where you make and spend money. These are the places you have greatest power. The areas you don’t spend time, money or resources are your weak areas that could present some of your greatest possibilities to grow.
About the Expert
Judith M. Guido is the chairwoman and founder of Guido & Associates, a business management consulting firm in the erosion control and green industry. Guido can be reached at 818.800.0135 or judy@guidoassoc.com.
