By Andy Latkovskis: Andy is an HR Officer who specializes in employee training and development. He is truly passionate about nurturing talent and ideas that evoke transformative change in individuals, teams, and organizations
Going global is no joke. For any business to expand its services and step into foreign markets, it needs to have a solid plan in place. The plan should include several considerations to deal with the challenges it will have to face when going global.
In this article, we discuss 5 of those considerations you must make when expanding to a foreign market and becoming an international business.
Let’s dive right in.
1- Do your homework
Before you think of going global, you need to understand the work it takes and the challenges you’re destined to face on this path.
First and foremost, every country has a different life cost. So if you go out there and start selling your super-expensive services in a country with a really weak economy, it’s a no-brainer that you won’t do any good there. You have to select markets where your selling price is viable.
However, you can target cheaper markets by manufacturing your products there, too. That being said, you’d then have to do extensive research on the labor, real estate, manufacturing, and logistics costs.
Only select markets where your business model seems to be viable. You should be able to sell your products at competitive prices, and still, make enough money to keep running your business.
2- You will have to earn your recognition from the start
No matter how recognized you are in your home country, things won’t be the same in the foreign markets. In most cases, you will have to start from scratch to build a solid name. However, your experience will indeed help you in this venture.
Before you invest in setting up hubs and start providing your services or selling products in the new market, it’s better to begin marketing beforehand. Launching market campaigns in the target areas will help you earn some props before you even enter the market. Furthermore, doing so will help you create hype about your brand; encouraging people to wait for you and purchase from you when your services are finally available to them.
3- Marketing strategies must be altered
The marketing strategies you’re using in your home market may not work in the foreign ones you’re going to invade. See, every market may have a different set of needs and requirements that you must adhere to. You have to hit where it matters the most.
Deeply study the target market to figure out what people there are looking for. Then, base your marketing campaigns on what you’ve learned.
4- Language barriers are a thing
The language barrier is a huge problem when you’re heading to a market with a different native language. Even though English is an international language, it’s not appreciated very much across the globe. People still prefer to communicate and be communicated within their native languages.
To make sure your business doesn’t lag due to language barriers, localize your products, services, customer interactions, marketing material, and every other piece of content you’re releasing to the public.
To get help with this venture, make sure to partner with a translation services company. While hiring individual freelancers works too, it’s recommended to partner with a fully-fledged company to handle such a massive task.
5- You need to represent the local communities
When you’re new in a market, you have to look and speak like your customers to develop a sense of connection. But you can’t change your and your staff’s appearance, can you?
That’s why you must hire local employees who can help you connect with your customers natively. When people from their local communities speak in favor of your services, it will have a solid impact on building your brand recognition.
The bottom line
Becoming an international business is not a walk in the park. It requires an extensive amount of homework to even select the right market to expand to, then comes the problem of settling in the new market as a trustful entity.
This article gives you 5 considerations you must make before you head into a foreign market and become an international business.