If you’re the owner of a small business that is successful and profitable, you may be considering expanding into international markets. If you are willing to invest your time and resources this can provide a great payoff. You may be wondering where to start with this process, this is where we can help.
Perform Due Diligence
Before going global, it is critical to understand what the full impact on your business will be.
- Prepare a market segmentation analysis to determine if your product will sell in the local market
- Prepare a product gap analysis against local products, where does your product fit?
- Perform a SWOT analysis against the competition. How much is the local product selling for?
- How big is the market and how long will it take you to meet your sales targets?
Develop a Business Plan
Each market differs due to economic, cultural, governmental, and market conditions. It is important to develop a local business plan.
- Define short, medium and long-term strategies
- Define goals, objectives, and success metrics
- Complete the business model and structure. Are you going to open a new sales office or branch?
- Develop a top-down annual budget
- Develop a tactical project plan with commit dates
Make Sure You Have the Capital
Determine the costs of expansion and set out a budget. Within some markets, there are financial incentives for businesses expanding into their locality. Growing markets want to boost their economies and may provide benefits to those who choose to set up within them. Make sure to research any stipulations and what you’re committing yourself to.
Prepare for Legal Issues
It is critical that legal processes are put in place to minimise risk, and legal documentation must be in place prior to operating within the country. This may mean paying a larger sum upfront but you will be protected from large payouts later.
- Review regulations to ensure compliance and certifications are obtained if needed
- Maintain corporate records and governance
Make Use of International Talent
Consider developing an in-country hiring team, this will mitigate compliance risks. The new hires will need to be made aware of your company values, culture and ethos in order to represent you successfully in a foreign market. Hiring locally may present legislative hurdles, but there are multiple benefits of having employees within your business that are culturally aware.
Build Relationships with Local Businesses
Relationships with local businesses can help you discover industry trends and practices that are unique to that country. You could also make use of conferences, events and even social media to grow your network. You may want to consider local partnering, they will already be familiar with a region and can help create good networks. It could be beneficial to both partners who share similar goals.
Consider Working With a Global PEO
Partner with a company that focuses on understanding global markets, and mitigating risks. By working with a provider of global PEO solutions, you can protect yourself from legislative issues. This also allows you to focus on other tasks while these difficult tasks are outsourced.
Get in touch today for advice from our team of experts, we can also help with your business plan requirements! Contact us online using the contact form or call 01604 420 420.