International trade or “going global” is the new trend for business owners seeking growth. Being a successful corporation in one’s own land is never enough, so many are taking risks in expanding internationally.
To keep growing, you need to know how to have target customers and deliver the products to them. For instance, if you are an Amazon retailer, you can use FBABEE – Amazon FBA Freight Forwarder Based in China to help you manage your inventory and rapidly deliver your products from China to Amazon.
There are many things that you need to consider when you plan to go global. Here are some tips to help you successfully expand your business beyond your borders:
- Conduct a feasibility study on your target locality.
Before you start expanding, analyze how your product will sell in the targeted market. You should conduct SWOT analysis, gap analysis against local products similar to yours, and personally visit the foreign country you are trying to target. Take your time in doing these things because the result will be your basis to either continue or stop your venture.
Market research your product by knowing if it is familiar or popular within that place. If you think your goods does not have future market potential in that foreign market, then choose other markets.
- Learn the culture and language.
After having a likely target place, you should learn about their culture and language as you will be temporarily staying in that country for your startup phase. Doing business abroad is different as states have various business cultures and practices.
Moreover, if potential partners know you have time to learn their language, they will probably interpret it as respect to them. If you build up trust with them, they will likely invest in your products or company.
Learning their culture will also help you build a relationship with local businesses. The benefit of it is knowing how to market your products to them based from their known marketing strategy.
- Develop an international business plan.
Every market varies from one place to another because of cultural, governmental, economic and market conditions. Therefore, do not assume that your business strategy and plans in your land will become effective in a foreign area. Plan your corporate strategy according to your target’s conditions.
Lack of plan in any business type, whether small or larger business, will create many problems and may even cause failure to your business. To avoid this, you should set up, define and evaluate the following to assess your readiness:
- Short to long-term goals, objectives, and strategy – it should be reasonable to size up development and cost/benefits.
- Tactical project plan – to assess if it can be done timely
- Business model and structure, whether to have an independent company, sales office, or branch
- Financial aspects – a top-down weekly, quarterly and annual budget to have real-time and actual budget reporting
- Hire the right experts for your team
Hiring experts are not enough; you should hire the right experts and placing them in the right position. Expertise does matter a lot, but you should also hire an expert with passion and dedication for your company.
Your staff should not be composed mainly of teams from your parent company nor a pure local group. It should have both domestic and local teams, especially during the startup phase.
Outsourcing bilingual staff can give you the upper hand because not only do they know the local language but they are also culturally engaged in the local market. You need to be able to market your products in the locality, and to do this means hiring bilingual staff who will translate your company to the local market.
- Prepare your organization and product readiness
After your gap analysis, make your company and product available in the market. Your company must have firm rules and regulations to monitor if your employees are applying the proper market strategy in working towards your goals and objectives.
You should also comply with the local requirements with regards to your company’s rules, regulations, benefit, and compensation programs. Moreover, your company should be technologically updated by hiring local information technology infrastructure that meets with your domestic system.
With regards to your products, comply with the local government and industry regulations; pay attention to the localization of your products, how it is translated in the local language, and establish patent and trademark review. To sell your products, make a local supply and distribution team.
Also, a detailed sales strategy, marketing programs, branding, and pricing must be established. Prices should correspond to the local economic environment as to entice local customers.
Generally speaking, trading in a foreign land is challenging but attainable despite its difficulties. With a proper plan, you’re good to go; with proper execution, you can achieve international growth. Thus, a careful understanding of the local market before setting up your business venture will help minimize the risk of failure.