When businesses have achieved a certain level of success in their domestic market, the next logical step to take is to expand and penetrate the international market. If you are looking to capture the growing global demand, discover key areas to look out for before expanding overseas.
If your business has seen great success in the domestic market, you may be primed to expand overseas to grow your reach, capture additional consumers, and gain market exposure throughout the world. Fortunately, international business and trade have been made more accessible due to the digital revolution, technological advancements, and international trade policies. However, as with any business venture, it is crucial to not be blindsided by the positives and maintain a cautious disposition.
There are many nuances that drive a business decision. Before you jump the gun and proceed to take the major steps towards global expansion, here are three ways to prepare your business for international growth.
1. Run an in-depth market research
Businesses do not run on gut feelings alone. To achieve business success, it needs to be backed by an in-depth understanding and analysis of the targeted markets to validate any assumptions made. Similarly, success in international business and trade also relies on excellent research. Research not only narrows down the geographic markets to expand into, but it also sets the expectations about the revenue to be generated. Doing your due diligence will allow you to adjust the product or service to better suit the needs of the local market, marketing and advertising efforts as well as financial investments required. Moreover, certain countries have several protection policies in place to handicap imports of foreign competitors. Such measures include tariffs, subsidies, import quotas, and non-tariff barriers. It is worth noting these policies as they can easily limit your options.
You may want to consider relying on a series of metrics relevant to your business. Metrics such as the PESTLE and the Total Addressable Market matrixes allow you to outline the most promising markets as well as both macro and micro-environmental factors that will impact your market success. This will help you build a solid foundation for your market exploration and prioritisation work.
2. Develop a clear and detailed plan
Undoubtedly, a plan is required for any business to succeed, even more so when you are dabbling in international trading. Once you have a clear understanding of the markets you plan to enter and their respective nuances, developing a clear and detailed plan is the next step. This business plan should integrate the various resources you will be required to hire, establish communication between your different teams, and detailed execution, which will include localisation and operational efforts.
3. Check all legal and regulatory requirements
A business can only succeed if it is flexible enough to work within local laws and regulatory guidelines. Your business will need to navigate and comply with all the domestic laws. Hiring a trustworthy local legal counsel for overseas business practices is advisable when reviewing legal and regulatory commitments. They will be able to help you identify hazards that may cause barriers for your business and advise you in any demanding situations. Do not skimp on the cost of engaging the services of an expert legal counsel, as it can save you in the long run.
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International business and trade depend on the quality of your team, and what is a successful international business if not for a reliable logistics team? How businesses manage their shipping has a direct correlation to customer satisfaction and operating costs. In fact, 96% of shoppers stated that they are more inclined to be returning customers should there be a positive delivery experience.
Grab this chance and expand your business by teaming up with the world’s leading express shipping provider, DHL Express. Focus on growing your business internationally and let us manage your logistical shipping and returns. Leverage our extensive logistics solutions and wide global network to ease your expansion efforts. Contact us to learn more.
