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8 Thumbrules For Successfully Conducting Business Overseas
In today's global era, it has become highly important to learn the art of building businesses overseas, as it's the only way one can achieve the big international business dream by mastering what it takes to build it & then be surprised of how much it can offer in return. The expansion process is a terrific journey of diligence, faith, meticulous planning & focused operations. Here's a piece of 8 powerful thumbrules for conducting successful business overseas. Read On!
Expanding your operations overseas is an exciting endeavour to embark on. With proper planning and execution, the potential rewards and opportunities are vast and enriching. When conducting business overseas, it is necessary to prepare your business and your teams for the challenges and cultural nuances ahead. Successful entrepreneurs know that adhering to the following tips is essential for international success.
#1 - Study the Market
While your product lines may be vast and diverse, that doesn't mean they will be a success in every market. Conducting market research prior to entry is essential. Whether selling food products or plumbing fixtures, it is critical to know which of your products will fill a new niche, and which products can compete with existing options available to consumers. In all instances, you will need to conduct thorough research into the national demographics, product preferences, etc.
#2 - Understand the Customs
Understanding the nuances of the business culture can save time and money. It is crucial to know how business is conducted within the region and what you can expect in regard to everything from scheduling appointments to contract negotiations. The higher your cultural IQ, the stronger the relationships you will form with everyone from your legal team to your distributors and sales reps. The stronger these relationships become, the greater the potential for your business venture.
#3 - Hire Local Experts
You will need a team of knowledgeable lawyers, accountants, and transportation professionals when you enter any foreign country. These experts can help you navigate the often complex legal and tax structures you will encounter. No business should enter a foreign marketplace without thoroughly understanding the legal and accounting requirements that underline any deal. Moreover, local professionals can help organise and manage the network of warehouses, transportation companies, distributors, etc. that are required to support your endeavours.
#4 - Employ a Translator
A solid and reliable translator is worth their weight in gold. Your translator can help with everything from organising meetings to negotiating contracts. While your partners and distributors may speak English fluently, there will most certainly be a need to have contract and marketing materials translated into the local language.
#5 - Brand Carefully
Your marketing slogans, symbols, and cultural references may not translate from the domestic market and into your international audience. Before entering a new market, it is imperative to determine which symbols, references, and slogans may be considered offensive within the new market. Acting on the information you gather beforehand can help you avoid significant embarrassments and headaches down the road.
#6 - Utilise a Payment System
SEPA, the Single Euro Payment Area has made it easier to conduct business throughout the European Union. Not only does it make processing international payments easier, it makes the process more secure and reliable. It brings a level of standardisation to business that reduces costs and makes it easier for businesses to maximise their capital allocation. When coupled with a SEPA automated payment system, the results are stability and strong growth potential.
#7 - Develop Contingency Plans
Very few companies enter new markets without hitting a few bumps in the road. For this reason, it is wise to ascertain and examine potential problems throughout the supply chain and develop contingency plans to counter them. Doing so will ensure that your products get to market even when things don't go according to plan.
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#8 - Set Targets & Stay Vigilant
Many companies fail when moving internationally because of three reasons. First, they set unrealistic targets. Second, they don't vigilantly monitor their distribution and sales networks. Finally, they aren't willing to adjust their strategy when it becomes clear that something isn't working. Before setting sail, make sure that your targets are realistic for the market and that you have systems in place to track everything from inventory distribution and sales. Most importantly, build flexibility into your plans so that you can make adjustments along the way.
Conducting business overseas is exciting and rewarding. When properly planned for and executed, it can create many new opportunities. As with any endeavour, success depends on doing thorough research, cultivating solid business relationships, creating a solid foundation for action, and becoming thoroughly engaged in the process.
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Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 13th January 2017.