How to Expand Your Business Internationally
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
It’s so incredibly important to do extensive research on the location where you want to expand into. Without conducting research on the location, consumer behaviour, culture and the language itself, your expansion could fail.
Tesco, for example, has found massive success in other countries, such as India. However, when attempting to enter the US market in 2007 as the sub-brand “Fresh and Easy”, the venture failed due to a lack of research into consumer behaviour.
You must also be aware of any social and cultural differences that can affect the way your potential customers may behave and react to your brand. Why? People are unlikely to purchase a product or service if they can’t understand what it is all about. So, speaking their language and understanding their culture is key to creating a respected brand.
That’s where transcreation comes in. It’s a holistic approach to translation that adapts to the local market while preserving the essence of your messaging and any subsequent content. The message remains the same, but the finer detail is precise to the locality. As such, we can be sure of creating content and marketing materials that will resonate with your target audience. What’s more, by translating your brands messaging and marketing materials into the language of the area you’re looking to expand into shows that you are really serious about that particular market. Find out more about transcreation here >
If you don’t take the time to understand your target audience you may end up losing business, potentially offend your customers and your whole project may struggle to get off the ground.
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 >
If you have any questions on this blog or the services we can provide to help you, contact us today.