If you run a small to medium business and you have aspirations to take it global but don’t know how, here are a few things to consider.
Know your company and your industry.
Before you can determine if your products and/or services are a fit for the global marketplace, you should have a clear picture of where your company (and the industry in which it operates) is today, and where it will be. Don’t forget to consider supply constraints and other factors that might change your product or service lines later.
Develop a business plan.
The business plan you created when you opened your firm, and any other plans you have made for operating and expanding domestically, won’t translate directly to foreign markets. You may be able to adapt it, or you may need a new plan entirely. There are many issues to consider, including:
Import/export pricing strategies, additional costs (e.g. marketing; shipping; inventory storage), and legal, regulatory and licensure requirements.
Identify target markets.
You need to find a market that is hungry for what you have to offer. However, the issue isn’t just demand. You must consider all the factors, positive and negative, that impacts your ability to penetrate a market. You might need to make adjustments, such as changing the manufacturing materials to meet environmental requirements in certain countries. Or, local content initiatives like those mentioned earlier might require you to refine your manufacturing, distribution or sales model.
Secure international shipping
If your business in anyway ships products, then to go global you need to make sure you have a reliable courier service that can deliver your products around the world efficiently and for a competitive price. This is a really important step as if you have a great product that cannot reach your customers on time then it is pretty much worthless and this could really hamper your international growth for your company. Also if you cannot find a cheap means of international delivery your profit margins could be squeezed too tight to succeed.
Seek advice and assistance.
Every company and market is different, many local governments expends a considerable amount of time and energy helping businesses. In some cases, specifically resource-strapped, small and medium-sized businesses to aid to penetrate foreign markets. Don’t be afraid to ask for help to both your local government and other businesses.
