September 30, 2017

Five (5) Ways To Know If Your Business Is Ready For Global Expansion

AUTHOR BIO: Henri Hazougi is Serial Entrepreneur and Business Strategist, he's is the managing Director/Partner of Business Setup Consultants DMCCThe company offers a broad range of expertise in corporate services assisting companies and entrepreneurs in setting up and expanding their business in the UAE.
  • Five (5) Ways To Know If Your Business Is Ready For Global Expansion 
Expanding one’s brand overseas is the ultimate goal of any business. Achieving international brand recognition is one of the best ways you can be certain that you’ve reached the top. Once you have a new business in Dubai, London, or in any of the foreign cities open to global ventures, you’ll know you’ve made it and there’s nowhere else for your business to go but up.

As an entrepreneur, making the decision to open a branch abroad is something that you should never take lightly. You can’t just wake up one day, hop on a plane, and search for the perfect office space. You need to be 100% sure that you’re ready and that your business has what it takes to succeed in a different country.

Gaining Entry Into An International Market

How can you determine if your business is ready to break new grounds and enter a foreign market? Here are five ways to do so:

1.     Your business is at its peak or enjoying stability

Before you even get excited at the thought of having a branch abroad, consider the status of your business now. Do you have a solid client base? Is your business enjoying a steady flow of income and profits?

Expanding your business overseas will be costly. Even if you plan on getting some investors, you will still need money to fund your travels, put in for your share, and fulfill other expenses.

In addition, it is important to be certain that your company is indeed stable and can be run by people you trust while you are away. Remember that when you have plans of opening a branch overseas, you will be traveling often and you won’t be able to personally keep a close eye on your business at all times.  You have to make sure that even if you’re not in your office or you can’t make important decisions quickly, your business will still run smoothly.

2.     You consistently receive international queries from interested customers

One of the most positive signs you should look out in establishing if you’re ready for global expansion is when you get a lot of inquiries about your products or services from other countries. If you get consistent queries, you know that there is a market you can tap into and it is highly likely that your business will succeed.

But before you start learning about acquiring a trading license in a foreign country, conduct some research first and find out why you are getting queries from that location. You need to understand if the interest will remain the same if you have a branch in that country or if you can sustain it through other ways.

Keep in mind that having global appeal is a key consideration for having a business overseas; however, it is not the only factor or reason.

3.     You have already done sufficient research

Although you may have a ready client or customer base, you still need to do some additional market research. Analyze local spending habits and know how much time, energy and capital will be needed to enable you to market your products or services. Consider the overall cost of hiring and employing local employees and understand what the work habits are like in the country.

You can ask consultants to conduct surveys to get an assurance that all your efforts and investments won’t go down the drain. You can also consider setting up a trial run to find out if there is a market for your business. Bear in mind that you won’t get anything good from rushing to expand your business without studying the new market.

4.     There’s no room for expansion in your home country

If you already have enough branches to serve customers or clients in nearly all areas in your home country, you can start thinking about expanding elsewhere. This is especially true if you think you’ve reached that plateau and will have difficulties adding more to your current consumer base.

However, make sure you don’t overvalue your worth. This is because even if you’ve been successful in your home country, it doesn’t mean everything will fall quickly into place overseas. A market research will help you determine if it is worth your while to expand internationally.

5.     You have the capital

Lastly, before taking the leap and expanding your venture overseas, make sure you have enough funds to sustain your current branches or offices. You also need to have sufficient finances in place to secure your new branch’s success.

When you open a new store or office, you may not see any profits or even ROIs for the next several months.  As such, you need to allocate adequate funds to sustain business operations until then.

The thought of expanding globally can really be exciting. However, it will also require a lot of time, energy and financial investment on your part, especially during the market research and planning stages. Make sure you are prepared for all the hard work and financial undertaking required so that you can also find success in the foreign market.


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4 comments:

  1. These are helpful for entrepreneurs!

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    1. Thanks Ann for your contribution, your contributions are always welcome here. Kindly share this post with your friends on Facebook, Twitter, LinkedIn, Google+

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  2. Cool! These are great tips for those at that level.

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    1. Its really a great tips Sarah. Thanks for sharing your thought

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