Things To Consider Before Internationalising Your Business
Expanding your business is an exciting yet stressful time in any business owner’s life, especially when expanding internationally. When expanding into international markets, it opens you up to an entirely new market of people that your product or services can be allowed to significantly grow. Before expanding, it is essential to understand the hazards of international expansion and make a well-structured international plan before expanding.
You can make an international plan in a number of ways, whether it’s already finding international teams or doing research into the cultural differences and language of the country you’re expanding to in order to understand and communicate better with your audience. In this article, we will go through some of the things that you need to consider before internationalising your business.
Find the right partner
The most important thing about international success is finding the right partners to understand the local market, culture and trends to establish a short and long-term strategy that benefits long-term success. Many companies see international sales as more of a transactional approach rather than a personal brand that can relate to its audience. This converts into short-term sales and can result in your consumers losing trust in a brand and building a bad reputation.
Check if you can afford to expand internationally
One of the most important things you are going to need to do before expanding your business internationally is to analyse whether you can afford to expand. Conducting operations abroad comes at a cost. Whether it is from customs and travel to Shipping and production, from country to country the costs can vary and some regions even have unique costs specifically for that country.
One example of this is customs, where countries have their own rules for customs and in some countries what’s illegal in the UK, bribery is perfectly acceptable in others such as Mexico. In some countries, you have to pay government officials when you need things done quickly. the best way to get around this is to work with local professionals who understand the local cultures and rules and analyse whether you can actually afford to expand to that country.
At the end of the day, you’re starting a new business in a new country, you do not want to be following any cash flow problems later down the line. A good idea is to create a list of everything that is going to be needed, the price it is going to cost and whether the profits add up and is going to be worth it. Once you have created this list and totalled It up and looks like a feasible option then you can make a decision to expand.
If the numbers do not add up and your starting costs are going to be too high, it will take you years to recoup and it may not be a feasible option.
When first determining whether to expand internationally, it may be first best to look at countries closer rather than further away. One thing that could be similar is the language preferences and Lifestyle. Due to distance it would not cost as much or be as much effort as expanding far away. One example would be America trading with Canada it would be easier to expand into this country due to brand recognition and a lack of language barriers so it would be more popular than somewhere like the UK.
Do you have strong brand recognition in your country? Do your nearby countries know who you are? Wouldn’t it make more sense to market to them first? It is no secret that the world is becoming borderless through globalisation. People are more familiar with other brands from different countries and different concepts every day. In fact, it is highly sought after. What if your product or service had a brand already and it already has recognition, wouldn’t other countries need your product or service due to its individuality or simply just your brand?
People may have seen you through social media, blogs, videos and anywhere else you may be. If this is you, then you are already one step ahead of the game. If this isn’t you, then the first thing you need to do is start working towards building brand recognition throughout your country before expanding internationally. It is not unforeseen that new brands from a different country have set out in a new country and have been anticipated thoroughly.
Get The Right Insurance
One of the most important things you need to do before international business expansion is protecting yourself financially. You can do this by getting the right insurance. Chances are when expanding internationally, one type of business will be the selling of goods or services on credit. For this type of business, you are going to need a credit insurance broker that is going to help you protect your financial assets. You are going to need this if your clients can’t pay due to insolvency or negligence. This can seriously hinder your growth and expansion and protect you from insolvency and allows you to grow without worrying. This is extremely important when expanding internationally.
International expansion can be an exciting, yet stressful time in any business owner’s life. There are many mistakes that can be made and it can cost you everything. True success internationally is when you plan, strategise and stay focused.