So, you’ve heard that you can grow your business by taking it global, but you’re not quite sure where to begin. It is a big world out there, and no country, culture, or community is the same. But even small businesses can realize the benefits of selling in international markets if you have the right tools and guidance. Questions to ask before you start growing internationally
Let’s have a look at these questions that will help take your company global.
Expanding internationally puts strains on your staff because employees may need to adapt their duties either at home or overseas. There will also be new opportunities for employees with the necessary skills. Employers must determine whether they have the right senior employees who they can move from current positions and place into senior roles in the international arena.
Do some extensive market research into your chosen location with a focus on the potential customer base, as this is the main priority in ensuring your move into a new country is worthwhile and profitable. Who are the consumers? How much do they need your product? Can you compete with local competitors? Is there a true niche for your offered product or are you replicating?
If the market research has shown your expansion plans to be potentially lucrative, it can be tempting to jump in head-first without a full cost analysis. However, being able to properly finance your plans and understanding exactly how you will do so is incredibly important to avoid bad investment. Understand your cash flow and assess the risk in laying out capital. Consider how strong the likelihood of a good return is on your investment.
Logistics research can yield information on the availability and nature of the various channels of distribution and storage capabilities in the target market. This enables the marketing function to develop a logistics plan to get the product to the customer as quickly and as cost effectively as possible.
Pricing is one of the most finicky and frustrating aspects for many businesses.
For example, a bottle of water in the US costs about $3 in the streets of New York. However, a bottle in China costs about a third of the bottle in New York.
Failure is bound to happen but learning how to combat failure is what differentiates. good companies from great ones.
If you do end up expanding into a new territory, you need to know that there has to be a backup plan in case the business doesn’t work out as planned. This is why having an exit strategy is imperative.
While there are benefits to growing a business in a foreign market, there are also a number of challenges. Addressing these concerns in the early stages of expansion can help companies succeed internationally.