Growth is inevitable in business. But it’s the amount of work you put in that determines in what direction you’ll grow. Running a successful business comes with responsibilities and a lot of decision-making.
It is not unusual for business owners to seek expansion, whether locally or internationally. However, business expansion requires planning and is not a swift process - it takes time to decide on where you want to take your business.
In order to avoid pitfalls and being as cost-effective as possible, there are several factors one must consider when asking yourself "where should I take my business next?". We’ll highlight these throughout this article. But first, let’s understand why business owners expand their businesses to begin with.
Why Do Businesses Go International?
Businesses expand to new countries for many reasons, but the main ones tend to be summarized three: a greater brand recognition, an increase in profit, and an expansion of operations to reduce costs.
Some other reasons include reaching out to investment opportunities, diversification, and in some cases, international expansions are motivated by favorable government incentives in your chosen country.
Are You Competing for Local Sales?
To solve this common challenge of competing for sales or patronage in business, entrepreneurs sort international expansion to generate more sales by reaching out to a broader customer base.
Taking Advantage of Emerging Markets
With technological advancements, new opportunities have appeared for countries that before did not have a chance to compete globally. This means that the purchasing power of many populations has improved, and regions that did not have internet access before are fully embracing digitalization now.
Taking your business to these countries gives you a head-start over your competition. You get to meet new customers, present a new solution with your product, and win a large share of the new market for yourself.
Tap into Productive Talents
Often, businesses and companies enjoy a productive workforce when they take their businesses overseas. This is especially significant in manufacturing and other large-scale production business where a large number of workers are required to speed things up and increase output.
Regardless of the scale and niche of your business, taking your business from where it is to another place requires planning and proper execution. Having considered these tips; it’s best to have a professional international marketing company to guide you in foreign markets.
6 Factors to Consider Before Expanding Your Business
Taking your business into a grander market is a complex process and requires special consideration. You must be in the know about the factors surrounding the new market you want to explore. Information about the target market, local trends, and competition will serve as a solid foundation and springboard to propel your business growth.
Scaling up your business and expanding your business across borders is not a walk in the park as often portrayed. It could be a daunting task and could cost you a fortune if you don’t equip yourself with the right information. Here is a list of boxes to check.
Define the purpose and value of expanding your business
If you are going to grow your business, then you should aim at getting it right. You should define your motives for taking your business overseas. Identify your short- and long-term rewards, research what opportunities are available in the market, and how you intend to bridge gaps with your products or services.
Adequate research and market analysis will form the core of your business expansion. If you can execute this phase correctly, you would have overcome a significant hurdle. This process will provide valuable information about your target market, the profitability of expansion, demographics, marketing strategy, and lots more.
Consider the Legal Requirements Involved
Depending on where you are taking your business, legal requirements vary from country to country, and you should do due diligence by finding out what is required of you to avoid unnecessary litigations and commercial risks.
Inquire about all legal documentation necessary in the host country. Be proactive in sorting legal backing in all you do, like creating commercial agreements, performing corporate services, licensing, compliance, and certifications.
Consider Cultural Factors
Culture is a diverse facet of human existence. Every culture is unique and distinct from the other. If you must succeed in a foreign business environment, you must put in efforts to try and understand the culture of the local consumers.
This will help a lot in marketing and advertising your brand. It also helps to package your brand and product in a way that will win the hearts of your target customers.
Consider the Economic Factors
The economic situation in any region determines the suitability of doing business in that country. You should have comprehensive knowledge of the economic landscape of the market you are getting into. Find out about the banking system, taxes, and financial policies, per capita income, supply and demand, social structure and lots more. This information will guide you on gauging the chances of your business surviving.
Consider Political Factors
Understanding the politics of an area will give you an edge and advantage on how to navigate through the intended market and not get caught in any government or legal crossfire.
Other important aspects and factors to consider include but are not limited to the stability of region - you wouldn’t want to be doing business in a warzone where your interests are not secured.
Also, look out for opportunities of forming profitable partnerships that will help you adapt and execute your expansion strategy.
Saving the Best for Last!
The list of factors is endless, and we could go on listing them, but we only have enough time to share the most important and feasible ideas. However, we cannot afford not to mention another major factor to consider before taking your business global.
Hire A Professional Localization Company
Localizing your business is an excellent investment to make while taking your business global. Localization services are specialized services tailored to create ample awareness and promote customer interaction with your brand.
Professional Localization companies often provide translation services, but that’s not all. They also provide excellent marketing services like marketing brochures, product leaflets, blogs, and website localization.
This way, you are sure of conveying your message in the language that your customers understand without compromising on the intended message. Get a multilingual marketing company to handle your campaigns, and you are set to get your business flying!