If you own a thriving business, you will probably have grand plans to take it to the next level. One way that you may want to do that is by opening yourself up to the global markets.
There are many reasons to expand your business to new markets. You may feel as though your existing product offering has reached saturation point in your current operational jurisdiction. By reaching out overseas, you may find additional scope for selling this range.
You may want to be less dependent on your current market for fear of volatility. Having overseas operations may offer you a great deal more security.
There are, however, risks to expanding overseas, and you should always go into it with your eyes wide open. Here are a few things that you should consider before you take the plunge into global waters.
Get It Right At Home
Before you start jumping on jets to make some business connections overseas, you need to make sure there is nothing about your business operations that should not be replicated. If you plan to expand rapidly, the last thing you want to do is take your existing problems to new markets, only to find that you will have the same problem to solve repeatedly.
Getting your current operations running perfectly will allow you to set up the same model overseas easily.
Do Your Research
You will need to know what type of market you are going in for. You will almost certainly be stepping on toes when you open up abroad; it’s always useful to know whose toes they are precisely. Understanding the competition will help you when it comes to finding your way into the marketplace.
For example, Chinese luxury platform Secoo is vast and provide high class branded products, and have a vast market share. Going up against companies such as that may prove to be fierce competition.
Find The Right People On The Ground
You’ll want to have the right people in the country you are opening up in. Firstly, find someone who you can work closely with. You may wish to headhunt this person, so again a bit of local knowledge will not go amiss. You may want to look at networking as a means of meeting the right support, or making use of a recruitment firm.
Understand The Laws And Customs
You may find that your products or services don’t quite fit the marketplace. There may be different rules, and customs at play and this might affect the demand for certain items, make sure you know who you are selling to, and adjust your offer accordingly.
Know All Of The Costs
Different countries operate in various manners. You’ll need to know what the tax laws look like over there. There may be barriers to trade. Some states make it harder for foreign businesses to enter the market place, to protect their own local businesses; this may mean there are tariffs involved in trading.