Going global has never been as easy as today, although this practice has some risks of its own especially for small and emerging businesses. Entrepreneurs need to make an elaborate plan when they want to spread their company’s product or service to another market. In this article we’re going to mention some of the things they should have in mind during this process.
This is one of the most important part of creating a successful business strategy suitable for global market. Most people think that limited research about the target market is enough to make a plan, but they usually forget to calculate one really important thing, and that’s how will this expansion affect company’s business at home. Here are some of the things that need to be taken care of before international expansion.
Calculating the risks for the business back home- this can be done by elaborate research of company’s capabilities.
Studying laws, rules and taxes of the targeted market, including company incorporation rules- Different countries come with different laws and taxes and they need to be studied before entrepreneur decides to enter the market. There are also different rules that apply to company incorporation, and by far the easiest way to expand business abroad is to found a company on some of the off-shore territories around the world. These countries usually offer less strict incorporation rules and low tax rates. Singapore company incorporation for example is one of the easiest processes of this kind in the whole world.
Figuring out the needs of targeted market- This requires deep analysis of the market that should include: market segmentation, gap and SWOT analysis, as well as the figuring out how long it will take for the company to capture targeted sales.
Developing strategy and business plan for the foreign market- Each company should have short-, medium- and long-term business strategies, as well as defined goals and metrics. Business planning also requires good time management and the share of labor between members of the newly formed teams or company branches.
Establishing new team of proven experts- Team that’s going to work on the new market should be consisted of experts and in most cases hiring one or several local managers can be a great idea.
Adjusting company’s product for the foreign market needs- The product should be adjusted so it can fit the rules of the new market and its quality standards. It should also be protected by patent or trademark and all the info about it should be translated to local language.
Creating a marketing strategy- Marketing strategy should be adjusted to the local needs and culture. There’s also a possibility of hiring local marketing agency to do the work.
Budget preparation- With all the results companies will have enough information to prepare a 3 year budget plan, with real-time budget reporting and analysis.
Establishing relationship with entrepreneurs who do business on the targeted market- Establishing connections with local business or foreign entrepreneurs who do business on the market in question can be very helpful for these expansion projects. These small time co-ops lead to creating a solid ecosystem that’s useful for all of its participants.
After almost a decade spent working at various assistant positions, Daniel believes he has accumulated enough experience and knowledge to start his own small business partnering with close friends. When not researching about business matters, he likes to read contemporary fantasy novels.
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