With sluggish growth domestically, especially in developed countries such as the United States, most companies are leveraging global business expansion as a crucial strategic pillar. However, a global expansion strategy has its qualms, risks, and obstacles. As an entrepreneur, you may be wondering if growing your business internationally exposes it to committed investors or shareholders. Several capital market studies indicate that shareholders tend to reward firms that experience a fast-paced growth outside its home country. Below are some of the steps for expanding your business globally.
- Forge meaningful relationships with influencers in the foreign markets
Before proceeding with your expansion plan, identify the influencers in your prospective market and strive to build alliances with them. When you are finding these influencers, go for the bigwigs. Ensure that you have developed a strong network and utilize it either create your ideas or source for new ideas. As the relationship continues to thrive, determine if your influencers will become your associates in your expansion plan or they will be your mentors, who will enlighten you on how to trade on a global scene.
- Develop a long-standing financial plan
Evaluate your capital and come up with a strategic financial plan to increase the likelihood of your business being financially successful in the foreign markets. Ensure you have enough initial capital before executing your expansion plan. Remember, profits do not come right away after you have invested globally. Therefore, Patience is the key virtue when it comes to increasing the addressable market for your business.
- Conduct a thorough market research
If you do not have the necessary resources and expertise to carry out a comprehensive market research, seek the services of a qualified market-research firm. Just because other businesses are making immense profits from the market of your interest, does not necessarily mean the same will apply to your business. At times, your prospective market may not have the client you are targeting. With an intensive market research, you will establish if your business will get a better reception or if a market for your services is available.
- Involve your workers
Encourage team spirit within your workplace by ensuring your employees are conversant with your expansion plans and their opinions are considered. Your current employees will help in training new ones and developing new processes. Since your employees are the cornerstone to the success of your business, you should always keep them in the loop in all the stages of expanding your business globally.
- Come up with innovative solutions to solve cultural challenges and language barriers
Cultural differences are perhaps one of the most challenging obstacles you are likely to encounter during your efforts to enter foreign markets. You will need to modify your branding and marketing styles to suit the needs of the consumers. Additionally, you will have to set up an office that aligns with the culture of the foreign nation. In some countries, there is a sharp difference between work and life balance while in other countries work and personal lives tend to cross paths.
Mastering the foreign language is a tool you can leverage to transform your business into an industry leader. The only way to deal with the challenge of the language barrier is learning the foreign language – this confirms that you respect other cultures. It is also an indication of having the desire to keep growing and develop a meaningful relationship. Closed captioning services option can help you reach out to potential clients whose English is not their first language. Closed captioning enables Television viewers to recognize names, technical terms, brands, as well as common expressions quickly by viewing them via closed captions. They can help you target clients who may have hearing difficulties.
Major business decisions, especially international expansion, require evaluating all possible circumstances depending on the strengths and weakness of your business. Thoroughly analyze each feature of your business strategy and try to come up with alternatives and precautions. Take time to understand what your prospective market entails and only make a move when all the details are at your fingertips.
By: Jennifer Livingston