There a many possibilities to expand abroad. But are you ready?
Determining whether your company is ready to start expanding abroad is crucial.
According to one of the studies from the International Marketing Review 90% of the companies aren't prepared enough. The outcome: disappointing results or even withdrawal from the foreign country. And considering that starting up business abroad will cost between US$ 100,000 - US$ 400,000... That's a lot of money wasted...
To give you a kickstart, a comprehensive checklist for your business to do a first check whether you are ready or not:
- Study the market
Is there a demand for your products at the price you allow for you to get a profit margin? Who are the competitors and how will they react?
- Implement an export strategy and review your capabilities
What would you gain and lose in your business if you export?
- Develop an export plan
Define how to enter the overseas market, develop a marketing strategy, investigate the extra human resources and allocate an adequate budget to cover the costs of kick starting the export.
- Choose your trading strategy to enter the country
Decide if you need to sell directly. Or maybe a broker or a dealer would be more efficient.
- Promoting your product
How are you going to sell and publicise your product? Adapt your marketing strategy to the target market.
- Know your legal obligations and requirements for export
You must know what will cost in terms of legal and import requirement to market your product in international market.
- Ensure compliance with payment deadlines
Make sure your cash is kept at a safe level. Generate enough funding capital for future operations. Take out insurance if necessary to safeguard your funds.
- Choose your distribution channels carefully
Remember the implications of selling over long distance and outside your borders.
- Transports goods efficiently
Choose the most appropriate means of transport and check that the goods have been insured by you or by the importer.
- Follow-up after the sale
Keep the link with customers, exporting agents and banks. Watch for possible political unrest or other adverse situations that may arise. Properly manage after-sales service.
So are you ready to enter the new foreign market? If all above mentioned 10 Keys are in place, you may safely conclude that you are ready to break into the foreign markets without unexpected setbacks. All the mentioned keys are checklists you need to examine to know the level of your readiness in entering into international markets.
Test where you stand
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Do you have other ideas that you have put in place to define your target market?
We want to know! Please drop an email so we can improve these and other checklists to support other businesses better!