If you’ve decided that it’s about time you expanded your
business in another country, you shouldn’t treat this as simply duplicating
what has been done in your own country. Several factors play an important role
in the success of a business overseas – culture, economy, market, etc. It is
also crucial for a business to have a dedicated resource for the development
and expansion of the business in a certain region.
Needless to say, going global is a huge step for any
company, and it could be very expensive also, especially if there is no
concrete strategy in place. Thus, as a business owner, you will have to be
ready to start up a business again, while taking into consideration the
legalities, local operations, and local marketing involved.
Below are the 10 steps for planning a business expansion
that will help make your international transition as smooth as possible:
1. Decide on which country you would like to expand and take
the time to really know its market and culture.
2. You have to visit the country so that you may be able to
evaluate the areas and eventually decide where you can develop your business.
3. Assess the current competition. Is the market very
competitive? If so, how much? What is the market share of the competition?
4. Perform a SWOT analysis so you will be able to determine
your areas of weaknesses and your strengths. What steps are you going to take
to address your weaknesses? Can they jeopardize your business and all your
other investments? It is important that you be able to fix your weaknesses
before you even enter the new market. This way, you will avoid making costly
mistakes that may even ruin your brand reputation.
5. Determine the size of your potential market. Is it huge
enough? How are you going to grow it?
6. Pay attention to the demographics within your area of
choice. Know the population density, disposable income, and economic growth.
Does the local area have the ability to support your business? Will there be
enough manpower?
7. Does the service or product you are to offer suit their
culture? You’ve got to be ready to make slight changes to your product and
marketing just to make sure they fit in with the local culture.
8. How do the people in the area approach business? What
happens in an ordinary working day? What is their suitable clothing?
9. You also need to determine if you have an existing system
or infrastructure that will enable you to deliver your product. For instance,
will you be able to provide technical support?
10. Finally, you have to know if it’s going to be possible
for you to replicate your existing business model. This is a complicated
process, for sure, and so working with a business consulting agency may be necessary.
