When a company expands into a new country it can potentially earn a much more profitable market share. It’s never been easier for global expansion, and both large and small business models can now give serious thought to international growth. However, some key factors need to be considered before you start selling abroad.
No matter how established or secure your existing business is, growth can always lead to risks. Growing globally compounds those risks, so a clear plan is essential. If you’re considering taking your business global, here are some of the key factors that you need to consider and address before you launch into a whole new market.
1. Company Commitment
You need every member of your team involved in the transition to global sales. Global expansion should be a priority for all members of your team, while also focusing on continued excellence in your existing bases.
2. International Business Plan
You should have a well-developed and constantly updated business plan in place already, but you’re going to need to start from scratch if you’re expanding into a new country. Do a cost analysis and profit projection, as well as your audience and competitor research.
It’s good to have representatives of your business on the ground, and that means additional costs. There are going to be legal requirements that need to be adhered to, and these will differ from country to country. Look at outsourcing your legal team, accountancy, and shipping. Look at firms like INS Global, who can manage your payroll in China and Asia much easier than you can from the office in your home country.
4. Get Online
This should be one of the first steps that you take once the legalities are in place. Make sure that your online presence is there before you launch into international trade. It’s a good idea to have separate, localized web pages for every country that you trade in. This helps avoid translation confusion and makes you much more digitally visible in your new country of operations.
5. Know your Product
Not all businesses have a space to control in every country. Your research should have indicated whether there is a demand for your product or service. If you believe that you can establish a position in a foreign market, then pick and choose the products or services that will gain you the most ground.
6. Price Setting
This is going to be a major factor that will determine your potential for international success. The wrong price can limit your chances of success, so you need to be aware of local average salaries, and how much is too much when it comes to pricing. You need to make sure that you can sell your product at a price that covers your costs and leaves you with a profit.
It can be both daunting and exciting to start planning for growth. Expanding into new countries can be the natural next step in your growth strategy, but a lack of planning and awareness can limit your potential to reach your business growth goals. Make sure that you do your due diligence, and your chances of becoming an established and profitable international brand will be vastly improved.
Interesting related article: “What is a Business Plan?“