How to succeed in international growth
Companies facing times of stagnant results tend to see increased value during international growth. In fact, businesses that expand overseas experience nearly 10% more revenue growth per year than their counterparts that stay in a singular market. How to succeed in international growth
Taking your company into a new country diversifies your revenue stream and leads to higher potential net profits. In a survey of international business growth, one out of five companies that moved into global markets experienced enough growth to offset negative returns experienced in their US operations.
If you’re ready to benefit from international growth, take advantage of our tips for executing a successful global strategy.
How to succeed in international growth
-
Research your target market
This is perhaps the most important step in the process. Researching the local market will help you understand whether it’s a good idea to enter a specific country. Strategic research on the potential customer base and current market conditions is just the beginning. We recommend you ask two important questions:
What kind of local adjustments will you need to make (and what will they take)?
Are there any local legal limitations to your product or business model?
The answers can make or break your decision to move forward with the expansion.
-
Develop a Strategy and Business Plan
Each market has its own nuances due to economic, cultural, governmental, and market conditions. It is important to develop a localized strategy and business plan that drives local success while remaining integrated with the overall corporate strategy and objectives.
- Define short-, medium-, and long-term strategy. Set reasonable goals to measure progress and cost/benefits.
- Define goals, objectives, and success metrics.
- Complete the business model and structure. Decide if you set up a separate company, a branch, or a sales office.
- Develop a top-down annual budget.
- Develop a tactical project plan with commit dates.
-
Hire the right people.
While you don’t necessarily need a local office in every country you operate in, it is important to hire local employees who also can speak your language. It’s especially crucial to hire a local employee for every new target market and this person should have a deep understanding of the culture and market so she or he quickly can identify product tweaks or customer experience aspects that must adjust for the environment.
-
Let mistakes happen
Global expansion is a tricky process, even for companies that have taken time to prepare and do their research. It is important for companies to give themselves and their international team time to learn the ropes and adjust to the new dynamic. Allow time to nurture and empower an international team and avoid becoming a “helicopter CEO.” Instead, understand that obstacles will arise and know how to approach them when they do.
International expansion is fraught with risks and challenges. But this strategy also can introduce you to a new customer base with the potential to grow your business even further. Work out the costs and benefits during every step of the process so you can choose a direction that will benefit your organization in the long run.
