How to Take Your Company to the Global Market
The world is a big place to do business with. While you could choose to stick in your comfort zone—typically, your native place—and go through the same things year after year in business, it often connotes limited growth compared to those who took the risk of venturing overseas.
Yet, while it may sound so easy to make a leap into the global business stage, it does not necessarily always imply success to those who braved the idea. Like how building a startup and its eventual growth has its own sets of challenges and obstacles along the way, expanding to cater for the wider international clients is not without its conundrums for every business.
However, those who do venture on the bigger picture and overcame are surely to find growth to their business which is otherwise restricted in their original, local scope.
Reasons to bring your business globally
Here are a handful of ways in how you would be benefited with bringing your business internationally:
- Finding a new market helps extend the sales life of your products or services
- You get more freedom regarding the market you make business with or you get less dependent on the market where your enterprise is originally rooted from
- In the case of the oftentimes inevitable business-hampering fluctuations, having options to different market helps you even out sales by shifting towards areas with more stable economic weather
- You get to learn about corporate technology and, equally important, utilizing it as part of the way you do business on a bigger scale
- You get to compete with foreign companies and even take the battle in their own ground
Questions to Ask
Your business may already be well-entrenched in the local scene and is confident enough in delivering the same quality products or services to a larger consumer base. But hold your horses, ask yourselves these questions first:
- How does your product or service fare with the targeted culture?
While there are kinds of products or services that are universally-embraced by people across culture, there are also the sensitive areas which you need to consider for your business to thrive.
For instance, if you are thinking of running a fast food chain in a mostly Hindu community area, ought to know what the people of this faith would consider as offensive and what is allowed, particularly with the kind of meat you’re serving.
In another example, in a country like Bolivia where eating home-cooked meals takes center stage in many of its inhabitants, a fast food chain is bound for a very small market and may not be feasible for business.
Knowing, therefore, not just the demand for a particular product or service but also the culture inherent to the place is essential.
- How familiar is your target market with your product or service?
You may be offering a kind of product or service that is still fresh from consumer consciousness or one that is familiar yet something very new. But, whether known or not, part of the branding process would entail you investing lots of time and money in educating your target consumers about what you have to offer.
- Are you comfortable operating your business in this new environment?
Unless you are comfortable that someone else will handle the early operations of your business in a new territory, the chance is good that you yourself should be the one doing the work from the start. But to conduct your business effectively, you must first learn about the culture and even have a knowledge of the language at the functional level.
- Other important things you should know
When doing a business, the quality of the infrastructure is always important, regardless of the trade. With the Western culture being the international standard for most of the time, you may want to ask yourself whether you can get Western-style accommodation and support as needed.
Furthermore, consider the quality of the roads. Are they cemented or are they still paved on soil? What about the supplies needed for your business? Is there a guarantee for it?
Now, not all places that are a hotspot for something are good for business. Sometimes, there are just those places where your business will not fly. But do not blame yourself for coming across such a bad experience in enterprise. Other times, you have just chosen the wrong place.
The Risks of Exporting
Going global with a business may open lots of opportunities you would not find by sticking to local, but perks such as of this nature do not necessarily come easy. Whether it is finding more than too many opportunities than you can handle or getting afflicted by the fluctuating currencies, the world of international business can be dizzying and not something a domestic-only business could see.
But while having the courage to choose to grow may be a wise choice if you’re serious about making a large leap in business, only those who do overcome the obstacles do attain its wanted benefits.
Many had attempted to reach for the wider world in business but failed. However, it should not imply you following the same route.
Common mistakes businesspeople commit when exporting
Listed below are the common mistakes people make when exporting:
Having no strategy
People may assume that big businesses are well-versed in making well-laid out strategies that maintain their position in their chosen industry, however many of these companies failed as well due to lack of strategy.
Marketing around the world
One common mistake that business people made is to think that they are ready to market their product everywhere. This usually happens when they get so many queries from various countries. People should understand their capacity and their readiness to respond to any open doors especially on countries which they knew a little.
“Different strokes for different folks”
Sales and marketing initiatives must be tailored fit to different countries. One should understand the cultural differences which have a great influence on the marketplace. The same issue must be considered when it comes to packaging, shipping, terms of payments and other fine prints requirements.
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