You’ve found some success in your local market and, now, you want to take your business to the global stage and compete with the big players. If you’re hoping to expand your reach beyond your own country’s border, here’s the next step:
Search for a Foreign Exporter
Finding a business partner who can help you expand to other countries may be one of the toughest challenges you have to face in your quest to go global. However, once you found one, your job will be a lot easier.
Once you ship out your products through an American or European haulage to another country, the foreign distributor will resell your products for profit within their respective domestic market. The foreign distributor will also be responsible for marketing and providing customer service.
First, find potential foreign distributors. Look into foreign companies that have local representatives assigned to your own country or find a list through trade groups. You may hire an international business consultant to guide you through the process and help you select the foreign distributor that you should trust to bring your products to the global market.
Is Your Product Ready For Expansion?
However, before you start, ask yourself: will your product be received well in other countries? First, prepare a market segmentation analysis to predict how your product will perform in markets that are completely different to what you are used to. Unfortunately, what works in your country may not work in another market.
From here, develop a business strategy. Many small businesses make the mistake of not having a business strategy that may address and avoid future problems and challenges.
Define you short- and long-term goals and develop a realistic success metrics.
What About Competition
Will your product be the first to satiate a demand, or are there other companies already doing similar things? If you have a potential competitor, you have to, first, learn who they are and their hold on the local market. Foreign countries have different competitive landscapes that you should thoroughly understand.
Come up with a detailed competitive analysis for every market that you want to penetrate.
Learn How to Navigate International Compliance and Regulatory Requirements
Determine whether there are packaging, labeling, and other requirements that you will need to follow. For example, labeling may need to be translated in the local language in certain markets.
Test The Waters
Take advantage of trade shows to gauge how warmly local consumers will welcome you and your products when you officially launch. This will also be an effective way to advertise and start establishing your brand’s reputation since you are starting out again in another market.
Another strategy is to push your products first to a market with low entry barriers. For example, Canada is an ideal stage to test products from an American company because of the geographical proximity and similar language.
You, as the business owner, will be facing a lot of challenges ahead in the quest to expand your business. The process will not be easy and, despite efforts, there is no guarantee to success. The best you can do is to know everything you need about foreign markets and work harder than you ever have.