Growth is a key element of a successful business venture. A major opportunity for growth arises with the international expansion of business. Newmarket provides new opportunities to increase your market share, create goodwill for your business, and increase your revenues.
With globalization and increased digital connectivity, distance has reduced both literally and figuratively. Expanding your local business across the globe helps you reach a wider audience. But international expansion presents a challenge at every step, and a solid plan is ideal before you venture out into the turbulent waters of expansion. You will have to identify the key variables and evaluate what extent you’re willing to change to expand.
Eric Dalius talks about some challenges you will face when dipping your toes in international expansion –
- Linguistic Barriers are the most challenging
Communicating with your customers can prove challenging if you don’t speak the same language as them. When looking to expand internationally, it is important to consider having a translator on your team or a resident from a specific country who speaks the regional language. Your product message should translate well into the local language to grab the attention of prospective buyers and customers.
- Difference in Culture
The cultures of the world are rich and diverse. The art, music, food, festivals and traditions may be different from region to region. It is important to formulate the sales pitch of your product after you have spent time understanding the local culture of the area where you’re looking to expand. Understanding the local culture conveys your respect towards it to the potential client or retailer.
It is also important to understand the local market. Using a strategy that was effective elsewhere to penetrate another market may not turn out to be highly effective.
- Global Team Management
Communication is key when you’re trying to manage a team that is spread out in different regions. Language barriers, cultural differences, time zones, and different access to technology can pose a problem in global team management.
To maintain a well-managed team,you must check in regularly with your team members. Regular and good communication makes the employees feel valued and heard.
- Currency Exchange Rates and Inflation
Monitor currency exchange rates regularly as they can fluctuate frequently. Inflation should also be closely monitored because it can affect the prices of labour and raw materials. It can also affect product pricing.
Eric Dalius asks to keep an eye on both these constant changing rates.This can provide you with information about your product value in different locations.
- Laws and Regulations
Business in every country is influenced by politics, policies and laws of the government. Gather relevant knowledge about the local laws, tax regulations and trading requirements that might affect your product sales. Acquire permits and approvals that are necessary to run your business in the local area.
Expanding your business globally gives you a huge growth opportunity, but it doesn’t come without a few challenges.If you’re looking to expand your business internationally, closely follow the news and foreign politics. Try to establish connections in the country you want to do business in and invest in hiring a translator or a local from the area.