Expanding your business internationally has the potential to grow your business exponentially. On the other hand, if the correct precautions aren’t taken, you can lose a great deal of time, money and resource. In addition to this, if your business gets a bad reputation in a territory because you’ve overlooked the culture, then it will be challenging to enter that market again without some serious friction.
As such, in this blog, we’ll look at some of the key elements you should consider when putting together a plan to expand your business internationally.
Research is vital to your success
Expanding into another country is not cheap. It will almost always involve high levels of effort, time and money. You’ll likely need everything from cash, resource and possibly a new business premises, depending on the nature of your niche. Your expansion may even provide you with an opportunity to source investment from other third parties, who also have connections and can provide you with the support you need to succeed.
Capital is king
Expanding into another country is not cheap. It will almost always involve high levels of effort, time and money. You’ll likely need everything from cash, resource and possibly a new business premises, depending on the nature of your niche. Your expansion may even provide you with an opportunity to source investment from other third parties, who also have connections and can provide you with the support you need to succeed.
Logistics matter
If you’re moving any assets overseas, you’ll need to consider the logistics. Think carefully about imports and exports as there are specific regulations for every country, which means there will be different taxes to consider.
Do you have an EORI number? An EORI number (Economic Operator Registration and Identification Number) is a unique code given to you which is used to track information when importing and exporting within the EU. If you haven’t got one already, you’ll need to obtain one. Do note though, if your business is part of a bigger group, it is the umbrella company that is required to obtain an EORI number.
Visualise your success
Once you have done all your research it is time to visualise your plan. A PESTLE Analysis’ and SMART targets are a good place to start.
SMART targets are a great way to set out goals that are Specific, Measurable, Achievable, Realistic and Timely. They ensure objectives can be met and everyone within the business is aware of the targets and the future direction of the company.
Carrying out a PESTLE analysis is another useful business tool by which you can assess external factors that may affect how your business functions in another country. It takes into consideration Political, Economic, Social, Technological, Legal and Environmental factors of the country and how it might impact your business.
Takeaways
Any significant business activity requires careful consideration and planning – and make no mistake; expanding into foreign markets is a very considerable business activity.
By methodically working through the steps of research, capital, logistics and preparation, you have a much better opportunity to make it work for your business in overseas markets.
For more information, check out our EXPORT GUIDE >
