International Business Expansion Strategy
Business is going global. No matter your product, and no matter the size of your domestic market, can you afford to avoid going international with your product? Financial and economic sense says that, eventually, you need to look beyond your borders. This is where international business expansion comes into play.
Going global with an international business expansion strategy
The obvious benefit to marketing internationally is that you stand a chance at acquiring more business. In this post, we’re going to look at some ways you can bring your business to a worldwide audience.
Understand the impact on your business
In theory, more business means more money. In simple terms, that’s the aim of going global. In practice, you will need to take a look at the various ways in which international business expansion will affect your bottom line. Some key areas to examine, which all need to be accounted for both in terms of financing and time are:
- Working hours – do you have the staffing capabilities to expand
- International trading licences
- Tax regulations
- International bank accounts
As you put together your international business expansion strategy, it’s worth considering the costs of a service provider and/or consultant in your new target market who can manage the administrative tasks that are particular to the country. This will leave you free to address other areas of your strategy.
Define your goals
Good business sense says to set yourself short-, medium- and long-term goals, and build these into the strategy. Part of this might include a checklist for the above operational duties, while also choosing how best to manage expansion abroad.
Understand the culture of your new market
Culture, in the case of international business expansion, relates to that of your customers and of your potential employees, if you need any on-site. Culture relates to the language that is spoken and the dialect used, the average earnings of a worker in the country, and disposable income in your new target market.
Setting up an international office
Where you offer a service, a location in a new country allows for a more personal communicative position. Products can be shipped from your warehouse abroad, but you may find it is better to establish a local distribution center, especially if your international business expansion takes you to a new continent.
Ultimately, this might mean passing the savings onto your customers, rather than subjecting them to international shipping rates, which can have a positive effect on your sales for the year, as well as encouraging customers to spend more regularly if your product is the type that allows for multiple purchases.
Branding and marketing your business on a global level
One of the biggest decisions you will face is how to brand your company as part of your international business expansion strategy. Will you choose to rebrand for the new market, or maintain the name of your parent company? Are there any legal reasons why you might need to change the name? Perhaps your company name doesn’t translate well into the language of your new market.
Localization services can assist in establishing a greater understanding of your international market, taking language, education, social influences and more into account so you can focus on how best to market your product.
One of the key benefits of translation services in terms of international business expansion is that it allows your business message to be understood more easily even in a language you don’t speak while avoiding a faux pas in your marketing strategy.
Develop your international business expansion strategy over time
Research is vital before launching into a new marketplace. When introducing your products or services into a new environment, it is wise to do so one market at a time until you have planted roots. While it is tempting to open new stores in three new countries, even when you speak the same language as your target country – or you can avail of a translation service – you run the risk of expanding too quickly.
Addressing individual markets allows you to understand the process of international business expansion more clearly with each attempt – whether successful or not. As your first international market expands, you can begin preparing marketing materials and legal documents for further international business expansion as part of a long-term strategy to avoid burnout of your employees and to better manage your finances going forward.
The next steps in developing your international business expansion strategy
Understanding new markets and other languages is our business. When you’re ready to go global with your business, get in touch with us and we can explore the next steps in taking your message to an international level.