Expanding your business beyond the bounds of your home nation is a brilliant way to tap into new markets and diversify your offering. Sounds great, but taking your business global is easier said than done. If you’re on track to set up an international version of your e-store or a brick-and-mortar outlet, here are some key factors to consider.
Know the Market
International Expansion could be the best move you ever make. Or, it could be a disaster. One of the key deciding factors in this will be how well you did your homework beforehand. Even if your product was a hit back home, this success won’t automatically translate into instant sales in other markets.
The way people around the world receive and respond to new products is largely determined by cultural norms. It’s therefore crucial that you find out how your product is likely to perform in the target market before you take your product overseas. A slow uptake isn’t necessarily a sign of failure: a couple of tweaks to your product may be enough to attract your new customer.
Reassess Your Marketing Strategies
What worked before may not work in another area. While your marketing strategy might be killing it locally, you might need to overhaul your strategy in order to break into the new market. Of course, a few adjustments to your ad campaign may be enough, but it’s important to make no assumptions about what will work and won’t work. Be completely open to the idea that you may have to start from scratch, taking factors such as cultural norms and culturally specific forms of humor into account.
Understand the Local Economy
Investigate the state of the local economy before you take the plunge. If the economy in a country where you’re considering setting up shop is struggling, and consumers don’t have much in the way of disposable income, you may find it hard to shift your product.
Study Foreign Business Customs
Setting up shop in another country will inevitably involve important meetings with various people of cultural heritage that is different from yours. Cultural expectations and norms are completely different in different countries. Even if you think you’re being polite, you can risk coming across as unprofessional or rude in another country.
It’s important to remember that operating in a different country means that you should adjust your ways, not the other way around. Ignorance and arrogance will never go down well. Find out the right dress code before your first meeting, and don’t forget to learn what types of small talk are acceptable.
Whether you’re setting up your first international store or office, or you’re doing it for the tenth time, each time you enter a new market is going to present new and exciting challenges. These tips will help you prepare your business for the culture shock.