Have you ever considered to take your business overseas? This year might be the year when your business has rooted itself so far into the ground that you are ready to move overseas.
Moving your business across the pond is a huge responsibility and can change the way your business world forever. It is the ultimate way to expand and develop your business so that it becomes world famous is to unleash it on the world. It’s simple!
With the growing number of entrepreneurs trying to cement their place in the market these days, it can become a little cramped and this means that not everyone has the opportunity to shine. Because of this, for many businesses, the only way to get ahead is to work overseas.
There are many different advantages to expanding your business overseas:
- You will be able to extend the sale life of your products by selling them onto new markets
- You can spread your wares and make sure that you are not dependant on just your home market.
- If your country’s market cycle hits trouble, you won’t suffer too much because you will be able to exploit other countries instead. It means you will have financial stability during the year.
- You can exploit lots of different technologies by working overseas.
- You can learn how to compete with foreign companies and this will help you greatly develop your business skills.
Of course, all of these reasons are great enough, but the main reason which people will decide to go global is to improve business potential and develop and grow.
The world is a huge place so there will always be an opportunity to seek your products to new markets. By the time you have expanding to one country such as the U.K., Canada or Australia, you will notice new up and coming markets to take advantage of.
Expanding overseas will give you a never-ending opportunity to keep growing and becoming more popular in the business and consumer sector. It will offer you a chance to keep expanding and expanding throughout your career.
Things To Consider Before Expanding
Will your product sell well?
The first question you will want to ask yourself when thinking about expanding to another part of the world is whether or not your product will sell in a country with a different culture.
For example, if you enter a country in which many are vegetarian, you will not fare well trying to sell burgers.
Do your research on the people you plan to sell to before you try to expand.
Do they know what the product is?
Another thing you will want to think about is whether or not your target audience will know what the item or service even is.
It could be that the product you plan to sell currently doesn’t exist in their market- and because of this, you will need to invest a lot of time into educating your market to what the product does.
Promotional videos, blog posts, and other tutorials can help greatly with this. If you are wondering why you should bother teaching them what the product is, you have to think of the fact that this product could become a best seller and synonymous with your brand in that country.
Take the opportunity to be the sole supplier of your product.
Are you comfortable in the country?
When you set up a new part of the business in another country, the chances are you will have to visit there a lot and you may even have to live in that country for a while.
Because of this, make sure you choose somewhere you feel safe and which you are familiar with.
How is their infrastructure?
One of the things which you may not think of immediately when scoping out business opportunities is whether or not this country has the same resources as you.
Think about what food and water supply they have for you working, and find out if they have food suppliers and freight options for importing goods to the site.
If you are working to import goods from a harbor you may need to see if they have cranes for sale and containers which are large enough for your items.
Take the time to research all of the logistics in the country to find out if it is a viable option or not.
To start your campaign to take the business overseas, you will need to make sure you conduct research.
Have a meeting with your board to discuss the possible countries which you could look to expand to.
Once you have a list you will need to narrow down the options by carrying out market research on the country, as well as seeing what their economy is like, their culture and deciding if there is room for you in the market.
Take your time with this stage of planning because this is the most important decision you will make.
Think about your product and the materials you currently use to make it.
Some countries such as the U.K. have stricter regulations on materials than the US, and because of this, you could find that you cannot export your goods over there.
If you do find that this is the case you have two options: either find a replacement material for your manufacturing process in the US or take the manufacturing overseas to the U.K. instead.
You will need to weigh up the costs of exporting the goods versus you simply manufacturing. Start your campaign them from scratch in another country.
When you have perfected your manufacturing process it is time to look at how the products will be distributed overseas.
Think about what you want to do and whether or not you will sell directly from yourself or through a retailer.
You could look to open stores in the foreign country where you can sell products directly to the consumer, or research retailers and get in touch to see if they will distribute the products to you.
Although distributing through a retailer will be an easier way to handle the situation, you will lose out on some of the profits so you need to decide which is better for you.
Once you have decided on the country and began to research a factory and office space for your business, you will have more things to start considering.
The first of these is how to set your prices for the new part of the business.
Depending on how you end up manufacturing your product for overseas sale. It could cost you more or less than it does at home. This will affect the price you will want to sell the item for overseas.
Take into account the exchange rate in your foreign country and also think about shipping costs overseas if you are to export the goods.
Many companies which offer online shopping worldwide will simply leave the prices the same but change the shipping cost depending on the country. This can be the best way to ensure you make the best profit you can out of shipping across the world.
Hire a lawyer to help you with all of the legal issues surrounding opening a business overseas. You may need to adhere to different tax rules and also there will be registered to undertake in order to be a legal business in a foreign country.
This can become confusing if you try to do it all yourself, so it makes more sense to let a professional handle it all for you.
When you decide to ship items overseas there will be considerations involved in the way you package and label your goods.
Different countries have different regulations when it comes to the packaging and handling of items. Because of this, you need to make sure that you label your goods correctly if they are to be accepted by the postal company in your target country.
The final thing you will want to consider is understanding another culture and being able to market to them specifically.
The world is a diverse place, so you cannot assume that everyone you sell to will hold the same values and opinions as you.
Bear in mind that people live in different states of poverty, people practice different religions, and they live in completely different landscapes to you.
You will probably want to visit your target country a few times before you decide to sell there to ensure that you get a sense of the people who live there and how they live their lives.
Learn the language, eat the food and observe the religion. You may find that your product is obsolete in this country due to the way they live their lives.
Immerse yourself completely into the lifestyle of this new country because it could give you inspiration on a product to sell to them or even one you want to create specifically for them, it will help you to be the best you can be and develop successfully as a business overseas.