Expanding Your Small Business Internationally

When running a successful business, it is highly likely that you will search for ways in which to move your business forward. One of the most sought after ways to grow a business is to expand it into international markets. With technology forever evolving a lot of the previous barriers that hindered such expansion have neigh on disappeared.  Has your business got what it takes for this next step? And are you prepared?  Find out whether your business is ready for international expansion and consider the options of doing it.
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Signs Your Business is Ready for International Expansion
1.     You are receiving international requests or enquiries. If you find that you are getting an increased volume of enquiries from potential customers overseas about your products or services, there’s a good chance that your services or products are in demand and an indication that your business could potentially expand internationally.
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2.     You realise new products or services may do better (more profitable) in other markets. Perhaps you’ve received requests for a new product or service from international customers that in comparison may fare better in their market than your own or, fare just as well.  If you feel it is appropriate and the timing is right, consider the opportunity to test this new service or product initially without fully jumping in feet first or putting all your eggs in one basket!  Research and due diligence is the key here and no new venture or decision should be made without either.
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3.     Your business is going well and you’re looking to the future. Knowing your business has been doing well for quite a while and realising that it might continue flourishing or could ultimately slow down is a sign that you should consider alternative revenue streams for your products or services. One of the possible ways to do this is to expand and take your business into the international arena.
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4.     You have saturated the local market. If you notice that your sales have been pretty flat or indeed down on previous periods / years and all marketing efforts exhausted, it may be the push needed and the ideal time to look further afield for new business opportunities.
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How to Expand Your Business Internationally
1.     Create an international business plan. Determine why you want to expand your business internationally and develop a strategy to enter foreign markets. Keep in mind what additional costs you can expect, as well as the amount of revenue you plan to allocate to the effort
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2.     Identify potential markets. The first step in expanding your business internationally is to do research on countries where you might consider expanding your business to, whilst deciding which have the greatest demand for your services or products. You may want to look into developed countries that have a heightened need for your products or services as well as developing countries that may not currently have the products or services you readily offer.
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3.     Know the legal requirements. Make sure you know all of the rules for exporting your products or services internationally. These can vary greatly depending on the markets you are hoping to expand into so, research, research is the key!
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4.     Determine the capabilities of your business. Be aware of what capabilities your business has for expanding internationally. Make sure you understand which of your services and products have potential for success overseas. Also, bare in mind the strengths and weaknesses of your business and its potential growth rate.
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5.      Choose which international markets to enter. Once you have a good plan in place for expanding your business and feel that you are ready to take the plunge, select the markets you want to enter and get yourself ready for international expansion.
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Pros of International Expansion (to name but a few)
1.     Expansion and growth of potential customer base
2.     Spreads risk by customer diversification beyond local market
3.     Provides firsthand experience and awareness of how international business is
conducted
4.     More cost effective running costs
5.     Worldwide status and recognition
 
Cons of International Expansion (to name but a few)
1.     Insufficient research or due diligence which could result in unexpected risk to
currency fluctuations, or political instability in some international markets
2.     Disruption of cash flow due to payment delays
3.     Potential for lost or damaged goods in overseas transportation
4.     Foreign regulations and standards
5.     Increased operating costs ie additional staff, specialised transport networks etc
however hiring a virtual assistant could turn one of these Cons  into a positive.  See virtual assistant services for a solution to that problem.
 
Ultimately, with the right focus and commitment, businesses can succeed in the global marketplace providing they do business with secure trading partners regardless of where in the world they are located