5 Steps To Expand Your Business Globally!!

After the global economic downturn several years ago, many business owners might assume the timing couldn’t be worse to expand globally. In my opinion, that is not the case. There are good opportunities for many business models in foreign markets. The trick is to identify that particular, underserved niche that is a match for your business, and go after it.

With solid investigation, effective planning, and resourceful, creative execution, I believe many companies can find success in the global marketplace today. Some of the steps we recommend include:

1. Know your company and your industry.

Before you can determine if your products and/or services are a fit for the global marketplace, you should have a clear picture of where your company (and the industry in which it operates) is today, and where it will be (as well as where you want it to be) tomorrow. Don’t forget to consider supply constraints and other factors that might change your product or service lines later.

For example, you could be selling a million widgets in America and be certain that they would be a big hit in Europe. However, if you are planning a major redesign, or foresee having problems obtaining raw materials in the future, you may need to rethink your strategy. Or, if technological advances in your industry might make a product obsolete in five or even 10 years, foreign expansion might not be prudent. (Alternately, there are likely underdeveloped countries that might welcome a product that the major industrialized nations no longer need or use.)

2. Determine how your business model translates. 

There are numerous ways for companies to enter foreign markets, including exporting, importing, joint ventures, licensing and off-shore production. For firms that produce, manufacture or resell goods, exporting is usually the easiest and least risky method. If you are interested in exporting, don’t overlook indirect exporting, where an intermediary familiar with (and approved by the government to conduct) business in the target country handles the actual transfer of goods

3. Identify and investigate target markets. 

As with starting a business in the U.S., you need to find a market that is hungry for what you have to offer. However, the issue isn’t just demand. You must consider all the factors, positive and negative, that impact your ability to penetrate a market. Remember those widgets we talked about selling in Europe? You might need to make adjustments, such as changing the manufacturing materials to meet environmental requirements in certain countries. Or, local content initiatives like those mentioned earlier might require you to refine your manufacturing, distribution or sales model.

4. Develop a business plan.

The business plan you created when you opened your firm, and any subsequent plans you have made for operating and/or expanding domestically, won’t translate directly to foreign markets. You may be able to adapt it, or you may need a new plan entirely. There are many issues to consider, including:

• Potential markets/sources/customers.
• Import/export pricing strategies.
• Initial financing streams and anticipated revenues.
• Additional costs (e.g. marketing; shipping; inventory storage; storefront; travel).
• Legal, regulatory and licensure requirements.
• Potential partnership or investment opportunities, if you are interested.
• Sales model (Internet or location-based).

5. Seek Seek advice and assistance.

I wish I could hand you a magic wand that would ensure success, but no such thing exists. Every company and market is different. Fortunately, the U.S. government, as well as many state and local governments and business-incubator groups, expends a considerable amount of time and energy helping businesses―in some cases, specifically resource-strapped, small and medium-sized businesses (SMBs)―penetrate foreign markets.