In case you haven’t noticed, the dollar is doing surprisingly well at the moment. In fact, almost anywhere you go you will find that your money stretches further than it may have done a few years ago. The dollar versus the peso, for example, is at a nine year high and the dollar versus somewhere halfway around the world, such as the Indonesian Rupiah, is staggeringly good. However, if you looking at this in terms of a good holiday destination right now, we would tell you to think bigger. Holiday property? Bigger still. Yeah, we’re talking about expanding your business because now is one of the best time opportunities you’ll get.
Of course, money is only part of it when it comes to expanding your business globally. It also requires your business – and model – to work overseas too, which is something else the timing really helps out with. With that said, some overseas niches will suit what you offer better than others, and that is why you need to spend some time identifying your best options before you go after it.
So, while you may have the strength of the dollar on your side, being able to expand into another global market – say Mexico or Indonesia – you first need to be able to satisfy the markets effectively. That is the key to all of this. It is about making sure that your business will meet the local needs, requirements, rules, target audience and just about everything else you can think of. The good news is, this can be easily achieved with careful investigation, market research, efficient planning, and an execution strategy that manages your resources to best effect. With this in mind and in place, well, success on a global marketplace becomes a lot easier.
But, to help you out a little more, we have come up with a list of steps that will help bolster your chances that much more:
Stop For A Second And Look In The Mirror
It is all well and good wanting to know if your service or product will work in the Indonesian market and whether it will be a good fit with regards to their consumer habits, but before you get there we recommend you look at yourself, your business and your industry first. You see, before getting caught up in the excitement of a global expansion, it is so important that you understand just where your business is today, and what the industry is doing today, as well as where they are both heading in the immediate future. This doesn’t just mean where they are heading or where you want them to head, but also what other variables may be on the horizon; the kind of factors that could force your business to change slightly in the future.
What we are saying is, just because you are selling 1.1 million car exhausts per year in America right now, and you are sure they would be a big hit in Mexico and Indonesia because there is a gap in the market, does not mean that this will happen or that the leap is advisable. Instead, take a minute to consider whether it would beneficial to change the design soon, or if a shortage of certain materials is predicted, or if transportation costs would drastically increase the price of your product.
All of these would require your approach to be re-thought out. It is also worth considering what technological advancements are being posed in your industry and working out whether these will make your product redundant a decade from now. If this is the case then, well, it may not be advisable to push for an expansion, no matter how powerful the dollar may be.
Make Sure You Investigate, Research And Analyse Everything
The reason your business worked back home, on American soil, is because you found a market that really wanted your service or product. You found an in and you exploited it. However, what worked for you then may not work for you overseas because, to put it bluntly, demand is not the only issue that you are faced with. Instead, you really have to delve in deep with your investigation and research and identify just what variables could affect your business, for better or worse. Let’s take the somewhat off example we used above – exhausts.
Well, just because they meet the standards in America doesn’t mean they will translate into Mexico, Indonesia or Europe without any tweaks being required. It could be that the materials don’t meet local environmental standards, or you might need to totally overhaul your manufacturing model, maybe even your distribution and sales approach too. However, you will only know what hurdles stand in your way by doing your research – by investigating everything you can thoroughly – first.
It’s Time To Write A Completely New Business Plan
It is very rare that something you created upon your entry into a domestic market will translate into an overseas market, and that includes your business plan. Sure, when you launched your company back home, it was enough to see you succeed on all fronts. But heading abroad, well, everything needs to change from your business plan right through to your expansion strategy.
There are just too many variables that will need to be considered, addressed and changed. We’re talking about analyzing the potential markets you’re looking to expand into, the sources and suppliers you can use their and what the customers buying habits are like. We’re talking about where you will operate from and whether you will need to invest in an Indonesian storefront and whether you will shop around on http://rumahdijual.com/ruko-dijual or somewhere else.
You will need to address your importing and exporting approaches to be successful and have everything planned well in advance, and the same goes with how you finance this expansion and what kind of revenue you anticipate. This is just one side of proceedings too because, as you will have experienced in your first launch, you will also need to address issues like legal requirements, licensing, regulations, marketing approaches, partnership opportunities, and sales models. All of these will drastically differ from what you have now, and that is something you need to be aware of from the get go.
Your Best Friend Will Be Informed Guidance And Help
Unfortunately, there is no set blueprint that can guarantee success. Nor is there a simple formula that will work across the board. This is because every business, market, ambition, and context is different, which is something every entrepreneur or investor needs to know before making a rookie mistake. The good news is, help is out there, really very specialist help too. In fact, the US Government – and state/local governments too – have been known to offer a lot of time and expertise to those US businesses that want to break into a foreign market.
We can’t offer you a full list, but some of the most celebrated resources are the International Trade Association, which can be found at http://www.trade.gov/, as well as the SBA Office of International Trade, International trade Data and bank and, yes, Tradeology. These are all great places to start. Of course, the more help you can get the better, which is why we recommend you speak to other entrepreneurs that have successfully expanded, hire a consultant and call of the expertise of chambers of commerce in your local area. The more you can educate yourself on what it takes to succeed and what hiccups tend to be thrown up, you will stand yourself in good stead when it comes to making that expansion a huge success and not unnecessary risk.
What else is there to say except, well, good luck.