Many firms aspire to ‘go global.’ Globalisation is a heady and exhilarating process that, when done well, produces growth upon growth. Going worldwide is now simpler than ever because of advancements in commerce, supply chains, data processing, and analytics.
However, it still requires a steady hand at the helm, which necessitates planning and ability. Here are eight tips you can follow for your overseas expansion journey.
#1 Formulate a Strategy
What works in one location might not work in another. Creating a localised business expansion approach is a critical success factor. There can be no market expansion without a business strategy that considers the intricacies of a foreign market. You must create a tactical project with goals, KPIs, and financial constraints. Determine your development options as well, since these might include:
- Arrangements for licensing
- Acquisitions and mergers
- Alternatively, you can establish a legal corporation with the assistance of a Professional Employer Organisation (PEO).
You’ll also need to decide whether a country is the best fit for your business. You may accomplish this by finding markets and audiences comparable to yours. It is also best to analyse client demands and social media trends.
#2 Conduct Your Market Research
Before pursuing globalisation, your company must first assess where it is and where it wants to go. You may accomplish this by putting the following measures in place:
- Product: If you intend to market your product or service in another country, do a product gap analysis versus local offers. It will assist you in determining your position upon market access.
- Market: Market segmentation study can assist your business expansion in whether or not your product/service will sell successfully in your target market.
- Competition: You will also need to do a SWOT analysis to evaluate your competitors. Local rivals may provide comparable items at lower prices, so how can you differentiate yourself?
- Potential: What is the size of the target market? Is it expanding or contracting? The market potential can assist you in determining the environmental health of your company operation.
#3 Be Ready for the Market
Return to your product gap analysis results. Take the time to identify any changes to your product or market expansion strategy to help you succeed in the new market. However, this also applies to the local regulatory environment, as in:
- Investigate local rules and confirm that your product complies.
- Consider product localisation. There have been several circumstances where product names sound weird or harsh when translated. It can be a significant impediment to your growth and market access.
- Don’t forget to trademark or patent your goods.
- Ensure that your product is quality tested not just by your standards but also with the norms of your target nation.
Finally, look at the local distribution techniques that are accessible to you. If you’re looking for a local relationship, this may be easier because established businesses will already have distribution channels in place for you to exploit.
#4 Think About Your Sales Strategy
A well-defined sales plan will take the following factors into account:
- Delivery of sales.
- Value proposition and branding
- Marketing strategy and campaigns
- Costing (factoring in exchange rates and local taxation)
Determine whether your product is appropriate for the local economy. Expensive luxury things make little sense in impoverished places. You should develop a localised pricing and sales plan before you plan your market expansion strategy for growth.
#5 Comply with All Legal Requirements
It is best to follow the rules for your overseas expansion since some nations have more stringent regulatory organisations and regulations than others. Compliance fosters compliance, assisting in a more equitable market in which the qualities of your product, company strategy, and employees determine success.
You should be aware of any unique regulations that may apply to you, whether the host nation or any trade agreements impose on them. It will also entail registering your company with the appropriate authorities, drafting localised commercial terms and adhering to industry-specific standards and laws for your business expansion.
In addition, you’ll need to:
- Ensure that any expatriate personnel in the country holds a valid visa.
- Follow the necessary routes for goods and transportation.
- Keep meticulous records of the overseas expansion of your company. It may be worthwhile to outsource this task to a PEO to maintain compliance.
#6 Study Their Tax Laws
Consider outsourcing your accounting, payroll and tax when planning your market expansion strategy. You need to ensure that your foreign entity is compliant with local corporate policies. Remember to create reliable reports on sales and VAT taxes. Do it only if it is applicable. Upon beginning your overseas expansion, navigate the local tax laws alongside any international tax laws that may apply.
#7 Consider Your Budget
You can structure your budget in various ways. Many businesses look for entities that can provide them with a business expansion grant. One approach is to create a three-year budget alongside a rolling 12-month business expansion plan. Ensure that it can be updated, complete with applicable KPIs. Finding granular level detail is also a good idea, so creating a near real-time budget (weekly) to correlate with data reporting will provide you with a more up-to-date and adaptable perspective of your finances.
If you want to develop an adjustable budget for your overseas expansion, this may be the way to go. Working with a Global PEO can cut growth expenses by up to 70% compared to in-house implementation. Choosing a PEO partnership might provide you with the best peace of mind. There may be significant changes with influences brought by environmental variables such as currency rates and trade agreements.
Only Work With the Best
Scaler8 is a trusted market expansion expert in Singapore. Singapore’s Global Innovation Alliance provides Asian startups and SMEs with the framework for successful German entry. Scaler8 offers tailored services backed by German Entrepreneurship. It is a leading innovation services provider with reliable connections and expertise in Germany and Asia.
Work with Scaler8 to get the best market expansion strategy from the most trusted agency. Contact them for all your questions and inquiries.