According to some research, 65% of businesses will fail in their first ten years. This rate can go even higher when you want to expand your business internationally.
If your company wants to expand internationally, you must devise a plan and an international strategy. Without a plan, you might dive into international markets without a clear vision of how to go about it.
Read this guide to have everything you need to start building an internationally-focused business strategy.
1. Do Your Research
When you have the right goals in mind, you can start looking at international markets where you can set your business up to succeed. You can cast a wider net by looking at a few markets to expand in.
When you’re entering foreign markets, you’ll want to do some research to understand the market. There are often government agencies that can help you understand the foreign market. You’ll also be able to read reports to see if your product or services would be a good match for that audience.
You’ll also want to understand how the foreign market works correctly. For example, you should attend a trade show or network in a foreign market to learn how that market works. When you understand more about the culture and the market, you’ll have an easier time growing your business in that new market.
If you need help figuring out where to start with this research, many companies can help you learn more about the market and successfully expand your business.
2. Foreign Governments
You’ll also want to consider foreign governments when considering expanding your business. The stability of a government and its authority will play a huge factor in how you manage your remote international business.
The government will also affect things like the currency exchange rates, which can be essential for bringing in a profit. You’ll also want to figure out if you have employment or immigration laws that you’ll need to consider when you have remote work employees.
You’ll also want to see if the government assistance programs will assist your business if you need help expanding in that new market. There may also be protection policies for new businesses entering a new market.
3. Identify Goals
When you identify goals, you’ll also be able to have a clear expansion plan. You’ll be able to develop short and long-term strategies and set goals for each stage of the process.
It will let you measure your success and understand how much each stage will cost. You should have a consultant or team to help you grow the business and make sure that you know what goals you’re trying to achieve.
Are you trying to reach customers, get brand awareness, or improve profits? If you’re trying to improve profits, what dollar amount are you trying to reach, and when you’re trying to get them?
Having this timeline and KPIs to measure your progress can help determine if your strategy is working or if you need to be flexible and adjust it.
Remember that creating these goals should be timely, relevant, attainable, measurable, and specific.
4. Create a Business Case
You’ll want to create a business case to respond to some of the challenges arising when you expand your business. You’ll want to include a market study to understand the market’s personality.
You’ll also want to determine the market’s financials and whether moving your business into that market makes sense.
You’ll also want to see if there are any market relationships that you can connect with. You can find guidance with them and engage in a local partnership. You could approach them and devise a business plan if you have any suppliers or clients.
5. Your Budget
Another thing you’ll need to consider is your budget or financial readiness. If your business is struggling financially, it might not be a good opportunity for you to grow your business right now.
You’ll have to consider paying a supply chain provider in the right currency. You may even have to pay fees for imports and exports as well. You’ll need to create a budget for your expansion and ensure that you won’t go bankrupt expanding into the new market.
You’ll also need to build the proper infrastructure to follow the regional business policies. You’ll also have to follow their tax rules, and hiring an expert in international taxes and markets can benefit your business.
6. Culture Management
Going global can be very big for your company, and you can’t expect a business to be ready with just a strategy. You’ll also need to have a plan for how this will affect your employees and culture.
You’ll also cross to other languages and cultures when you cross over to different markets. If you’re staying in one office, you’ll also need to set new communication standards for your partners.
You’ll need to implement new policies if you’re expanding your business physically and won’t hire people for remote work. This can be challenging, especially if employees feel like another country’s employees are getting benefits that they’re not.
You’ll also want to evaluate if you have the right technology to allow you to operate your business internationally. Thankfully, outsourcing a lot of this responsibility can be helpful, but you’ll need to include it in your plan.
Discover More Things to Consider When Developing an International Strategy
These are only a few things to consider when developing an international strategy, but there are many other factors to incorporate.
It can be exhausting to remember all these factors, but we’re here to help guide you to success.
If you need help developing your international strategy, check out our website to learn how we can help you!