As a business owner, you’re probably super-focused on expanding your business in your native country. But, if you simultaneously search for opportunities in global markets, your business can benefit in various ways. However, a company gets only one opportunity to make a strong first impression on a new, unexplored market. Make sure you have all the necessary contingencies in place before your entry.
To understand how/why certain businesses succeed in entering global markets, check out LESSO Project Cases. LESSO has established itself in several markets across the globe. Insights from their scientific researchers can be invaluable for your business expansion goals. But, why expand your business in the first place?
Well, firstly, you can reduce your dependence on just one market and extend the sales life of your existing products. By doing so, your business can have limitless potential for market expansion and long-term growth. Plus, now’s the perfect time for businesses to expand. Despite the global pandemic, the number of new business applications across the world has increased significantly.
- In the US, 4.4 million new business applications were filed in 2020 and 5.4 million in 2021. That’s two back-to-back record-breaking figures.
- Other countries like the UK, Japan, France, India, and Germany also experienced similar rises in new businesses from 2019-2021.
Seeking entry into global markets is challenging. The resources, time, and effort required to take a business global don’t come with guarantees of success. However, several businesses have taken the jump into global markets.
Here are six steps these successful, global businesses took to achieve their expansion goals. Apply these steps to your global business expansion plans –
1. Pick a Market
There are 190+ countries in the world. Which country offers the best market for your business? There are two ways to determine this –
Select countries with similar market conditions, common language, and similar audience groups. For example, US companies first look to expand to other Westernized, English-speaking countries like Australia, New Zealand, etc.
Also, consider the countries where the demand for the products/services your business sells is the highest. For example, the demand for automotive parts is very high in car manufacturing countries like Japan and Germany.
2. Research the Markets You Want to Enter
Surprisingly, many big corporations fail to take this step before trying to expand into international markets. Unless you have the necessary data points about your prospective market, your expansion efforts will be poorly planned.
- Consult closely with professionals who closely understand your target market in relation to the products/services you’re selling.
- Assess the current state of the global market for your industry. Time your move accordingly. For example, sellers of 5G devices should only focus on countries that currently have 5G technology.
- Take due diligence steps like performing a SWOT analysis, market segmentation analysis, etc.
- Understand how you may have to adapt your product designs to suit target audiences.
- Understand the regional marketing methodologies that have a track record of success.
Gain as many deep insights about the market you’re planning to enter. Then, use the research data to set realistic short and long-term objectives.
3. Choose Your Business Structure
You can take your business into global markets in various ways. You can set up partnerships with companies in the markets you’re targeting. These companies can give your business indirect access to your target customers.
You can also open your own corporation overseas. These types of business structures are more complex and require a lot of cooperation with the local government agencies. That’s why most businesses prefer entering into strategic global partnerships first.
The business structure you implement in one country may not work in others. Either way – your business expansion goals need to be structured. Consider your goals and budget to select the right business structure for your target market.
4. Team Up with Local Professionals from Your Industry
Bringing local experts into your business expansion plans is critical for success. These professionals know the local audiences. Their experience will help accelerate the adoption process of your business.
Your native workers will learn from them and apply their insights to their strategies. You’ll also need to train the local professionals about your company’s values and work ethics.
5. Start Localizing Your Brand in the Target Market
Adopting a multi-lingual strategy to serve your target consumers more efficiently. Translate your website content and overseas promotional materials. Make sure your brand communications are culturally sensitive.
6. Become Legally and Financially Ready to Enter the Market
Make sure your team is ready to handle a new market’s legal, accounting, and tax challenges. Create business policies and procedures that are compatible with your target market’s standards and customs.
Obtaining legal and financial readiness for a new market is probably the most difficult step. You’ll have to create and oversee countless documents drafted in multiple languages. But, this step is critical for laying the foundation for your business before your entrance.
Use this six-step strategy to kickstart your company’s global expansion plans!