Turn the world into your piggy bank! 41,000 companies have a combined market value of more than $80 trillion. The overwhelming majority of these companies made their money through global expansion.
Global expansion isn’t just about selling products in a few countries. It requires a comprehensive strategy and a lot of work. You can start by learning about the essentials of global business expansion.
What models can you use to expand your business? How can you set and reach goals for yourself? What resources do you need for your businesses abroad?
Answer these questions and you can reap the rewards of the global market. Here is your quick guide.
Consider Different Models for Business Expansion
Global business expansion can mean a few different things. An international strategy means your business will maintain its headquarters in your home country. But you will export your goods and services to other countries, running warehouses abroad.
A transnational strategy means you will maintain a head office at home. You will open local offices in other countries and run subsidiaries, producing your products overseas. McDonald’s and Nike use this strategy.
A multi-domestic strategy involves opening country-specific brands. This lets you run advertising campaigns and create products specifically for that country.
A global strategy involves building one global brand. You make no changes for other markets. This is very difficult to pull off, though it can save you time and money.
You do not have to pick a strategy yet. Look over your different options and talk to a financial advisor about what to do.
Create Company Goals
Once you’ve selected a strategy, you need to think of company goals. Your strategy should fulfill an aim for your company, allowing it to compete better with others.
Your goal can be tangible, like increasing your sales by a certain amount. But you can think about intangible goals, such as developing your brand or widening your talent pool.
Set yourself a deadline. Since global expansion can take years, your deadline can be five or 10 years in the future. You should have a way of measuring your progress, and you can hire someone to keep an eye on your progress.
You can give yourself short-term subgoals that let you reach your main goal. To increase your sales, you may need to hire more employees or create new slogans. Each of these subgoals should be attainable within a year so you can stay focused on your main goal.
Market research is the most essential part of global marketing. Do not pick a market just because it is across the border from your home country.
You need to do research on it and understand what consumers want. Your products must satisfy their needs and help them resolve problems that they have daily. If your products wouldn’t sell well in that country, you should not expand to that country.
Even if you think your products meet a country’s needs, you need to research the country’s culture and customs. Look at how international corporations market their products and services in that country. Create ads that will fit the country’s culture and not offend locals.
Once you’ve selected a country, you can research the local demographics. Pick specific groups of people you want to market to, like young people or urban professionals. Start to develop ad campaigns that will appeal to these groups.
Hire Experienced Employees
Regardless of what your goal is, you need to hire employees in the countries you are expanding into. Talk to these employees about what your new markets are about.
If you are opening offices or facilities in other countries, you will need to hire managers. Work with a hiring firm to recruit and examine different candidates.
You need to give your managers some autonomy. You can give them orders and resources, but allow them to use the resources as they see fit. Take their advice and be willing to make changes to your company if they give you good ideas.
In addition to full-time employees, you need to hire distributors. They can transport your products and employees, and they can talk to local government officials so you pay taxes and fees on time. You can hire a few distributors if you are working in a very large company.
Monitor Your Foreign Branches
You are not done with your global expansion once your foreign operations are going. You need to examine them closely and remain in touch with your managers.
It is okay if you struggle during the first few months or years. It can take time to develop trust with customers in a new market and expand your product line. You can visit websites like bradfordjacobs.com and learn about the services you can hire to help your company.
You can shut down a branch if it consistently fails to turn a profit. Make sure your employees can find new jobs, including within your own company. You can also try rescaling your domestic operations so you have more money for international projects.
Master Global Expansion
Global expansion is the best way you can transform your company. You can adopt a particular model for expansion, but make sure your expansion fits a goal of yours. Conduct top-to-bottom market research and find demographics you can appeal to.
Hire employees who can handle your operations and offer you good feedback. Keep your eye closely on your foreign branches and be willing to pivot if things are not working out.
International commerce evolves quickly, and you must have the latest facts in order to succeed. Read more international business guides by following our coverage.
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