Think of the global market as an opportunity. And not just any opportunity either. The global market holds tremendous opportunities for businesses willing to take the necessary steps to expand their business overseas. There is no doubt that the worldwide market is growing exponentially. The world’s population has grown from 3.8 billion to 7.6 billion since 1990.
In the past two decades alone, the world’s Gross Domestic Product (GDP) has grown by 3.4. And it’s only going to get bigger from here on out.
If your business is ready to take advantage of the global market, follow these four steps to help you prepare for the next step.
Perform Due Diligence
- Perform due diligence on the country you want to enter
- Find out what regulations and certifications your business might need to comply with
- Conduct research on how much it will cost to get set up in that country
- Research what marketing channels are available in that country
- Determine whether or not the country has a thriving middle class
- Look at cultural differences between countries
Develop A Strategy
There are some key things that you need to think about before developing your strategy.
- What type of market do you want to enter?
- What is your product or service?
- Who is your target audience?
- What are their needs?
- How are they different from the U.S.?
- Who’s your competition in this market?
- How can you be competitive with them locally?
These are all things that you should consider before going into a new country. No two countries will be the same, so you must spend time learning about the particular country and who your competition is there. That way, you know what strategies to take for success when entering the global market.
Familiarize Yourself With Local Laws and Regulations
The first step to expanding your business abroad is familiarising yourself with the laws and regulations. Doing this will help you avoid costly mistakes.
For example, while it may be legal to purchase products in one country, importing them into another country could land you in hot water.
You’ll want to research the rules for importing goods from one country into another country. If you are unsure how local customs work, it would be wise to consult with a company specializing in foreign trade.
Be aware of policies regarding employees and employment benefits and requirements. For example, if you are taking advantage of the growing markets in Africa, you need to be aware that while there is no minimum wage to abide by, there are strict laws regarding hiring outside of the country for job roles. Local rules can also vary regarding trademarks, patents, and copyrights. Using an EOR service can assist you in complying with employment laws in the country.
Prepare A Budget Analysis
Before you take the plunge and make your first step in the global market, you must have a budget analysis. You need to carefully consider how much money you’ll be able to spend on your business during this process. Sit down with a pencil and paper and list all expenses you can predict for the following year. Consider things like travel, shipping, hosting, marketing, office space rental, etc. Once that number, divide it by 12 to get an average monthly cost per month.