There are many businesses that are successful on your home turf but the moment you expand beyond borders, the trick just fails. What is it about international business that makes it so hard for entrepreneurs to think global? There are some tricks of the trade that will help you set a steady feet in an international territory and will prepare you before hand for the upcoming challenges.
Are you a Success back home
Much of your international credibility lies on your success in your home country. If your product failed at home, chances are your reputation will precede you. However, on the other hand, if you have a great market in your country you will face relatively less challenges in setting firm feet in a new domain. It is always better to first establish yourself at home and then aim for the other nations.
Choose your business model carefully
It is not as simple as opening a store in one city and then in another when you are working in your own country. When you want to start a business abroad, you have to comply with their national laws and look for ways to invest. Some countries invite direct investment while some want you to partner with a firm in their country and form a joint venture.
You can also go for franchising or licensing that also is a form of expansion. An operative within that country will be legally allowed to function in your name. Regardless of what you choose as the way forward, just be careful and complete your due diligence before taking the plunge. It is better to involve a professional service.
Have supporting infrastructures
In order to set up a business outside of your country, you need to have a framework in place that will support expansion beyond borders. If your logistics team or the financial team are incapable of functioning outside of your country then you can lose a lot of money in transactions.
There is also a time difference that needs to be taken into account. What if your customer needs an answer at the middle of the night? It may be his start of the day. You must be equipped to handle queries at all times of the day if you are aiming at global expansion.
Calculate your risk
When you are planning your growth model which is outside of your comfort zone and in this case your country, follow the balanced country portfolio method. If you plainly follow opportunities and not the strategies then you can land yourself in more trouble than profit. Managing the whole situation thousands of miles away can be a very painstaking task.
Rome wasn’t built in a day: When the growth is about transcending boundaries, it will take its time to develop and start reaping profits. To grow internationally is a continuous learning process and you will be up against all new challenges and uncertainties. It is better to approach your international venture with a five year plan as that is the minimum time it takes for a business to set and begin making money.