How to Expand Your Business Globally
Posted on: July 4th, 2014
Five important points to consider before embarking on your business expansion plans
In today’s global economy a business can face competition from anyone in any corner of the globe. This may have left you wondering about the need to expand your business on a global scale.
However, before you embark on a business expansion plan, it is wise to consider the following pointers.
Determine if your products and/or services are a fit for the global marketplace:
This is the first and most important point to consider. Ask yourself questions like, “How will my product/service be accepted by the global market?”, “What is the scope of the particular product/service in a particular country?” and “Will supply constraints or technological advances render the product outdated in the future?”
Choose the best possible business model:
You may choose to enter a foreign country through any of the following ways: exporting, importing, joint ventures, licensing or offshore production. Whatever may be your preferred mode of choice for business growth, be sure to weigh out the pros and cons of the particular business model and check to see how it will translate in real world conditions.
Research your target market:
Similar to establishing a new business, business expansion also requires a considerable amount of research. While high demand for a particular product or service might be a good lead, other factors such as environmental requirements, manufacturing guidelines, distribution networks, etc., of the target market should also be considered.
Put together a sound business plan:
More often than not business expansion at a global location equates to setting up of an entirely new business plan. Your new plan should take into account a number of factors including, potential markets/sources/customers; business funding (both for initial and subsequent cash flow); legal, regulatory and licensure requirements; Import/export pricing strategies; sales model, additional costs, etc.
Seek professional advice and assistance:
One size never fits or works for all. Since every company and market is different, it is always prudent to seek professional advice. Connect with the chambers of commerce, trade alliances and local Small Business Administration (SBA) offices in your area. Seek the expertise of a reputed financial services firm who can advise you on the best business funding options, and work with you to develop a good business plan.
Attract Capital, a financial advisory firm dedicated to the business growth of mid-sized companies, can help your company with its business expansion plans. Our advisory services are aimed at providing sound financial solutions for your various business needs. Contact us today.