1. Get Your House in Order:
2. Know Your Market:
3. Plan Your Finances:
4. Consider Your Operating Model, Infrastructure and Technology:
There are different strategies for expanding globally and having a firm understanding of your operating model is key to success. Some organizations chose to maintain decision-making control at headquarters where they focus on efficiencies and economies of scale, while others may prefer to empower leaders on-the-ground to make decisions and build sustainable operations based on localization and responsiveness to local market needs. Expanding globally will likely require you to invest in new infrastructure and technology. This may include setting up local offices, hiring local staff, developing new supply chain networks, and implementing new software or systems to support your operations.
It’s important to carefully consider the infrastructure requirements of each of your target markets, as these may differ significantly from those in your home country and from one another, depending on your operating model. For example, if you decide to empower local leaders to make decisions and focus on market responsiveness, you may need to invest in new technology to comply with local regulatory requirements or to meet the preferences of local consumers. On the other hand, if you decide to maintain control of decision-making at headquarters, you will require systems that enable effective and timely communication and are designed with global audiences in mind.
5. Build a Local Network:
One of the most important considerations when expanding globally is building a local network of partners, suppliers, and customers. This means establishing relationships with local vendors, distributors, and service providers, as well as building a strong customer base in your target market.
Building a local network can take time, so it’s important to start laying the groundwork as early as possible with a solid marketing strategy. This may involve attending trade shows, networking events, or industry conferences in your target countries, as well as building relationships with local industry associations or chambers of commerce.
6. Stay Up-to-Date on Regulations:
Expanding globally means navigating a complex web of regulatory requirements, including tax laws, trade regulations, and employment laws. It’s essential to stay up-to-date on these regulations and to work closely with local experts to ensure compliance.
This may involve hiring local legal counsel, partnering with a local business consultant who can provide guidance on regulatory compliance in your target countries, or retaining the services of a global consulting firm such as Factum Global to do this work for you. It’s also important to stay informed about any changes to regulations or laws that may affect your business operations.
- Make sure that international business is right for your organization. While global business is a source of limitless opportunities, it is not for everyone.
- Review your own business at home and determine whether you’re ready for expansion or if you need to continue focusing on building your domestic market.
- Conduct thorough market research to understand the opportunities, addressable market, and the cultural, economic, and legal landscape of your target markets.
- Develop a clear financial plan that takes into account the costs of going global and your anticipated revenues and cash flow projections.
- Invest in new infrastructure and technology as needed to support your global operations.
- Build a local network of partners, suppliers, and customers in your target markets.
- Stay up-to-date on regulatory requirements and work with local experts to ensure compliance.