If you’re looking to expand your business, breaking into an international market is a great place to start. Businesses that operate internationally as well as domestically tend to have better higher profits than those who stick to working within their home market. While it’s an important step to take for improving your business, it’s not an easy one. That’s why you need to know how to do it the right way for it to be a success. With this in mind, we have highlighted five tips to help you make the transition into the international business field.
- Look Beyond Major Areas. As a lot of the new export markets are quite large, it’s a good idea to look not just at the major cities but beyond those as well. Take Brazil, for example: the UK Trade and Investment department has suggested that in the city of Recife, a less well-known location in the country, contacts are easier to access and the market is far less competitive than the better-known cities. Another benefit of lower-tier cities is that they often have low-tax enterprise zones, incentives for regional and state support, and a larger talent pool to utilize. So it’s important when looking to international markets to think regionally.
- Make Use Of Resources Available. When you look to break into international markets, there are various resources available you can use. For example, UK Trade and Investment provides businesses with a variety of services, such as advice about the available financial support available to you in different regions and sectors, market research and information, and introductions to local markets. There are also trade associations, chambers of commerce, local consulates, and embassies that provide valuable support and information.
- Conduct Thorough Research. It’s important that you carry out as much research as possible when you are looking to expand into a new market. The things you should research first include: Is there a market for your company’s products? Can you compete with other suppliers and local firms operating in the same market? If the answer to both of these questions is yes, then you can conduct further research such as figuring out the best way to enter a particular market (for example, through local agents, subsidiary, or joint ventures), how to reach prospective customers, the local licensing and taxation rules, rights regarding intellectual property, location choice, and so much more. Although it may feel overwhelming, it’ essential to carry out this research because it will help avoid time and money being wasted.
National Pen, one of the world’s leading promotional product businesses, states that, “One of the key considerations for businesses trying to break into international markets is research to find out what type and style of content local visitors expect from a website. It’s not adequate to create a template for content in one language and then directly translate this content for the target markets. For example, consumers in some countries place more emphasis on product quality compared to price, so in this case it may be important to expand content around product features and benefits.” National Pen is currently featuring their “kugelschreiber werbegeschenk” to their German-speaking market.
- Remain Flexible. When you’re looking to work in a new market, you will always be faced with uncertainties including anything from faster growth than expected to bureaucratic red tape. You need to have a certain degree of flexibility, with regards employing staff and workplace if you want to avoid these often unavoidable uncertainties. This can help you to downsize or expand according to the progress your company makes, without committing to a large capital investment upfront, long-term overheads or long-term leases.
- Learn The Local Etiquette. There is nothing much worse than having a market for your products or services, having sufficient finances in place and making great contacts, only to offend prospective business partners by making an easily avoidable etiquette faux pas. There are various rules for everything from how you greet someone to whether it is disrespectful to say no when offered a cup or tea and so much more. These rules are different from country to country and often from region to region. Although guidebooks can help you understand what you should and shouldn’t do, it is best to take a visit yourself and find out from local people what works and what doesn’t.
