Even though planned expansion is beneficial particularly for small business owners, some of them choose to avoid them in order to maintain a close contact with employees and customers, enjoy the freedom of not having to deal with administrative management and stick with the autonomy provided by sole-proprietorship.
For others, however, starting small and going big represents their main objective in the first place because it allows their business to reach maximum potential, which refers to seizing favorable financing opportunities, promoting the products or services sold to a wider audience thus leading to increased profitability.
The methods of growth differ, from the acquisition of another business (smaller, obviously) and sharing ownership with other entrepreneurs to joining industry cooperatives and sharing licenses with third parties. No business owner should pursue any of these methods without evaluating the strengths and weaknesses of his company, but most importantly, its needs. Otherwise, he might soon encounter expansion problems like not being able toor monitor cash flow, not maintaining quality customers service due to personnel issues.
Steps to follow when expanding a business globally
The benefits of business expansion are undeniable and involve building value for customers and employees, enjoying better brand recognition and offering goods to a larger geographical market.
The process of expanding globally requires completing some logical steps, which involve understanding the impact of expansion on your business, developing a business plan and a calculated strategy, create a beachhead team, preparing the product for the foreign market, staying organized from beginning till the end, inquire about legal requirements and the economic status of the specific country as well as determining if you – the business owner- would feel comfortable living for a while in the respective country.
Our advice is that, if you are trying to penetrate the Indian market, for instance, you should take the necessary documents including the, pack your bags and go to a business trip to explore the language, culture, and customers personally. Analyzing something with your own eyes is different than just reading a report someone else gives you.
The foolproof plan for entering a foreign market
Furthermore, you have to set up tax and finances infrastructure set a final budget and build positive relationships with local businesses so that you receive a warm welcome when establishing there. You cannot attempt to penetrate a foreign market without following some fundamental steps. These refer toof that specific market, inform yourself about the currency value fluctuations, test the waters to establish your approach and ultimately, evaluating the competition.
If other businesses in the same field tried to do the exact same thing as you, which is to enter a foreign market, you can learn from their mistakes and not repeat them.
Most importantly, becoming familiar with their previous attempts allows you to foresee the potential obstacles, but also bring something different to the table that will surprise the target audience. Shortly, become a connoisseur of both spoken and unspoken rules.