Hej. Bon jour. Ni hao. Namaste. Howdy.
As you’ve no doubt noticed as the holiday approach and we discover neighboring cultures, as the web grows the world gets smaller. In the business world today it’s not uncommon for startups to have an international presence – often with 100% of their market outside the “home” country.
Not too long ago this would have been unheard of (think seriously pre-historic times, such as circa 2010). Way, way back then only businesses with the most resources and connections could even consider tapping into markets beyond their native soil. It was just too expensive and time-consuming.
Not so today.
The fact is, if you’re limiting your reach to your local county then you’re only scratching the surface of what’s possible. As markets such as China and India (in particular) expand at dramatic rates, your business has many fruitful prospects well within reach. If you pass on these opportunities, quite frankly you’re leaving money on the table. If you’re looking to go beyond the ordinary, then it’s time to break the status quo and think globally.
Naturally the type of business you’re in has a major say in global expansion. If you’re a dry cleaner or you manufacture a physical product (especially low cost items that can incur high shipping rates per transaction), you may want to think twice about going international. But for many burgeoning startups and small businesses, especially ones with software and cloud-based offerings, the time is right to broaden your horizons.
As you decide if international expansion is right for you, here are 5 tips for making smart decisions.
1. Keep the home fires burning first.
The biggest mistake a startup (or any business, really) can make is to over-commit resources and drop the ball in your own home markets. Your core business is more than likely at home, and by spreading yourself too thin you risk losing the traction you’ve made. Naturally you can hire freelancers to lend a hand and keep your own team focused on your country. Some may argue that you should ensure your business is 100% rock solid in your own country before even thinking of expanding, but this isn’t necessarily the case today. You should try to work all the major kinks out of your business first though, as it’s easier to make adjustments at home then across the globe.
2. Toss your current business plan out the window.
Truth be told, what works in your own backyard will have little to do with your success abroad. For example, a distribution strategy that’s effective in South Africa may not be so fruitful in South Korea. What makes this world so wonderful is that every country has its own unique culture. To thrive globally you need to revamp how you approach markets, including localizing your messaging and approach. A great place to start is finding a brand strategist with deep roots in the area you’re targeting. They can help you position your business for success. And naturally cell phones are huge in every country today, so it’s a good idea to focus on how to create a mobile app to communicate internationally.
3. Do your homework.
Just because your website is getting a few hits from Japan doesn’t mean the country is ready to embrace you as their own. You need to study diligently to understand the many complex variables associated with expanding into a certain country. As you’ll find out, “today” means something much different in every corner of the globe. You’ll also find that some countries are much easier for you to enter than others (think language barriers, tax regulations and bureaucratic red tape to begin with). Where you’re located has a lot to say in this matter. Naturally, doing successful marketing research will help steer you in the right direction. A lawyer with international experience in your target country is also paramount to well-laid plans.
4. Go slowly, slowly, s – l – o – w – l – y.
Taking baby steps is a good idea when moving into new global markets. There’s no need to hurry in and start distributing your product right away. These countries have been there for years, and they’ll continue to be there as you slow down, stay flexible, and adapt to situations you hadn’t anticipated.
5. Make the right connections.
Bottom line: You can’t do it alone. You’ll need to set up business relationships with locals, hire translators and work with government officials. Just be sure to deal with quality individuals you can trust today and tomorrow. That’s one reason why businesses choose online work platforms when expanding internationally, as you can check the ratings and reviews of freelancers to ensure they have a good track record.
Diligence: Your passport to success in foreign lands.
Again, there’s no substitute for solid research and planning. You should only act after you have immersed yourself in every aspect of a country’s culture and business practices. Before you venture into a new market make sure you build a great team and leave no stone unturned. True, it’s a lot of work, but the rewards can be plenty. So whether you’re looking for some love in the North Pole or South America, it all begins with partnering with the right professionals.
So Held og lykke. Buena suerte. Bedrud. Sterkte. Good luck, and just think of all that possible waiting outside of your own backyard.