If you’re planning on expanding your business internationally, there are a few factors you need to take into consideration. What are the challenges of international business? What location do you want to expand to? And is there enough potential talent in the area?
In order to help you go through the process as smoothly as possible, we have compiled a list of things you need to consider when going international.
Possible Reasons for international business expansion
Possible reasons for international expansion can range from a gap in the market to a local increase in demand for your service or product. Whatever reason you have, in every situation, it’s important to base your decision on researched facts. You need to look at the market you want to serve and listen to its wants and needs.
Preparing for international business expansion
Every major business decision has its hurdles. Here are the things you should prepare for before expanding your business internationally.
Regulatory and compliance requirements
Every country has its own tax codes, packaging standards, business regulations, and banking system. Therefore, it can take time and effort to complete the necessary paperwork for compliance and setting up a new corporation. Before you start expanding, you should often research everything there is to know about the local market you are aiming for to be fully prepared when expanding internationally.
Language and cultural differences
Expanding overseas comes with cultural and language barriers. Not understanding the key differences in behaviours, beliefs, and values can lead to a culture clash. You can get a good grip on the local culture by hiring bilingual and native staff members or partners. They know the market to a T. This will give your team the necessary insights into how the culture of a country affects the market for consumer goods and services.
Market strategy
Products and services need to be suited for the market you are expanding to. That means packaging, language instructions, marketing materials, etc. You can create a market strategy based on the research you have done about the regional or local market.
Local competition
It may require effort to persuade foreign consumers to trust and buy your brand when a similar product is made in their home country. You can contemplate why consumers would buy from you over the local competition and ask yourself, Can I penetrate the market under profitable circumstances?
The top 5 best practices for international expansion
If you’ve decided that you’re ready to expand your business internationally, here are five steps we recommend you follow.
1. Find the right local partners and team
It is essential to establish a team that understands the local market and language to be successful. Working with a local team and local partners makes it easier to deal with the regulations of the market you want to expand to. They also help to communicate your company’s unique selling points in a way that is meaningful to the local market.
2. Do the necessary market research
You should often consider all possible scenarios before making major business decisions—especially during international expansion. It’s always wise to do your market research or even spend time in the market you are aiming for. The information you receive is crucial to developing your strategic plan moving forward and getting to know the market and the competition by hand.
3. Be willing to change direction
With every new market you enter come new challenges. Being accepting, adaptive, and prepared for any bumps in the road is the way to success. Always make sure your product or service meets local consumer demand.
4. Set up your local customer support team
Once you have stepped into a new market, you will have a new customer base to support. Like in any market, consumers will want immediate support. It will be vital to set up a local customer support system and team.
5. Create the right infrastructure
It is vital to create the right infrastructure to ensure the smooth running of all business operations. Here are four important questions to answer that will help you achieve this:
- Do you have your local management team in order and can they deliver your market strategy?
- Is your product or service localized?
- Are your distribution channels in order?
- Is your team ready to handle customer support?
How to do international business?
Having a good business in one country may not ensure that international expansion will be successful. Every company is different, and the market is always changing. In addition, understanding international business rules and regulations can be complicated. In order to expand successfully, you can hire experienced professionals who are well-versed in international business law and customs.
Relocating talent
During an international expansion, relocating your employees is an important part of the process. A well-organized relocation can increase productivity, efficiency, and profitability. In most cases, a successful relocation will require thorough planning and preparation with input from all parties involved.
Are you planning to expand your business to the Netherlands and need relocation support? Here at Jimble Destination Services Provider, we provide support at every step of your relocation journey. Contact us to talk to one of our specialists.
