# How to assess a new market before you enter it

A structured approach to sizing, testing and sequencing entry into a new market — and knowing when not to go.

Market entry decisions are often made on enthusiasm and corrected on cash. A structured assessment will not remove risk, but it will show where the risk sits and how much it costs to reduce.
## 1. Define the market precisely
"The Ontario market" is not a market. A market is a defined set of buyers with a shared problem, reachable through identifiable channels. Narrow definitions produce honest numbers.
## 2. Size it from the bottom up
Top-down estimates built from industry totals tend to flatter. Count the buyers you could actually reach, estimate what each would plausibly spend, and apply a realistic share. If the bottom-up figure is a fraction of the top-down one, trust the smaller number.
## 3. Map the competition as the buyer sees it
- Who does the buyer use today, including doing nothing or doing it in-house?- What would it cost them to switch, in money, time and risk?- What advantage would make switching obviously worthwhile?
## 4. Identify the barriers
Regulation, licensing, distribution access, local relationships and brand trust all take time. List them, estimate the time and cost of each, and decide which must be cleared before launch and which can follow.
## 5. Choose an entry mode
Options range from exporting into the market, to partnering, to acquiring, to building from scratch. Each trades speed against control and capital. The right mode is the one that tests the thesis fastest at an acceptable cost.
## 6. Set kill criteria in advance
Decide before entering what results, by what date, would mean stopping. Writing this down early protects the decision from sunk-cost reasoning later.

Source: https://adlerlynx.ca/insights/market-entry-assessment/