Tips On Finding The Right International Markets To Expand Your Business
For any business wishing to expand internationally, the first step is to identify the right market. International expansion can bring about vast opportunities for business growth and success, but it is important to consider potential challenges and be prepared for them in advance.
Through research and preparation, businesses can identify the most suitable markets for their product or service. Whether you are just starting to explore global expansion plans or have already begun to implement an international strategy, the tips provided below will help you make the most of the opportunities available and ensure you are prepared for any challenges that may arise.
- Find The Right Partner — When attempting to enter international markets, it is essential to have the right partner who understands the local market dynamics and who will help establish a mutually rewarding relationship. Building a long-term relationship with local partners is critical, as they will have an insight into promotion and sales channels.
- TAM And SAM Analysis — Conduct thorough market research and analysis to identify your Total Addressable Market (TAM) and Serviceable Addressable Market (SAM). Additionally, it is beneficial to find a reliable local partner who has knowledge of the local market and knows the best way to promote and sell your product or service.
- Customize Your Offer To The Market — When entering a new market, it is important to understand the market dynamics and specificities and customize your offer to the local culture and customs. This includes analyzing language barriers, cultural differences as well as purchasing habits.
- Cultural Differences — Cultural differences are a primary factor to consider when expanding internationally. You’ll need to assess how well a service or product will travel across borders and if it is necessary to change the way you go to market to ensure your brand is welcomed rather than seen as an intruder.
- Assemble An International Team — If you want to create an internationally renowned brand, you’ll need to tap into local resources to understand, enter and succeed in a foreign market. You can make this happen with the help of partnerships, alliances, and direct hires. Familiarize yourself with local industry associations and connect with influential people on their executive boards.
- Research The Country’s Language Knowledge — Before expanding, research the target country’s language knowledge and their purchasing power or GDP per capita. This information will help in determining your product’s penetration and absorption rate in the local market.
- Be Available Across Time Zones — It is essential to run a global business to be available across all time zones for your clients. This means having remote offices with local speakers in the target countries to ensure customers can engage with your brand.
- Value Of The Product — To develop a successful growth strategy, break down targeted countries into the regions, countries, or communities where you’d like your service or product to be offered. Analyze the cultural needs of each area to determine how your product or service can best meet their needs. Once this research and analysis are complete, you’ll be able to craft a global growth strategy that can be implemented with purpose.
- Understand Customs, Culture, And Desires — To ensure the successful expansion of your company into a new country, understanding the customs, culture, and desires of the people is important. Speak a language they are familiar with and research the differences before investing. Your presence should contribute positively to the culture and country while also meeting the need for your product.
- Market Research — It is essential to do in-depth research and be cautious when expanding into a new market. This includes researching similar products or services that have been successful or unsuccessful in the targeted area.
- Local Firms — Hire local firms in the countries you are expanding to understand the area’s makeup and ensure your brand aligns with local aesthetics and values.
- Create A Brand Standard — Before expanding, create a brand book outlining your standards and mission, approved logos, and fonts. This will ensure your international partners adhere to your brand standards.
- Do Research — You need to do your research. Take the time to learn the messages and marketing materials you’ll use to succeed with your international campaigns. Your current marketing strategy may not be the same in a new market, so research, test, and then implement.
- Adapt Your Business — You must adapt your business to new challenges as you expand into a new international market. Linguistic and cultural barriers may require you to take special measures to ensure seamless communication. Local laws may influence how you currently run your business, and you must take them into account when making changes. You may face financial hurdles like opening accounts in the new country, for which you should thoroughly research and plan.
- Cultural Norms — As you expand into international markets, you need to research the cultural differences and adapt your business plans accordingly. For example, a company successful in the U.S. may not be in Japan due to the different cultural norms of those countries. You’ll want to take this into account as you plan to monetize your business in new markets.