GLOBAL EXPANSION : THE WHEEL OF FORTUNE
A certain section of the entrepreneur population is reluctant to expand their business to the global market ,even after being successful in the local market. Many doubts cross their minds regarding this matter, and stories of failed business expansions add a few more doubts. But Business expansion is like a wheel of fortune, once it strikes, then there’s no looking back, you can establish your own brand in the global market. Let us give an insight into the do’s and don’ts of Global business expansion. Global expansion sure brings a lot of growth opportunities, but there are a certain set of points that have to be kept in mind.
Knowing the country before setting up your business there
Before expanding your business into another market, make sure that you research about the customs and traditions of the country. You will have to overcome language and traditional barriers too to have a clear cut idea of the likes and dislikes of the customers in that region.
Leverage existing customer relationships
If you are considered as a valued supplier to an important customer, the customer himself may serve as a major key to global expansion. Make sure that the customer's needs are being well-served overseas, and check if they are willing to allow you to serve them in those markets. If your products and relationship with them are truly unique and trustworthy, they may be willing to partner with you. They may even be willing to invest alongside you or help minimize your risk with favorable contract terms.
Finding efficient partners
Businesses have a better chance at prospering overseas, if one has a trusted partnership with suppliers, distributors and consultants who can popularize the business in the local market. Proper objectives and expectations, and creating transparency and visibility between both partners, is critical.
Update Business Plans
Your business plans ought to be updated to link it with the expectations of the market. The updates should include insights into potential markets and their customers, import and export strategies.
Exploring options before investing one’s own capital
Governments of emerging markets usually invest a certain sum for business opportunities in their country. Mike Shanley, Ceo of Konektid International says, “Governments and multilateral banks invest $150 billion into developing opportunities in emerging markets every year. Too often, businesses see these investments as charity and not a business opportunity. So, they miss out on leveraging these resources to accelerate their market entry process.”
Expanding your market globally is a key step to success and it is indeed a wheel of fortune if one spins it in the right way.