International business plan
Before making a huge decision like going global with your business, make sure you begin by making a thorough business plan. Consider all of the possible challenges and pitfalls you could face and how you would tackle them. Make sure there is nothing that you have overlooked as that could potentially be your downfall. There is great reward to be won from going global, but it is also a big risk.
Foreign market research
Of course, you must be very familiar with the markets you are entering into. They will inevitably require a different approach to those you are used to, so make sure you do thorough research into how they operate. The Department of Commerce is a great source of information when it comes to this.
Whether you’re going to be setting up local distribution centers across the world or simply keeping one central distribution center, you will need to look into logistics. There are plenty of logistics companies who offer global distribution solutions. If you’re going to be having offices which are spread over different countries, you will also need to consider communications solutions.
Not only will there be a variety of different currencies to consider, you will also have to consider how pricing differs in each country. Demand will also differ depending on your product, and your prices will have to reflect that. There will also be different styles of negotiation than you are used to, so make sure you are well informed before you dive in.
Going global can be incredibly expensive. There are a variety of different options for how to raise funds to become an international company. Governments always have a vested interested in improving foreign trade so take a look at the kind of funding they offer to start with. For example, the Export-Import Bank is an independent U.S. government agency that helps to finance overseas sales.
One of the most important things to consider are international regulations, which must be taken into account before you act. There will be a variety of new regulations for everything from packaging to transportation, so make sure you do your research in order to avoid any penalties.
If you’re looking to expand your business internationally, there is a lot to consider. You need to start with a thorough plan and carry out plenty of foreign market research so that you are informed before you make any big decisions.
Come up with a distribution plan, and make sure you’re aware of how different countries function in terms of currency, prices, and negotiation. Next, see if there is any government funding available to help you as this will an expensive pursuit, and make sure you are up to date with the local trade regulations of the countries that you are planning to trade in.