Going Global: 6 Steps to Developing Your Business into an International Company
After discussing going global for entrepreneurs and professionals and the necessary steps for building international careers, this week, we’re discussing going global for companies.
The world of business has never been more connected globally, thanks to the internet and the advancements in technology. With international payments and logistics made easy, even small- and medium-sized businesses have the chance to target international customers and grow their businesses overseas.
There’s a whole wide world out there with potential audiences for the products and services you have to offer. If you have stayed within your comfort zone in your local or national market, now it’s the perfect time to expand the borders of your business, and grow your company globally.
Setting up a business abroad could be challenging at first, but once your company is established, you can reap the rewards. Many companies aspire to take their businesses to an international audience. Not only can going international expand your talent pool, but it also allows you to diversify across different markets. Entering the international arena can also protect you against the risk of a decline in the domestic market and significantly improve your overall growth potential.
Before entering the global marketplace, you need to ask yourself lots of questions. This will help you clarify your ideas and set up your goals.
First, think if your business could benefit from internationalising its operations. Could you tap into new markets and take advantage of the many benefits of establishing your business abroad? If yes, where?
Are you planning to open a new branch or move your entire company abroad? Maybe you just want to export your goods or services? Or maybe you just need to open a small satellite office?
The answer to all these questions will determine the extent to which you need to expand your company overseas.
Narrowing down the best markets is the second step of your global growth which determines the markets that are most viable for what you offer. Besides searching online, attending trade fairs is one of the best ways to start your research and get an understanding of the market and competition in different countries. The next things to consider based on your business are the market size, cost efficiency, labour cost as well as resource supply, geographical constraints and legal regulations.
Is the target market familiar with the product or service you want to offer? If yes, how big is the market and how fierce is the competition? If you’re offering a new concept, your brand can become “the one” that offers that product or service, but on the flip side, you need to be prepared to invest time and money to create your consumer base.
If you’re considering entering a foreign market for the first time, plan your growth campaign for international expansion by preparing an international business plan to evaluate your needs and set your goals. This is essential to assess your readiness and commitment to grow internationally before you get started.
Plan a strategy to launch at the best time of the year and with the appropriate message based on the country you choose. This brings us to our next point:
One of the biggest differences between doing business domestically and internationally is the culture! To avoid making costly mistakes in international business, learn the business etiquette of your target country and behave accordingly. Prepare your messages and emails, and your website and social media content culturally appropriate and sensitive to the particular area you are in.
You must understand how to engage with your target audience. By adapting your content and social media to the local culture, you can engage with your target audience faster and in a way that they can understand your message.
Creating an emotional connection in a global context could be challenging. However, by using visuals and content that resonates with your target’s culture and its various nuances, you can have a lasting effect on them.
By collaborating with local experts, you can speed up your learning curve. Your local allies can give you advice about the local market, and how things work there, and warn you about the pitfalls.
Language barriers are the biggest issue that companies face during a global expansion. “60% of European companies are limited in foreign trade because of linguistic & intercultural barriers. And there’s a similar problem with English-speaking companies that want to expand in Europe.“
While doing business online with companies all over the world is very convenient, it can’t replace the face-to-face interactions which are necessary to build personal relationships and trust. By visiting each country where you plan to do business, you gain a better understanding of whom you are working with.
An interpreter can facilitate your communication in the initial phase when interacting with your local staff, vendors and partners, customers and the media. They can assist you also during your first meetings and negotiations for your initial set-up.
Your multilingual employees can be the bridge between you and your international clients and your local staff, however, that’s not feasible in the long run. You want to be able to put in your personality when doing business without the need of always having a middle person.
Consider hiring a translator and localisation specialist, that not only converts your content into the local language but also adapts it culturally. If you are planning to expand in multiple countries, create multiple versions of your website in different languages, and then use location-detection tools to convert your website to the local language automatically. Make sure to include some pictures of your local staff, or some pictures showing you with the local people sharing their customs with appreciation on your site.
Last but not least, if you want your business to be successful in a new country, you need to learn their language and culture, which is also a form of respect, and helps you engage with your target audience on a deeper level.
International business consultants can provide valuable help when setting up your business in a foreign country and help you save time. They can assist you with the legal requirements, as well as the bureaucratic procedure for setting up and getting the necessary licenses.
Your business consultant will help you identify and choose the best service provider for your business for billing and invoicing, different payment systems, tools and currency exchange. Nowadays so many companies provide online invoicing in various languages and currencies that also include the appropriate tax and fee guidelines for that particular country. You can also access affordable international credit card processing solutions that help you expand the type of payment options you want to offer to your customers. In case you need a local distributor, your business consultant can help you with that as well.
Next, you need to focus on your international marketing strategies. Based on the information you’ve gathered during your market research, you know what type of marketing mechanisms and platforms are most widely used in that country, including social media, and online advertising. Use blogs, forums, email marketing, and any other channels where you can get your marketing messages out in the most effective way possible.
Although it takes a considerable amount of time and effort to expand your business globally, now more than any other time, some available tools and strategies make it more convenient, secure, and affordable. Build your global empire slowly and enjoy every step, every new revenue stream, and every new global client, every new deal, one step, one country, at a time.
