If you are thinking about creating a larger organization, chances are that you will face the growing pains and have to make sure that you are able to handle the obstacles ahead. If you have grown out your size and organizational structure, chances are that you will need to seek new markets and increase your service or production volumes. Doing business on a global scale, however, is not suitable for all enterprises, therefore, you will need to ask yourself some relevant questions. Below you will find a few of them to help you make an informed decision.
Delivery Costs and International Competition
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The first question you need to ask yourself before you start turning your small business into a global brand is whether or not your services or products can be successfully marketed abroad. You will need to find out more about the global competition and the preferences of customers. It might be a good idea to create a competitive analysis before you make a final decision and find out more about the local and global firms already present in the market.
Legal Knowledge
When you are dealing with clients from abroad, you will need to review your contracts and make sure that you are complying with the international and national regulations. This can be a costly process, as you are more than likely to need an international business expert to guide you through the policy and contract creation. If you believe in the prosperity of the new market, however, you can give it a go.
Can You Communicate with Your Customers Abroad?
It is important that your brand speaks the customer’s language, If you need to get your site or advertising translated, you will need to get it done professionally. You can get in touch with International Language Services, Inc. to get a quote for the languages you would like to use on your website and advertising materials. While using a specialist service will cost you money, it is important that you are able to connect with your new target market.
What about Currency Fluctuation?
One of the risks you should take into consideration is the political and economic stability of your country and the one you would like to export to. You might need to upgrade your accounting system to handle multiple currencies and make sure that you are not losing out on currency price fluctuations. You will need to consider automatically adjusting your prices based on the value of the local money, so you will get your profits at the end of the transaction.
Your Market Entry Strategy
Of course, the most important decision you will need to make is how to enter the new global market. You will need to consider getting a report on the industry and the country, and seek collaboration with wholesalers and retailers, so you can enter the market without taking too many risks. You might also offer franchises for companies, or set up joint ventures, taking advantage of the local knowledge of your partners and sharing the risks at the same time.
What Is Your Predicted Return on Investment?
Before you expand your business and invest money in developing new markets, you will need to determine the long term return on investment. It might be a good idea to get in touch with a business planning and financial expert to help you create accurate predictions and a step-by-step action plan. You need to be aware of the risks and the challenges ahead, and always work with the best and worst case scenarios, so you can be prepared for growth that is too fast and difficulties getting your foot in the door, too.
Environmental Analysis
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If you would like to be sure that your business will survive the expansion and you will not fail meeting the needs of your new customers, you might want to create a PESTEL analysis. This method is used by economic and business experts around the world to determine the market conditions in the new location. You can examine the political, economic, social, technological environmental, and legal environment to find out more about the business conditions you will need to operate under.
If you are currently considering expanding your small or medium sized business to a global scale enterprise, you will need to complete a reality check and become aware of the opportunities and the risks. Work out which is the best market entry strategy and create a detailed business plan tailored to your future goals.