Tips for expanding your business overseas
If you have been looking at other potential markets or are even considering taking the plunge into the international market here are some key tips to consider before and throughout the transition into a new market.
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Have you done your research?
The next step is to conduct research. There are so many levels of research needed to maximise your potential for success. You will need to do market research in the new market to help you understand uncertainties, such as whether there would be a demand for your products, to understand whether there are already competitors with similar products existing in the market.You should also be analysing recent historical data, future forecasts of the economy and starting to immerse yourself in the financial media of that country because an understanding of the potential fluctuations in the economy is vital.
Understanding some key factors will underpin your success when expanding overseas:
Economy & Market
- Who are my competitors? Who are my customers?
- What types of local experts should I employ? Is it worth forming local partnerships or Alliances to gain extra knowledge or easier penetration into the new market?
- Will you need to alter your delivery and shipping services now that you’re international?
- Are your technological resources able to operate effectively?
- What is the cost of entry and the cost of operating?
Culture & Society
- How is the local culture different from you home culture? Is cultural immersion and training necessary?
- Do work practices need to be altered to be most effective in this country? Are there different workplace norms?
- How much are customers here willing to pay?
Have you done the necessary planning?
One major factor in successfully moving your business overseas is whether you can financially support the venture. As with most business decisions you should be working out exactly how much everything is going to cost. When you are budgeting for overseas expansion you will have to consider costs that you haven’t had to deal with previously. Not only the overhead costs of setup in the new country, but you will also need to conduct research to understand how much employees will need to be paid and what the laws are around job termination.Risk management
What's your best method for entering the market?
Look within your business and look to see what employees you have, and what systems you have that will adapt to the international market and what you may need to change.Once a business owner starts to understand where they will be expanding overseas and the market they are entering, the next key step is to consider what’s needed for the business to effectively transition into the new market.