Grow your Business Internationally
Going on an international level is defined as a worldwide movement towards the economy, financial-trade, and communications integration. The idea of globalization can be followed back similar to the Roman Empire and we still are moving towards it through our business practices nowadays. It’s quite obvious that it would continue to grow in the 21st century.
For small and emerging businesses, going on an international scale can be a critical endeavor and it could also disrupt the existing business exercises. In this manner, it is vital for CEOs and business pioneers to comprehend its full effect and decide whether the rewards outweigh the risks. Stakeholders across the company will be approached to handle more duties to keep on executing everyday exercises in addition to the global initiative.
Taking a business on a global scale is a complex and dynamic procedure. Having a deep understanding of the targeted markets and audience, the competitors over there, current local market patterns, and the requirements to successfully launch and drive growth lay an important foundation.
1. A Deep Dive Due Diligence-
Prior to going international, it is important to know and understand, what will be the full effect on your business.
- Set up a market division analysis to decide whether your products and services will be good enough for the local market.
- Set up a product gap analysis against local products and services. This will tell you whether there a demand that isn't fulfilled by a local company and is that so, your products and services can be a solution to customers’ problems.
- Play out a SWOT analysis against the competitors in the market. Research if your product will higher be priced than local products. Will the consumer purchase your product or not?
- Consider market opportunity/sizing. How huge is the market and what amount of time will it require for you to match your targeted sales?
2. Develop a Strategy and Business Plan-
Each market has its own variations because of financial, social, governmental, and market conditions. It is critical to developing a localized strategy and business plan that drives success locally while staying integrated with the overall corporate strategy and goals.
- Set sensible goals to measure progress and cost/benefits, whether it’s a short, medium or long-term strategy.
- Understand goals, objectives, and success measurements.
- Complete the business model and design. Choose if you want to set up a different company, a branch, or a business office.
- Design a top-down annual budget.
- Design a tactical project plan with commit dates.
3. Establish a Beachhead Team-
Numerous international companies attempt to launch with employees from the parent company or quickly build a local team from scratch. This is tedious, risky, and slows time to market. Using proven senior interim executives allows the company to get straight down to business, quickly validate assumptions, and drive key readiness initiatives while the company enlists the correct senior management team.
- Deploy senior interim executives with deep domain aptitude or outsource interim leadership to executive leadership decisions.
- Set up the financial plan, consider outsourcing this to local service providers.
- Start the recruiting cycle to form a permanent leadership team.
4. Product Readiness-
Based on your product gap analysis, take the best step to put products and services out in the market for better sales.
- Survey government-and industry-explicit guidelines to guarantee that consistency and certifications are obtained if necessary.
- Decide whether any localization of the product is required. Give close attention to the change of the name of your product according to the local market’s language.
- Start a patent and brand name review
- Start testing and quality assurance audits dependent on local standards.
- Go with a local logistics and distribution network, they’ll sell your products and services and how might it get to them?
5. Be Prepared for Organizational Procedures-
Cultural differences, whether it is language, norms, or customs, required to be adaptable in the policies and methods implemented in an international operation to guarantee employees that are engaged and executing on the company's plan. The "one size fits everything" mindset can have short-term advantages yet will have negative long-term impacts.
- Evaluate the organizational structure needed to successfully execute your strategy.
- Create policies, strategies, and handbooks according to the local needs while maintaining balance with overall company policies.
- Make competitive advantages projects to pull in qualified local employees.
- Make competitive compensation packages dependent on local guidelines and customs.
- Build up a local information innovation foundation that is viable with your domestic infrastructure.
- Manage payroll and human resource functions.
6. Creat a Go-to-Market Plan-
For effective sales and marketing of the products and services, a broad strategy is required that addresses sales targets, delivery, value proposition, unique marketing strategy&programs, and costs, which together will create a clear market acceptance and revenue growth.
- Make an optimum sales model.
- Make your sales methodology that incorporates solutions, features, and costs.
- Decide if a new brand will be created for international markets or the parent brand will be enough.
- Evaluate your pricing strategies according to the consumers in less developed countries. If the prices are too high your product may not fit the local economic environment.
7. Be Legally Prepared-
Many countries across the globe are known for being highly quarrelsome, to avoid such encounters, it is important that strong legal procedures are taken care of. Also, there are governmental policies, requirements, and legal documentation that vary from country to country which should be the priority before you start operating within the country. It is an important step through which you can avoid offsets downstream risks and liabilities.
- Create localized commercial agreements.
- Review industry-specific regulations to avoid complications.
- Perform general corporate services such as dispute resolution, immigration, customs, and shipping.
- Maintain corporate records and governance as needed.
8. Be Prepared for Taxes and Finances-
The proper tax and finance formalities need to be set up early on to ensure that you are receiving timely reporting and that your foreign entity is adhering to local corporate policies and procedures.
- Consider outsourcing accounting, payroll, and tax.
- Establish local banking relationships.
- Create a risk management plan.
- Create a transfer pricing plan.
- Create a cash repatriation plan.
- Prepare and report sales and VAT taxes.
9. Work on the Final Budget-
Results from the above-mentioned steps should provide sufficient data for you of the foreign company to develop a final budget that is aggressive yet attainable, and one that will be owned by your local team.
- Develop a 3-year budget and a 12-month business plan with detailed key performance indicators, and update every 6 months.
- Perform quarterly operating reviews.
- Establish a real-time budget for actual reporting.
10. Relationships with Local Businesses-
Gain a strong competitive advantage by creating a supporting ecosystem of complementary products and services, which can come via third-party relationships. These relationships can support the scaling of the organization while minimizing the financial risk.
- Negotiate alliance/partner/distributorship programs.
- Develop an ecosystem strategy and business model.
- Build an internal alliance team to manage and foster relationships.
Expanding your business overseas is not for the fainthearted, but for most businesses, it will be inevitable as global markets offer greater opportunities for growth. By paying attention to details and outsourcing administrative functions, the difficult job of “going global” can produce great profits.