Expanding Your Business to the Global Marketplace
Since the global economic downturn that occurred several years ago, many business owners have been more than hesitant to expand their services globally. Yet, by not doing so, they are closing themselves off from global business opportunities with a wellspring of potential. The global economy is well on its way to regaining some strength and stability. This provides business owners a unique opportunity to get their feet firmly implanted into new markets while the competition is either nervous or can’t afford to branch out.
To successfully expand your business abroad however, business owners need to fully consider these three steps they must take to make a successful transition: demand, logistics and communication.
Firstly, anyone interested in looking to expand their business needs to do thorough research to determine whether there is in fact a demand or opportunity for their service. Some services are tied to situations or cultures that may not ‘translate’ overseas. Take for example a furniture manufacturer who specializes in product made from materials that are only readily available in their headquartered area. This is not a reason not to expand, rather to adapt their business model to meet the new types of demand.
Then the logistics need to be considered. This covers anything from finding and organizing the raw materials to HR and manpower, as well as legal or governmental hurdles and considerations. Each part of the logistical process needs to be thoroughly thought out and accounted for beforehand. Even small oversights can cause the entire global expansion to fail.
Finally, the business owner needs to communicate with his or her new audience. This is achieved by translating and localizing of all the relevant business collateral, as well as the website. This will ensure that prospective clients will both understand what is presented to them, but also feel comfortable with how it is presented.
Though these three steps alone are not enough to guarantee success for a global expansion, they certainly form the foundational pillars which are critical to success.