Expanding business abroad is a multifaceted, demanding process. But, if done right, it can reap incredible results, expanding your clientele, making your brand independent from your home country’s sales cycles and market fluctuations, and extending your products’ market life.
Your first thought might be a bordering nation, which is reasonable, since distribution costs might be relatively low, and cultural exchange between your home country and this prospect might make marketing, sales, and creating a new working environment that stands by your brand, easy.
But not so fast.
While these factors are, undoubtedly, very important, successful expansion relies on throughout market analysis.
Besides factors such as legislation, infrastructure and general cultural climate (which are best compiled and evaluated with the help of Analytic Models such as PESTEL), your main goal should be understanding if there is a gap between offer and demand that your products could fit into.
Once you know that’s the case, it’s time to evaluate where you stand, compared to your competitors: Analyze your comparative weaknesses and strengths, review and reaffirm your value proposition, have a clear picture of who your early adopters would be.
Garner all the information you can from government websites for foreign investors, third-party researcher & consulting firms (all the better if they’re specialized in your industry), keep up with the financial news of your target country, and network with potential allies from your target country/region – and with potential staff.
Also Read: 4 ways to know when its time to move on from an idea, project, or goal
Even with a financial situation that seems to invite growth, a clear market gap, an extraordinary workforce, investment opportunities, a comparatively strong offering, there’s something you shouldn’t forget about: the role cultural differences might have. However subtle, they exist, and they might make or break your expansion.
Language and culture are as important as market conditions and regulation
Advertising might seem like an afterthought, something to explore later on when you’ve acquired some basic understanding of your market. But actually, as Tri Nguyen, CEO of Network Capital Funding Corporation recently explained in an interview:
“When you are thinking about expanding into new areas, the first thing you need to do is to determine how to specialize your advertising for your new market. If you can’t convey the benefits of your product or service to residents of a new region, you’re going to struggle to make it. Be honest about flaws and strengths as you consider the message you will be conveying to a new area.”
Language is your greatest vehicle to address, engage and establish strong bonds with your new target audience. Be mindful of linguistic differences, and don’t hesitate to look for professional assistance.
Since 87 per cent of non-English speakers won’t give their time or attention to a website that’s not in their native language, properly translating and adapting (or as it’s called, “localizing”) your brand, website and products is a must.
In an interview about the Brazilian marketing agency’s expansion plan, RD’s CEO and founder, Eric Santos addressed the need to be versatile and open to the specific needs of international clients:
“Companies expanding internationally also tend to shoehorn clients into their model, by forcing them to pay with international credit cards, offering contracts and customer service in English only – they basically say you have to deal with all that. This is the way most companies behave, especially American, when they enter a market like Brazil”.
But language and culture aren’t important just for marketing or sales purposes. Establishing, operating and growing in a new location will involve processes deeply entangled with language, from presenting documentation in the State’s official language to negotiating with potential partners. Make sure you can rely on a localization team, a legal translation agency and eventually, a specialized business interpreter.
Should you go global?
As explained above, going global is a multidimensional process, requiring research, planning, external assistance, patience and commitment.
Also Read: 3 easy ways for startups to attract global customers
For mid-size or small size businesses already thriving in rich, large and diverse markets (such as that of the United States), there might be plenty of room to continue growing locally. But expanding a business beyond its original borders unleashes an even greater potential for further growth.
In the end, 96 per cent of consumers live outside the United States.
Going global might be complicated, but it’s worth it.
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Image Credit: Kyle Glenn
This article was first published on October 12, 2019
The post Ready for expansion? here’s how to decide where to take your business appeared first on e27.