Thoughts on SMEs Seeking Global Expansion
Some companies are better suited to the export markets or international expansion than others.
Growing a worldwide marketing consulting or management training firm, for example, will present quite different obstacles than opening a manufacturing facility or establishing a fast food chain on another continent.
Doing business overseas might be straightforward, depending on the territory. However, for SMEs considering expanding into new areas, there are a few essentials to consider.
👉 Don’t overcommit and make sure your timing is correct.
Depending on their business strategy, many companies begin by serving a certain market remotely, allowing them to test the waters without investing in local infrastructure or devoting too many resources.
There may be good indications of demand and future development potential at this stage, but be mindful of going all-in too soon. Especially if that commitment requires capital and diverts attention away from more obvious successes in your own market.
👉 Know your target market
Quite often, adjustments for export markets are necessary, which might otherwise be missed. It’s not simply about cultural or linguistic variances in your product or service and how they affect your consumers. Or even local regulatory protocols. The nature of your competitors, as well as how your business is viewed locally in comparison to the competition, will frequently be different.
👉 Mitigate risks
A foreign market generally has more variables. For example, what are the implications of currency changes for your business, even on a basic level? Or are the local laws ambiguous, or are they liable to change at any time? Make certain that you have identified as many possibilities as feasible and that the primary risks have been minimized.
👉 Don’t be scared to collaborate — but do it correctly!
Finding a local partner, whether for distribution, sales, or legal and regulatory compliance, is an apparent method to alleviate some of the risks associated with entering a new market. Local partners can be important to your success, regardless of the gap they fill. Determine this ahead of time.
