For many businesses, getting into the global marketplace is a crucial goal.
But, knowing when the time is right to make your move can be tough. Here are several questions you need to ask yourself before you can even consider overseas expansion.
How robust is your current market?
Your current business doesn’t have to be breaking world records in takings to move abroad. But, it does need to be stable and have a robust base to work from.
There are lots of things to consider. Are your profits high enough to take on the risky move abroad, and if you head up the move, who is going to do your job in your absence?
Do you have the market potential?
There has to be more than just a passing interest in your product to make it a wise move to go abroad. It’s important to understand that fads and trends happen in all industries.
Just because your product sells well at the moment, it doesn’t mean it will in six months time. If you only have one product on offer, ther’’s no protection.
You need to explore the marketplace a lot more thoroughly and have some good ideas of what else you can bring to the area.
Can I afford premises?
You will need business locations, of course. But that’s not all. You will also need accommodation for your staff to stay in while they oversee the move.
You could rent, or it might be worth your while buying properties for your employees. Try and save some cash and get them as cheap as possible.
You might find that if you get in early with some new construction projects, they will give you a significant discount.
You will need your team out there to watch over the transitional period at least, so it’s important they are comfortable.
Do I have local contacts?
It isn’t impossible to move into a new marketplace on the other side of the world without a contact, but it is tough. In the vast majority of cases, it’s essential to have an international or local partner who knows the landscape.
Now, this isn’t something you can rush into, either. You should expect to take a minimum of a year to go through due diligence before choosing your future partner.
Do I know local customs and regulations?
There are two vital things to think about when you start doing business in other countries. The first is that you tick off all the boxes about regulations.
This is where your local contact will come in handy. However, don’t forget about the second issue – local customs. People have different ways of buying all over the world, and if you break from that norm, you will lose sales.
And, in some cases, you could cause offence. Make sure you are aware of your local customs long before you make your way over to the new territory.
So, there you go. There are more things to think about, of course. But if you can answer these questions in a positive way, it’s a good sign you might make your move a success. Good luck!
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