At a certain point, ambitious business owners all start looking towards the same horizon. When they feel like they’ve conquered the domestic market or they’re well on their way to doing so, they want to keep the momentum going. They want to see just how far the business can grow and that will inevitably mean looking overseas. But what does it mean for your business and how feasible is it, really?
We’ll take a look at how your business can take off into overseas markets successfully.
Know the markets
Every time you want to expand your business, whether it’s domestically or overseas, you have to have an aim to it. You have to know that there’s a demand for how you want to expand and that you are the right person to move into it. Know if there are any competitors in the industry and if you might have to position yourself differently than you have had to in your domestic market.
Don’t assume the same value proposition and the same modes of communication are going to work as well as they already have for you.
Know your laws
You also have to know if there are any further limits on how you can take the business overseas beyond the obvious costs of getting set up fully. There are national differences in business law, for instance. This applies generally across the board but it might also apply to things like standards on certain products or certain services.
You may have to invest to reach higher standards or change the business while being careful that you’re not betraying your personal ethics or the values that your existing customer base has come to expect. It’s also crucial that you’re aware of any additional taxes you have to pay overseas and they can completely change how profitable your business model will be.
Know your locations
Beyond knowing the general market of a country, you have to look more specifically at different locations, as well. For instance, if you’re looking to set up some sort of retail property or even offices for an international team, then you have to consider the best commercial properties available within the cities and towns that make sense.
How close they are to a professional population or how valuable they are retail locations can play a big part in how effectively you can set up in that location. It’s always a good idea to take a trip personally and to get hands on with the locations you’re considering setting up in. Otherwise, you’re making decisions that aren’t fully informed, meaning they’re more likely to fail you.
Know your distributors and partners
You’re also likely to need the assistance of other services in getting setup overseas. For instance, if your product is to be shipped out to retailers across the country, then finding distributors is essential.
You might be able to find a company that can handle both international shipping as well as national distribution overseas, but the chances are that you’re going to need to make partnerships with two services that handle those responsibilities individually. Similarly, it’s a good idea to get involved by taking a trip to national trade shows in the country of your choice to figure out who you’re sharing the industry with.
Partners within the industry running related businesses create the best opportunity for cross-promotion and collaboration, which could give you the foothold you need into an entirely new market.
Know your etiquette
The best moves are those that are taken hands-on. That means that you might have to personally shake hands with those distributors, partners, any retailers, marketing firms and whoever it takes to help the business set up in a new country.
To that end, you want to make sure you’re building meaningful relationships as smoothly as possible. For that reason, it’s best that you don’t look like an ignorant tourist who has no idea how business is handled there. International etiquette rules might seem like they would apply just about everywhere in the world, but that’s a dangerous assumption to make.
You don’t necessarily have to speak the language, as interpreters can help with that. However, brushing up on overseas etiquette is the least that you could do. For instance, if you were to do business in Taiwan, then it pays to know that respectful behavior is vital in business meetings and that brutal or frank honesty isn’t appreciated. In some countries, preserving face will trump making a deal nine times out of ten.
Know the culture
It’s a big ask, given that it can take a lifetime to truly get to know a culture. But it you can’t do it entirely yourself, then it’s a good idea to have someone on your team that knows how well a business translates to a business. For instance, making an extra website for a new territory or making your brand fit their market isn’t always as simple as a word-to-word translation. It requires localization as well.
This isn’t just about making the written word understood, it’s about hitting cultural cues that fit with the country that you’re trying to expand to. Not all values are shared across the world, not all symbols and imagery mean the same thing, and not all messages are as acceptable as they might be in your home country. Religion, taboo, views of marriage and relationship. There are a lot of potential wires your business could get tangled in. Rarely when going overseas, is the smartest first move to go with something controversial. So make sure it doesn’t happen by accident and hire someone who understands the culture.
It’s a big ask. You have to have the same knowledge of the markets, the geography, the culture, and the industry links that a domestic business owner would have. It takes a lot of feeling out a country before you know whether it’s ready for your business. If you can get to that point, however, there’s every chance you could become an international success.
