A company that is a domestic success does not mean that they will have the same result in an international market. The money invested in expanding internationally can be vast depending on the licenses needed, real estate market, and staffing an entire other branch. Even with a vast amount of investment from the company, this does not guarantee success unfortunately. The best thing a company can do is research the market in another country thoroughly before starting the expansion process in the location. This proactive approach needs to be taken as company money should not be spent on a whim. The following are tips that will help make expanding internationally a success when invested in.
Current Staff With Knowledge About The Country
The days of having to go research an offer due to not knowing the conversion rate from currency to currency are gone. A currency converter with VAT calculator can be found easily online and there are apps that allow a person to get instant conversions. The last thing that you want to do is to verbally agree on a deal for a smaller margin than usually is required. This not only will hurt the company but going back on this deal can lose a client permanently. Clients want to work with companies that keep promises and think of verbal agreements as binding as trust is hard to build in today’s competitive business landscape.
Take Time To Do A Soft Launch of Products or Services
Doing market research is important but this can be done by doing a soft launch of what you will be offering in your new area. A marketing company could do this without having to travel by targeting a country to produce new clients for them. In specific locations people in business like to meet face to face so having a physical office abroad is necessary to close larger deals. Getting an idea of the demand for a product or service is important as is the data that is gathered during this process. Make the final decision based on data rather than emotions as emotional decisions in business can be disastrous.
Make Sure Any Manufacturing Done Abroad Is Done In Line With The Brand
Companies that are creating massive amounts of products might want to expand internationally to save on manufacturing costs. This can be dangerous to a brand though as inhumane working conditions could be present which can turn into a PR nightmare for a company. Saving money by outsourcing manufacturing is a common practice but saving on this cost at times comes with a drop in quality. The last thing that a company wants when expanding internationally is to alienate customers domestically by dropping quality of product without dropping price.
Take Time Building Your Team In The New Location
Hire slowly and fire quickly when expanding abroad as overspending can cripple cash flow going forward. Internship programs are common throughout the world so this can be a great way to have a potential hire “try out” before they finish their education. Depending on the location top talent might be willing to make the move as it could lead to a promotion in title. Sales differ in every location so the skills it takes to sell in the UK or US might be completely different than in Japan. There might be a learning curve when it comes to hiring so looking into a staffing company could help increase quality of hires.
Allocating funds to international expansion should always be done with care. Setting this new location up for success could lead to worldwide expansion if all goes well. Do not limit your business to domestic clients only as in today’s world technology has made the world as connected as ever!