by B&F services Administrator | Category Business
Setting up overseas has a great amount of challenge and a high level of difficulty which most growing businesses are concern about. Here we present a step to step guide that every business needs to know to do international trading very well. When thinking of expanding overseas, you should consider all these steps.
Growing your business overseas is not just a great opportunity but could be a necessity in the very near future.
Make sure you avoid making mistakes and benefit from getting help from specialists.
Step one: Be Realistic
If your business hasn’t gained enough success in your country expanding abroad would not be an alternative. You are growing your business because
- You’re selling and getting order from other countries
- By projecting over local market, the growth has dropped
You should also consider if your business needs your physical presence or not. If yes that would be a real barrier to expanding your business overseas.
Step Two: Think Strategically
You’ll need a toned, strategic plan, to see you through the tough times and convince important stakeholders along the way that you’re going to succeed. You should plan your finance mainly and think of factors like working capital, bonds, and credit insurance to reduce financial risks. To protect the business from variable currency rates, it’s better to take a foreign-exchange contract cause even the tiny changes can have a significant impact on your margins.
Step Three: Find a Local Advisor
To be honest to gain truthful and real information Googling is not enough. You need the expert, local knowledge and maybe even the support of someone who can connect you with someone who has already walked through the same or similar path you want to take and offer you their knowledge, Proficiency, and experience so you can repeat their successes and avoid their failures. Its minimum benefit is to have someone who understands your highs and lows and can help support you through the process.
Step Four: Research
Never Neglect the culture difference that exists in the target market country
Provide your product or service in another country to the same standard as in your country.
You should know if there is a market need for your product or service there and have enough knowledge about your local competitors and know the local suppliers. Then pre-scoping the cost of domestic production to know if there’s local human resource available
Step Five: Choose a model
There are several ways for expanding your business in another country
Opening a subsidiary
Acquiring or merge with an existing local business
Developing a strategic partnership
They could be through
Licensing, or sourcing a local distributor or provider
All of these have their own positive and negative points. You should take research to determine which option is the best for you and the chose an appropriate one.
After selecting a route to market, you can look for advice from the official Government body organizations set-up specifically support those activities
The first step to doing business overseas is teaming up a distribution deal. You can locate and discuss with a local distributor yourself or many businesses attend trade fairs where they can exhibit their product or service so companies who want to become their local distributor would find them.
After selecting your preferred model for trading overseas the next steps become a little clearer.
5 Steps to Grow Your Business Internationally