How to create a business strategy for your international expansion
Bringing a local business on the global platform is a vast and highly discussed topic as it brings what everyone is looking for – expansion and growth. Undoubtedly, diving into foreign markets is a risky, complex and challenging experience as it requires careful planning, budgeting and resourcing. The easiest way to go about it is to break the whole process into stages.
How do you get started?
1.Research the market you will be entering and consider all barriers – cultural, legal, competition. Prepare all necessary business analyses:
– Market segmentation analysis – take into account all variables (geographic, demographic, psychographic and behavioral segmentation) so you can identify the different needs of your potential customers and have a close estimation on the demand for your product. Use LI (Location Intelligence) to enrich your segmentation and make it as accurate as possible.
– SWOT analysis – to make that analysis successful and useful, ask for input from your employees, suppliers, customers and partners.
– Gap analysis – compare your company’s actual performance with its expected performance to determine if it’s meeting expectations and using its resources effectively. Create a strategy to help you fill the “gap” and move your business forward.
2.Calculate costs and ROI – Calculate expansion costs and operating costs separately where your expansion costs include your initial expenses and your operating costs are the ones that will occur after your expansion has started. Calculate your ROI by making a projection for your sales volumes and profits.
3.Develop your strategies – Create your value proposition, sales strategy, online and offline marketing, pricing and plan your budget.
4.Align your business with the foreign market requirements and conditions – consider language, legislation, culture, currency. Make sure you will be able to make and accept payments in multiple currencies to make it easier and convenient to transact with suppliers, partners and clients.
Choosing the best approach and strategy to expand internationally depend on the foreign market you plan to enter, the type of business you own and the scale of expansion you are aiming at. If your goals require higher budgets, it is good to search for investors to ensure a good and promising start.