Planning an international expansion? International expansion can be an intelligent way for a successful business to branch out, dominate the industry and reach a much greater customer base, but it is also a major undertaking with several key challenges. Read on to discover what a business needs to do if it has plans on expanding overseas.
Assess Readiness for Expansion
Before you get started, you need to make sure that your business is in the right position to expand internationally. Many businesses make the incredibly dangerous mistake of expanding overseas in order to compensate for a sales decline or issues at home, which will only make matters worse as it is an enormous step to take. This is why you must make sure that you are secure in your original market, in a healthy financial position and that the organization is ready for expansion.
Market Research, Strategy & Business Plan
Much like when first starting a new company, international expansion begins with thorough market research, developing a strategy and creating a detailed business plan. This will all act as a blueprint to your success and allow you to make intelligent decisions to find success at home and abroad – keep in mind that different cultures have different cultures, regulations and markets, so what works at home may not necessarily work abroad.
Check Legal Requirements
Another area that can vary depending on where you are is laws and you certainly do not want to be breaking any laws when you set up a new business in a different country. This is why it is worth speaking to an international law firm that will be able to advise and ensure that everything is above board from day one.
It is at this stage that you will want to make sure that you have prepared your budget and that you have your finances in order for international expansion, which can be a major cost so financing is often required. This should involve preparing a 3-year budget with KPIs and updating stakeholders at least every 6 months.
Build Your Team
You can then start building your team, which will include recruiting local experts that will be able to help you to get set up and running in the new country. There is a great deal of trust that is required with international expansion as you must be able to give up some control and delegate, so having the right people in place is key.
These are the key stages to international expansion and all areas that need plenty of focus and attention.