If your business has grown large enough that there is little space to expand in the domestic market, you should consider expanding into the global one. Doing so will allow you to leverage opportunities you otherwise might not be able to if you only focused on the local market. A global expansion requires planning, market analysis, and preparation to ensure it is successful.
Identify the Products and Services to Sell Overseas
Having products and services that sell well domestically does not mean the same will happen in the international market. Think about what the market you are getting into will respond to and focus on making that work. Doing so requires analysis, data, and people to help you ensure both.
Conduct Thorough Analysis
Conducting market research and doing the right analysis can help you understand which markets would work best for your business. While you can rely on secondary data, of which there is a lot, you should rely on primary market research much more. The available secondary data might not align with your business and only give you a general overview of what is happening in that market.
As you do this, you should hire an economist to analyze and forecast business trends. Market research will only help you understand what has been happening in that market and what is happening in it today. Economists, on the other hand, will tell you what is likely to happen in the future so you understand whether this would be a good idea. You should also seek out the services of a corporate or legal consultancy firm, such as Meridian Trust, that will be able to guide you not only through the intricacies of the offshore business creation process, but can also help you navigate new and unfamiliar legal and taxation landscapes.
Doing this will put you on a par with other companies like Amazon and Uber that hire economists to understand the markets you are trying to enter. If your competitors are not doing the same, you will have a massive advantage as you will be able to plan better.
Holders of Masters in Economics degrees have a huge advantage due to the demand for their skills and expertise at numerous levels. They can explore Masters in Economics jobs posted by the local government, tech firms, international companies, and expanding businesses like yours.
Test the Market
An understanding and analysis of the potential market should give you a lot of information on whether it could be viable for you. However, you should be on the ground to confirm this yourself. The best way to do this is by participating in industry trade fairs.
Here, you will meet your competitors, other players in the industry, and potential customers. Being face-to-face with them will help you gauge the level of interest in your products and services. If there is strong interest, you might have a viable market to expand into.
Research Your Competitors
You need to know who you will be up against once you start operations in the new market. Conduct additional research to know everything you can about your competitors, including their strengths and weaknesses, potential gaps, and how to beat them, whether through a better pricing strategy, product differentiation, or better marketing.
Expanding into the global market opens up new opportunities for your business, but it comes with additional challenges. Thorough research to understand the market and see whether it would be a good fit for your business and its products or services is vital. It is better to plan thoroughly than enter the market only to find it is not viable.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin