The Case for Going International

Your business, big or small, can absolutely thrive
as a global entity…if you do your research
and develop a rock-solid plan.

MOST ENTREPRENEURS UNDERSTAND THAT starting a new business can be an enormous undertaking. And after that, at least for a while, your goal may be merely to survive. The countless pitfalls and roadblocks entrepreneurs face when opening their doors for the first time are uniquely daunting, regardless of your skills, preparations or current market conditions. However, when the dust settles, the ultimate goal of every business, large or small, should be not only to survive but to actually prosper.

And that may be why you are thinking of going international now. Just as when you launched your company, this new, multifaceted development process will require exhaustive research, an organized approach, and a plan of attack that will raise your odds of future success abroad.

Follow the signs

It seems almost every business is entering or already playing in the global economy now. It’s natural that you’ve begun to ask exactly how your small business can prosper via international growth. Of course, you have numerous questions and can see nearly infinite factors you will need to focus on. Let’s look at a few initial questions to put your thoughts into perspective. You are probably asking:

• What indicators prompted me to think about international expansion?

• Am I (or are we) up for the challenge?

• Do I have the right people in place?

• Is this the right time? If so, how will I know?

• Where is the logical location for expansion?

• What are the costs involved?

• Is there an immediate need for my products or services elsewhere? Or : Are there suitable, reliable vendors or service providers out there that will make my business grow better or faster back home?

• Do my products or services adapt well in the international marketplace? Or: Do the goods and services I plan to buy need adapting for my purposes back home?

• Where do I begin?

These questions are by no means the only ones you need to investigate. They’re just the starters. However, your answers to them can set the stage for those in-depth discussions with your partners, investors and out-sourced personnel in determining the viability of this important next step in the evolution of your business.

Steps you don’t want to side-step

The biggest question, one we are constantly asked by entrepreneurs when the subject of international expansion and growth is brought up, is “Where do I begin?” And it’s for a good reason. Having that rock-solid plan of attack is vital to your success, and the research behind it is no less important. Although all of this will be broken down as you read further, the following five steps will help you get this exciting process pointed in the right direction and assist you in determining the proper timing, the best approach, and the necessary steps involved in taking your business to the next level.

1. Know what you don’t know. We all like to think we know everything, but sadly this is never the case. Expanding into another country will carry an entirely new set of circumstances with it. Having qualified and professional people and organizations to help you navigate through the labyrinth of legal, accounting, real estate, logistic, economic, and cultural factors will be essential to your success.

2. Determine the viability of your products or services on the international stage; vet your potential suppliers. You may be selling record numbers of your products or services locally. You may get the highest marks for customer service in your hometown. You may even be the local market leader in your industry. But does it translate elsewhere? Will the same marketing and advertising approaches be effective outside of your current market? Alternatively, if you are going global in order to expand your supplier base, you’ll need to apply all the questions you’d typically ask a prospective vendor back home. Either way, it may be necessary to work with local experts to be sure you’re getting valid, reliable information.

3. Research the best fit for your expansion. Countless factors will present themselves when you begin researching potential locations for your initial expansion. Be mindful of aspects such as the economic stability of the surrounding region(s), currency exchange rates, the ease (or difficulty) of import/export requirements, language and cultural considerations, demographics, the actual need for your products or services, the already-present competitors for your potential customers, local laws and the legal elements attached, and overall costs to operate in the region. If you plan to buy goods or service abroad, you can add questions about the reputation of vendors, the infrastructure, safety testing and so forth. Again, there are many other things to consider, but these elements will help shape the discussions regarding this particular step.

4. Fire up that biz plan. An absolute necessity for every entrepreneur, a fully-executed business plan is essential for putting everything into perspective for your future international growth. It will serve as a road map for your success; and it will demonstrate to investors, lenders, landlords and others your well-thought-out intentions and plans for your new a new market or source.

5. Bring in others to help you get “in the know.” Every market and source of supply is unique, and often they can vary greatly, even over very short distances. Assembling a resource team of professional entities (legal, accounting, etc.) as well as locally-based individuals (residents, local businesspeople, agents or consultants, new referral sources, etc.) will help you understand everything from buying trends to cultural and economic aspects of operating a business abroad. Joining local business guilds and getting involved with several networking organizations in advance of your expansion will also help ensure success.

Make the case

In addition to expanding your flourishing business, crossing the threshold into an overseas market can help stimulate a sluggish or even stagnant enterprise. Working in new surroundings, experiencing a different culture, and discovering an untapped market or source of things you need can inspire you to take your business to even greater heights back home.

The case for going international should be one that stirs excitement and anticipation for you, your partners and your investors alike. Keep in mind that even though there will be pitfalls and challenges, a well-executed launch, based on proper research and a rock-solid plan of attack, can yield a sound and profitable business decision for everyone involved.

M.P.