Making your company go international can be a daunting task. But with the proper preparation and planning, your company can make a successful transition and grow exponentially. Follow these nine tips to help make your company go international!
1. Do your research
Before expanding your business into new international markets, it’s essential to do your research. You need to understand the country you’re targeting, its culture, and its business environment. Successful CEO Dennis Bonnen says this will help you make informed decisions about whether or not it’s the right market for your company and how best to enter it. Researching laws and regulations for a product or service is also crucial to ensure compliance in the new market.
2. Choose the right country
Not all countries are equally attractive to international businesses. When choosing a target market, consider factors such as the size of the market, its growth potential, political stability, and infrastructure.
Apple is a prime example of a company that had a positive experience expanding internationally. The company was met with overwhelming success when it entered China in the early 2000s. Apple’s products were well-received by Chinese consumers, and the company quickly became one of the top smartphone brands in the country. Today, Apple’s revenue from Greater China is more than double what it was five years ago.
3. Create a business plan
Once you’ve decided to expand your business into new international markets, creating a detailed business plan is next. This should include your goals and objectives for entering the market and a marketing and sales strategy. Your business plan should also outline the necessary steps to establish operations in the new country.
4. Register your company
In most cases, you’ll need to register your company in the country you’re expanding into before you can start doing business there. When developing your business into new international markets, Dennis Bonnen explains this is where it’s vital to have the help of professional advisors. This includes lawyers who can help with the registration process and accountants and financial advisors who can help you with tax and compliance issues.
5. Get a local partner
Having a local partner can be extremely helpful when expanding your business into a new country. They can provide valuable insights into the local market and help you navigate the often-complex bureaucracy. They can also introduce you to key contacts and help with marketing and sales.
One company that successfully used a local partner when expanding internationally is Coca-Cola. In the early 1990s, the company was looking to expand its operations into India. At the time, the Indian market was a difficult one to break into due to the country’s complex regulatory environment and a strong preference for local brands. To overcome these challenges, Coca-Cola partnered with Hindustan Unilever, one of India’s leading consumer goods companies. This partnership helped Coca-Cola navigate the Indian market and establish a successful presence there.
6. Learn the language and culture
When expanding your business into new international markets, learning about the local language and culture is essential. You’ll better understand the market and connect with consumers. It can also be helpful when it comes to marketing and advertising. Emerging yourself into the culture is also a sign of respect to the people in that country.
There are lots of ways to learn about a new culture and language. One way is to take classes or participate in cultural exchange programs. You can also read books, watch films, and listen to music from the target country. Taking language classes is also a great suggestion from Dennis Bonnen.
7. Hire local employees
When expanding your business into new international markets, hiring local employees to run the day-to-day operations is important. They can provide valuable insights into the local market and help you connect with consumers. They can also help with marketing and sales. According to a study by the Harvard Business Review, companies that hire local employees are more likely to be successful in new markets than those that don’t.
8. Manage taxes and compliance
When expanding your business into new markets, you need to be aware of each country’s different tax and compliance requirements. Failure to comply with these regulations can result in significant penalties. This is where your professional advisors can help. They can ensure that you are compliant with all the relevant regulations.
9. Be patient
When expanding your business into new international markets, patience is important. Adjusting to the new market and seeing results can take time. Don’t be discouraged if you don’t see immediate success. Your business will eventually find its footing in the new market with time and patience.
If the expansion isn’t immediately successful, consider bringing in a new management team with experience in the local market. This can help you better understand the market and make the necessary adjustments to find success. You can also reach out to business associations or chambers of commerce in the target country for help and advice.
Final Thoughts
Expanding your business into new international markets can be a daunting task. But with the right preparation and planning, your company can make a successful transition and grow exponentially.
