Expanding your business globally is a momentous task. Smart and bold business leaders plan this move thoroughly and then execute it with near-perfection. As you grow your business internationally, your organization will step into countless new situations. How well you are prepared for them will determine your success in the foreign markets. As LFNT Distribution Co-Founder Colbey Pfund points out, you need to consider several things for business expansion. Let us take a look at some crucial aspects of growing your business globally.
Understand the Full Impact On Your Business
Going global will affect your business on multiple levels, and you need to have a deep understanding of what these potential changes are beforehand.
- Use market segmentation analysis to see how well your product will sell in local markets.
- Use product gap analysis to identify any unmet demands
- Use SWOT analysis to gauge competitors. Since you will probably be offering a pricier option you also need to know if the market will welcome you.
Creating a Localized Strategy and Business Plan
The different economic, governmental and cultural conditions diversify markets. Success in these markets is not possible without a localized strategy and business plan.
- Create short, medium, and long-term strategy with realistic goals.
- Outline metrics for goals and success.
- Determine whether you need to create a separate sales office, branch or entity.
- Create a top-down annual budget.
Ensure Your Product is Really Market-Ready
Using the findings of your product gap analysis, make sure your product is market ready, which helps you achieve superior product differentiation.
- Examine relevant government and industry related regulations and acquire all required compliance and certifications.
- See if your product requires any localization.
- Acquire all trademark, copyrights and patents related to your products in the new country.
- Use local standards for testing and quality assurance.
- Consider building a local distribution and logistics network.
Ensure Your Organization is Ready
As you go global, you will face cultural differences. These will manifest in different languages, customers, regulations and so on. Your organization will have to be flexible in implementing policies and procedures internationally.
- Determine which organizational structure is most suitable for executing your strategy.
- Create policies in compliance with local requirements.
- Attract the best local talent with competitive packages and benefits.
- Ensure your IT infrastructure is compatible with the local infrastructure.
Create a Comprehensive Go-to-Market Strategy
This will help you market and sell your products more effectively. Make sure your sales strategy and delivery, branding and value proposition, marketing programs, and pricing are all addressed by your market strategy. Understanding your target audience is basic tenet of every successful marketing strategy as explained by Nick Chasinov, founder of Teknicks.
- Define the most efficient sales model and sales methodology
- Figure out whether its best to create a new brand.
- Create an all-inclusive marketing plan and smart KPIs.
- Determine the best pricing model, keeping in mind the dynamics of the foreign markets.
Establish Strong Legal Processes
Some countries can be quite litigious, making it important for you to install strong legal processes. This will minimalize risks while also ensuring compliance with foreign government agencies that require legal documentation.
- Create localized agreements.
- Implement corporate services such as immigration, shipping and customs.
- Retain corporate records.
Forge Affiliations with Local Businesses
Building relationships with businesses having complimentary products and services gives you a competitive advantage.
- Create partnership and distributorship programs.
- Form an ecosystem strategy.
- Raise an alliance team that creates and manages relationships.
Crossing international borders with your enterprise is one of the boldest things you can do. But it also needs to be among your smartest undertakings. Keep the above aspects in mind as you grow your business globally.
Fatima Mansoor is a writer at Aepiphanni, a small business operations and strategy consultancy that exists to help small business owners CREATE | DESIGN | BUILD extraordinary businesses. She specializes in business & entrepreneurship, digital marketing, and health & fitness. Her focus is on creating compelling web content for small and medium businesses form diverse industries. She mostly writes for entrepreneurs and marketing agencies across the US, Australia and UK.
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