10 Key Components All Global Businesses Need to Succeed
If you’re a successful domestic business considering international expansion, this article is for you. Discover 10 elements of successful global businesses.
Expanding internationally can be a complete game-changer for small businesses. And more than 70 percent of small businesses plan to build out their international customer base.
But doing it the wrong way can turn opportunity into disaster.
There’s no need to worry. We’ve nailed down the keys to expanding a small business into international markets. Read on for the top 10 elements of successful global businesses.
What to Consider in Launching Global Businesses
First, what are the advantages of a business going global? Here are some reasons expanding internationally can drastically improve a business:
Extended Sales Life
International markets let businesses tap into new pockets around the globe. That means they can stretch the life of a product that might have reached its potential in its home market.
Less Reliance at Home
This means the business will be less exposed to the whims of one market. That also can let a business pick markets that work with their business models.
A Chance to Highlight Expertise
Not all international markets have been exposed to the same level of technology or corporate experience. That means businesses can find a big edge in developing markets.
But there are still some hazards businesses should keep an eye on when expanding internationally.
What to Watch Out For
Doing business overseas can have a big upside, but there are some common pitfalls companies should keep in mind:
Global innovations and new technology are inevitable. And these will hit some markets faster than others.
That means it’s a good idea to be ready for changes in technology. And it’s smart to know how local politicians might regulate things like AI.
The Global Economy
Expanding internationally can open a business up to new markets, but markets are still linked together. That means a big crash in one market could spill into surrounding systems.
Cyber attacks have risen drastically in recent years. And company expansion can mean more exposure to threats.
It’s a good idea to lock down important documents. And business owners should know the possibility of state-sponsored attacks in new markets.
Savvy owners will keep these potential dangers in mind as they dive into global businesses.
Here are 10 keys to successfully expanding internationally:
1. Work With Local Experts
They know the terrain and can help navigate potential legal disasters. That means the business can avoid setbacks early on.
It’s a good idea to tap into local experts to make sure the business will abide by local labor laws or other regulations. This could save in fees down the road and keep from ruining a business’ reputation from the get-go.
2. Be Open to Learning
Expanding internationally usually means new travel experiences, new languages, and new cultures. That means being flexible and doing things a bit differently at times.
Business owners can avoid frustration by taking these new experiences as learning opportunities. Always ask the question, “How can I use this experience to better my business?”
3. Research Local Networks
This means learning about local partnerships and understanding what companies have built alliances. The more a new business can build up their own local allies the better.
These groups will know what’s worked and what hasn’t. And that can save big headaches for a business that’s new to the market.
4. Be Pro-Culture and Know Local Traditions
Not knowing local expectations can be more than just embarrassing. It can destroy a company’s reputation and drive off customers.
It’s a good idea to figure out how a company’s brand can work alongside local traditions. And the more locals can be involved with the brand, the less foreign the company will feel to consumers.
5. Consider Currency Costs
It’s a good idea for global businesses to work closely with local financial organizations. Consider the costs of currency exchanges. And it’s crucial to know how much and how often those currencies bounce around.
Knowing currencies well will be a lifesaver, especially when negotiating local contracts.
6. Get to Know Local Transportation and Energy
Transportation and energy can completely change the way local customers view a product. And they can shake a company’s bottom line. For instance, free shipping might be unrealistic in areas that haven’t developed.
Since infrastructure can be drastically different, it’s a good idea to know how to adjust a business model to fit the local population.
7. Dive into Political History
A sudden political shift could end up completely cutting out a business. That means global businesses should know the stability of local political systems.
It’s a good idea to pour over the region’s history and talk to local experts. This will provide owners with a good idea about the area’s political stability.
8. Forget About Home Markets
Expanding internationally is more than taking a winning recipe at home and moving it to a new location. New markets often have new customers with different references, cultures, and tastes.
Make sure to research the area and test out products in the new market before the big launch.
9. Start Branding Right Away
Creating a global brand is all about exposure. That means starting early and often.
In markets where the product is new, this could result in powerful brand recognition. For instance, locals might end up tying the product exclusive to one company’s brand.
10. Know When to Teach
The quality of a product doesn’t amount to much if the consumer doesn’t know how to use it. Introducing a new product to a new market can have big rewards, but it might require a little teaching.
Be prepared to explain and demonstrate the value of a product, especially if it is fairly new to a market.
B2B Solutions for Global Businesses
These top tips for global businesses should put companies on the road to international success. And we’re represented in more than 60 countries and here to help.