Have you been thinking about expanding your business globally?
Are several questions plaguing your mind?
It is normal to have a lot of questions when you first decide to expand your business globally. After all, it’s a big world out there.
If you are confused about where to start, here are some tips that will help you with your business expansion.
1. Asking The Right Questions?
Yes, you have a lot of questions floating around in your head but are you targeting the ones that will help you with your business expansion.
Here are four of the key questions you must have a positive response to before you proceed with your plans for expanding globally.
- Is the product relevant to the targeted culture?
In order to answer this question, you must do market research. It is easy to find out about any culture these days because information is at your fingertips via the internet and even by talking to people who are a part of that culture in your own country.
Talk to immigrants especially those who have just migrated to get a feel for your intended market in the country of your choice. Once you start communicating you will easily find out if the product you are selling is viable in their country.
- Who are your competitors in the targeted country?
If you are introducing something that is new to consumers in that country then the good news is that you have no competition. However, this means that you will have to spend a great deal of time educating people about your product, so get your advertising dollars ready.
If you have competitors in the country then you will need to find a way to make your company stand out. You will need to research and find your competitors’ weaknesses. You can do this by finding a way to talk with their customers discreetly about the good and bad of the product.
- What amenities are available in the country?
If proper production of your product is dependent on high-speed internet, good roads, phone service or certain ingredients then you will need to find out how you can have what you need in the country you are considering for global expansion.
You should also consider how you feel about the country in general because as part of the expansion team you are likely to have to spend a great deal of time there. Consider how comfortable you think you will be with the culture and general lifestyle of the people.
Once you have asked these all important questions, if your targeted country fails to meet your standards, you should not give up, just pick another country. You are almost always likely to find somewhere that meets your expectations.
2. The Global Business Expansion Plan
Now that you have asked yourself all the right questions, it is time to start thinking about your global expansion strategy.
Preparing an official plan is the best way to get started. Use the information you have collected from your research to come up with your marketing plan.
Look over your plan thoroughly and consult with your business partners who might be able to identify pitfalls that you cannot see.
Start looking at the best methods of distribution for your product. You should look into working with agents where appropriate or having your own warehouses.
Having your own warehouses may initially be expensive but the long-term savings might be worth it.
Pricing of your product is another important consideration. You will need to try and get low-cost deals to import and export your products so that you can pass on the lowest prices to your customers.
You can cut down on importation cost if you make the product in the country.
Check out the branding, labeling and packaging policies of the country you will be exporting to this is very important.
The last thing you want to do is break any regulations because this will mean you may end up having to repackage your goods more than once.
3. Understanding Another Culture And Adapting To It
The success or failure of your expansion is greatly impacted by how well you and your business partners understand the culture of the country in which you are about to launch your expansion.
In order to successfully launch your business, you will need to meet with some of the key people who will help your business grow in the country.
Your global expansion will thrive if you create the right business relationships.
Here are a few tips to help you sail through those all-important business meetings:
- In some cultures launching right into business even if it’s a business meeting is not appropriate. You may need to make small talk to break the ice before getting down to the nitty-gritty of the business at hand.
- Make sure you have lots of time to spare, rushing the meeting will not look good and may weaken your proposal, especially if you are bargaining on price.
- Watch your body language, when dealing with another culture. Body language is not universal. An action you do not mind, may offend somebody from another culture and put your expansion deals at risk.
- Always have your own Architekst interpreter on hand. It is best not to use one that is provided by your associates in the other country because their interpreter will always have their best interest at heart over yours.
Global expansion is a good way to ensure the continuity and the longevity of your brand. If you are interested in global business expansion then you should do as much research as possible to ensure that you have a foolproof plan.
Expanding into another country can be challenging but once you arm yourself with the right knowledge you should be able to pull off a successful expansion.
If you would like more information on how to succeed in business both locally and internationally, then visit our blog to get all the information you need to make your business a success.