7 Useful Tips on How To Penetrate a New Market
Taking your business global can be an exciting milestone for you, your customers, and investors. It merely proves that your business is doing well enough to afford to take the global leap. Opening an international office presents the prospect of more revenue and investment opportunities. Hence, it would be best to prepare yourself and your team to the teeth with marketing strategies, legalities, and operational tactics to make it a success.
While going global is encouraging, it comes with it several challenges and opportunities with equal measure. Because you’re opening an overseas office, you’ll need to be cognizant of the foreign land’s policies outside your natural boundaries. International policies can be a headache, and if you’re not careful, you could inadvertently put your business at some risk. That is why you should seek help for your offshore company formation from agents or firms that will mitigate these risks and bolster your business.
There are ways to penetrate the global scene. First, if you’re opening a sister company – a business with a different specialty from the parent company. Second, a subsidiary company. Either way, you will experience both the upsides and downsides of working on foreign soils. However, you can mitigate these challenges by partnering up with experts who are familiar with the country.
To give you a head start on what you need to get started abroad, here are a few tips to consider:
Regulations and Policies
Countries have differing regulatory policies for companies operating in their soils. These policies comprise local laws, import and export laws, taxes, and so many that you need to consider to avoid legal problems seriously.
Researching these laws and regulations on your own can be cumbersome, not to mention risky, because you can misinterpret or overlook essential things. Therefore, you’ll need an expert to take over your business’s financial, administrative, and legal aspects. To be of significant support, the expert should have voluminous knowledge of your target country’s policies and regulations. More so on their impact on your business.
To set up in a foreign country, you’ll also need support in communication and administration know-how. Unfortunately, language barriers can render communication futile. Luckily, an expert can help you maneuver language barriers by suggesting trustworthy translation firms.
Additionally, you’ll want to take advantage of policies that favor your business, and only an expert familiar with the country’s policies can be of assistance.
You will require business permits, licenses, and other requirements to make your business legal and licensed to operate. Seek out an expert with knowledge and experience in such requirements to be safe.
Since countries have different tax systems and laws to abide by, an expert should be equipped to help you navigate and abide by these laws as a preemptive to litigations and other legal offenses.
New policies will also affect your marketing approach. To know which marketing strategies to employ, you’ll first need to know which regulations affect your business. From there, you can determine how best to do marketing without pushbacks.
Another consideration is the currency available in your target country. This shouldn’t be a big worry because there are systems in place that can streamline currency conversions, so your customers can convert currencies in their checkout.
Currency conversion is as severe as losing thousands in cash. Therefore, you want to do extensive research about the type of converters convenient for your target audience. Ideally, the converters should cover the most critical base; shipping and taxes. When your customers are checking out, the convertor should automatically convert their currency to eschew confusion that would push the customer to abandon his/her order.
An automated conversion system on your website will not only make this easy for your customers, but you’re also protecting yourself from losing money in manual conversions.
You could have everything set for your business, but if you’re still experiencing language barriers with no practical solution, it could paralyze operations. Many countries have a common language, mainly English which you could say is an international language. However, other countries do not and cannot speak English. Such countries only ever communicate in their local languages.
Because it is essential to involve the locals in your business, you’ll need a translator to lift off the barrier and streamline communication. Of course, you won’t have time to learn a new language; that’s why a translator should be your go-to.
It’d be best if you partnered with a translating firm to offer in-person and website translations. If you have multiple offices in different countries, having a change of language option on your website will be convenient for your customers.
You cannot get the ball rolling without human resources in place. Why? You need workers to carry out the daily operations, conduct marketing, respond to customers, and other necessary works. You cannot do all these by yourself; it’s simply impossible.
Regardless of the hiring strategy you incorporate, the bottom line is you need talent. People who understand your business, the target audience, and how to impact your business. With that said, local talent is your best bet to have a successful foreign company.
For one, local talent doesn’t need constant translations as they are part of the local culture. Secondly, local talent understands what the people need, how to communicate your services/products, and what marketing strategies would work on the market. Three things that you will get for free if you hire local talent.
As a bonus, hiring local talent gives your business an advantage – the locals will love you and support you because you didn’t overlook their talent. Locals everywhere love to be involved in new projects, especially foreign projects.
Before deciding on which country to expand your business in, you need to do thorough market research. I’d be a disservice to yourself if you blindly picked a country for reasons other than your business’s potential to offer solutions to existing demand.
Your market research should consist of all factors that would make or break your business. For instance, is the need for your product/service enough? How likely are your target audience to purchase your services? Who are your competitors? And how’s the political environment?
Extensive market research will provide you with all the facts you’ll need to make an informed decision. Additionally, it’ll help you plan to introduce your business to the locals and other useful practices to garner support from the locals and authorities.
Besides, market research will give you credible information about your target customers. Information like what platforms are famous for consuming information, the preferred payment methods, what customer relation activities are efficient, and many more.
Going into a foreign country requires you to know some cultures, so you don’t end up unintentionally offending anyone or being unpleasant. You could tarnish your reputation if you ignore local culture, and this might extend to your business.
So, what should you do? Think of what you’d want other people to know about your country before doing business with them. This thinking line will help you generate what you should know to appease your target customers and the locals.
Consider the holidays, local traditions, religions, and values upheld in the country. Once you familiarize yourself with the culture, work on adapting them to your business and schedules. You don’t want to open your office during a memorable holiday and expect your employees to come to work. By doing so, you could instill employee resentment, which is bad for business.
Adapting to local cultures proves you’re interested in the culture and respectful enough to want to be part of it. You’d think this is pointless, but in reality, such gestures create lasting impressions of your reputation and business by extension.
Operational logistics are what you’ll need to get your foreign business running. If your business is e-commerce based, then your logistics might be less than if you need a physical address.
For starters, you will need an office, furniture, equipment, and tools like printers depending on your business niche, internet, cleaning services, etc. These logistics are what you will require daily to have smooth operations, so you should have them in place in time.
Planning before opening your new business will help in cutting costs and saving time. Moreover, you will be capable of running the business more effectively without thinking about logistics.
It’s not uncommon for a new business to share office space with existing companies to cut on costs that come with logistics. However, sharing an office can prove exhausting and ineffective because of the other company’s unavoidable collisions.
Consequently, having your own office space is the best option, and to make it even better, you’ll need to have your logistics ready. Your transition to a new country will be more comfortable, and your operations will streamline with these logistics in place.
To wrap up, globally expanding your business is outstanding, and you should pat yourself on the back. Like many businesses, there are challenges to expect and means to mitigate them. The above tips are meant to help you gain ground on what it means for your business to go global. Considering the above points, you should have an advantage in building a winning business in a new country.