Expanding your business horizon has a lot of advantages that you can’t uncover at once, and not expanding it can set your business up for failure as it will remain stagnant for years while competitors who capitalize on your business’ negligence will keep amassing profit.
Having a business strategy is important before taking any bold step, as that decision can make or mar your business. Business expansion is intimidating as it puts your business in a position to make global growth a reality.
Steps For Global Expansion
Global expansion has a lot to do with how successful your business will be in a few years. So, you need to be sure of all the indicators before taking the bold step.
1. Do Your Due Diligence
It’s never okay to assume your business will do well in the global space. Rather, do your due diligence by performing market analysis if your business will thrive in the foreign market. Do your due diligence with the local products over there as well.
Do a SWOT analysis if your product will be preferred to the local products there and if your price is quite higher than the local ones, will they still prefer it? Do the market research on how long it will take before you can penetrate the market and stand firm against all odds.
2. Develop Entry And Exit Strategy
One of the business expansion strategies is to be aware of when to enter a foreign market and when to exit it. Different requirements for different countries; in China, it takes up to two years for the government to approve the request of a business that wants to shut down, while in the United States, France, or Dubai, it doesn’t take that long.
Also, a well-drafted entry strategy will help you set your foot in the right direction. When you need more capable hands on deck, your HR will have little or no difficulties recruiting the best talents in the country for your business.
3. Use The Agile Approach
The agile approach simply means setting smaller goals to reach a bigger goal. When you set milestones that are easier to reach, you will find it easy to attain the main target. So, set a short-term target and long-term target; take your time and be consistent.
While setting your goals, take time to assign a team that will be in charge of your business accounts and recruitment. Most countries grant you permission to have an entity in their country within a few days, while it might take months in some countries.
Countries like China, the United States, France, and Dubai are perfect for business expansion. Also, virtual business accounts are important for new businesses who are yet to find their feet and of all the countries that were mentioned earlier, virtual business accounts in Hong Kong seem to be the most reliable even though virtual banks in the U.S and other countries are great.
Select Global Hiring Method
As a new business, you need talents to help grow your business; you can choose to partner with a global PEO to help recruit the best talent including hiring foreign independent contractors.
Also, don’t forget to do due diligence by researching the laws governing recruitment in the country.
5. Include The Locals In Your Plan
Of course, you need experts to move things quickly, and a diverse workforce is the best strength your business needs in the new country. Also, you need the locals to help your business thrive in the market since they are familiar with the culture, and they will provide long-term success for your business.
6. Seek Partnership
Before expanding to another country, you need to understand some myriad laws of the country you need to understand. Ignorance of these laws could lead to fines, legal actions and even loss of productivity.
To save your business the stress, you can partner with global expansion experts for a seamless transition.
Business expansion is a crucial stage in which every business has to utilize the opportunity to expand their territory or end up regretting it.
Of course, it’s not a day job, and it requires dedication, consistency, and strategy. The strategies will pave the way and help you achieve your goal in the foreign market.
Conclusively, global business expansion helps you maximize profit and increase your customer base since you can choose to open a branch or subsidiary in the target country.