Going Global

Ten tips to help with navigation.

By Jennifer Spooner, Cross, Fernandez & Riley LLP, Orlando

 

One way to jump start growth and diversify your business is to find new markets and new clients. If you are one of the many companies considering going global, the journey into the unknown probably gives you a great deal of discomfort.

These tips should help you determine what you can expect and whether you are up for the challenge:

1. Everyone must be on the same page. Make sure that all the stakeholders buy into the plans for expansion and that you introduce them to your organization’s culture. Once you have everyone on the same page, forge ahead and don’t look back. Be diligent in each step, and commit to learning from the process, however painful it may be.

2. It’s a long-term process. Going global isn't a race, and the process takes time. Make sure your expectations are realistic, and realize that this undertaking will be significant. You will not reap benefits overnight, and the experience may involve a great deal of learning through a series of setbacks and challenges.

3. Be strategic. Why do you want to expand internationally? What is the driving force? What will happen if you do and if you don’t? Make sure the decision isn't based on individual opportunity or opportunistic deals in foreign markets. International development needs to work with the company’s overall strategy.

4. Do your homework. Consider all the factors and every possible scenario. It takes time and effort to study all the factors and think through everything you will need logistically to enter and sustain a new international market. What financial, IT, administrative and human resources do you need to consider? Will there be costs associated with shipping, human capital, employee benefits, translation and foreign transactions?

5. An economic downturn shouldn’t slow your plans. Rather, it might actually be the driving force or opportunity for you to expand and grow. You can benefit from favorable exchange rates, and a successful expansion will add to the value of your business overall.

6. Where is the opportunity? It’s easier to expand into familiar territory, where you may have the right connections and/or no language barrier, but is that the right market for your goods or services? What is your competitive advantage in other markets and the purchasing power of their populations? Create an expansion list of potential countries and learn everything you need to during your research phase.

7. Is a physical presence necessary? Do you need a physical location in the new territory? Can you reach a global marketplace through technology? Do you like to travel abroad, and can you handle the cost, difficulty and/or exhaustion of doing so?

8. Model it out. What business model will you use? Conduct financial modeling as well as intensive marketing research and analysis within the markets you have selected as top contenders. What will the costs be for supply, labor and real estate? How will your operating model look different offshore than it does at home? What are your risks?

9. It's a small world with big differences. Be clear about your intellectual property, legal and channel strategies. What trademark opportunities do you have, and do you understand the laws governing the marketplace you want to enter? Will the cultural differences hinder your opportunities?

10. Ask for help. The right partners can make or break your success. Do you have strategic partnerships that can help you coordinate efforts through the unfamiliar? Do you know experts who can navigate your expanding business and work with you to facilitate business dealings?

Tags: marketing