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When a business is performing well in a given market, it’s not uncommon for entrepreneurs to consider scaling operations. With digitalization making it easier than ever to reach customers across borders and manage a dispersed team, expanding internationally has become a real possibility for many businesses today.
However, before setting up in an international market, it’s best to conduct thorough market research on your potential market to ensure you know exactly what you’re doing before it’s too late to turn back. As experts, the members of Forbes Business Council have experience operating in domestic and international spaces. Below, 20 of them offer essential steps for entrepreneurs interested in scaling in their business into international markets.
1. Appoint The Right Management Team
Entrepreneurs need to have a management team with the right skills and experience. That’s not to say this team would know everything about the target market, far from it. But the team can engage local partners or consultants to understand the market environment, customer behavior and the legal and regulatory environment. Combining local knowledge with global best practices can increase the likelihood of success. - Aseem Goyal, Factum Global Asia
2. Identify Your Expansion Goals
First, clearly define your expansion objectives. Understand and identify what it is you are looking to solve with the expansion—is it customer growth, enhanced support and cost optimization? Is it to create a follow-the-sun model? Once your goals are identified, come up with a shortlist of cities to visit. Being on the ground and meeting with local officials and candidates in person is key. - Andrew Boni, Iterable
3. Visit The Area
I've made this mistake myself several times, so learn from my example and never attempt to scale without visiting the area, talking to prospects and partners and learning the culture and language. Also, you have to recruit somebody you highly trust who lives in that country to help you get started. If you don't already have clients or partners there, you're not ready to scale internationally. - James Langabeer, Yellowstone Advisors
4. Engage With Key Local Professionals
In scaling internationally, my top advice, drawn from expanding over ten companies, is to directly engage with key local professionals. Online research can't match the insights from a conversation with someone on the ground. Freelance websites are invaluable for connecting with local experts who can offer firsthand perspectives. This step is crucial for tailored strategies that resonate with locals. - Ohad Ben Artzi, OBA PR
5. Examine The Business's Financial Standing
Ensure the business can afford international expansion. Work with someone who lives or has lived in the target market, specializes in your field and understands the local culture. There are also basic considerations regarding entity establishment, legal, trademark, regulatory or insurance requirements, warehousing/logistics, banking, employment legislation, contacts and plenty more. - Simon Chamberlain, Harrow and Green USA Inc.
6. Determine The Impact On Current Customers
Customers have been our priority when deciding whether to grow our global presence. Always start by asking what you are seeking to achieve with this footprint expansion. Will it help you deliver products faster or better? Reach new prospects? Reduce costs? All of the above? Regardless of the driver, understanding how customers are impacted by global expansion is what matters most. - Alex Mans, FLYR
7. Conduct Market Research
Conduct thorough market research to understand the new market's cultural, legal and economic landscape. This foundational step informs strategy, ensuring adaptations to local needs and compliance with regulations, which is crucial for successfully expanding internationally and minimizing risks. - Malcolm Allen, Graduate America
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8. Understand Client Needs
Understand client needs within those markets. We’ve found that the key to success is truly listening to clients’ needs and goals at the outset. This ensures we can provide a KPI-based approach to local challenges and organizational consistency. Differentiating in a new market starts with understanding global challenges in a local context in ways that local competitors may not be able to. - Bradford Dockser, Green Generation Solutions, LLC
9. Leverage Established Processes
Understanding the pain points their products effortlessly address provides business leaders with invaluable firepower and leverage, enabling them to introduce existing products to new markets. With well-established processes already in place, the tasks involved in expanding to international markets become streamlined and straightforward. - Sabeer Nelliparamban, Tyler Petroleum Inc / ZilBank
10. Conduct A Comparative Cultural Analysis
Scaling beyond exporting means assessing optimal entry strategies, including partnerships, local distributors, joint ventures, mergers and acquisitions, as well as setting up a local firm. From our experience, successful companies conduct an essential, comparative cultural analysis to assess the optimal fit for all internal and external stakeholders, from customers and employees to partners and administrative factors. - Sanjyot P. Dunung, Atma Global
11. Break The Decision Down Into Factors
I would advise anyone to classify the international market into internal and external business environment factors. Internal environments are factors that can be controlled by the organization while external factors are factors that are out of reach of the company’s control. The organization can assess the risk potential of international expansion based on these factors and then choose expansion strategies. - Vinay Chandrashekar, Long Boat Brewing Co.
12. Do Comprehensive Pricing Research
Companies need to do comprehensive pricing research to understand how an international market is always different. What works in sales, marketing and pricing in the home market will not work in an international market. Yet, I see so many companies believing they can do the same thing and be successful. They will not. - Per Sjofors, Sjofors & Partners Inc.
13. Outline A Market Launch Formula
Think big by creating a scalable market launch formula. The overall approach of analyzing, strategizing, planning and executing is the same for all. You should also test throughout the execution phase, as it's through this testing you find your own unique launch-specific formula for your brand or product. Be flexible but don't enter the market if your analysis for market fit shows too many yellow flags. - Jonathan Tjoa Algreen, 1 People
14. Engage An Expert
We often talk to international companies wanting to scale into the U.S. and many don't have an understanding of the nuances of either working with U.S. companies or the public sector. A true review of your market strategy by an expert is crucial to ensure success in approaching businesses, discussing contract structures and outlining realistic timelines. These expectations can be quite different in the U.S. - Jennifer Sanders, North Texas Innovation Alliance
15. Hire Local Consultants
Immersion in your target market is key. In my opinion, the hardest part of expanding internationally is understanding the market. This can be done relatively quickly through consultations. I suggest hiring three to five consultants or people who have achieved a certain degree of success in that market and absorbing as much intel as possible about that market. It’s even better if you can acquire a company in that market. - Mina Elias, Trivium Group
16. Consider Immigration Laws
When expanding your business into international markets, immigration issues should be one of the top items you consider. Every country will have its laws. We have many different visa categories in the United States, for example. The best option will depend on several factors, including who will come to the U.S. to help with the expansion—be it an owner, executive or employee. Be strategic with your plans. - Tahmina Watson, Watson Immigration Law
17. Compare Your Current Market With The New One
Based on my experience, I would suggest two things: First, understand the liability of foreignness or cultural distance between your home market and the new market. An easy way to do this is to start with the book The Culture Map by Erin Meyer. Second, make yourself and your leadership team answer the question "Why will we fail?" and develop ways to mitigate these risks. - Oleg Chanchikov, CapyGroup
18. Immerse Yourself In The Local Industry
Before scaling into international markets, you need to put your own feet on the ground there. Market research is no substitute for immersing yourself into the local culture and building relationships face-to-face. Leverage strategic introductions to local business leaders and centers of influence. Schedule your time in the country to coincide with top industry conferences and conventions. - Angelique Rewers, BoldHaus
19. Build Trust Within Your Intended Market
Trust and credibility are key considerations for potential international partners, investors and clients. In consideration of this, a business leader looking to scale internationally needs to build trust with the international community. They can do this through membership of a credible international network or association or by achieving certification by a credible international body. - Toyin Sanni, Emerging Africa Group
20. Ensure The Business Has Maximized Current Market Opportunities
Before a leader starts looking to scale into international markets, I would suggest they first make sure they are maximizing their business potential within the United States. I've seen business leaders enter other markets without maximizing their local markets first. This can leave your business spread too thin and unable to meet local and market demands. Own the local market first! - Chris Clear, Clear Storage Group, LLC
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As businesses seek to scale internationally, particularly in today's digitalized environment, careful planning is essential. Before entering a new market, entrepreneurs should conduct thorough market research to understand cultural, legal, and economic landscapes while determining their expansion goals. Building a strong management team skilled in engaging local professionals is crucial, as is assessing the business's financial standing, existing customer impacts, and conducting comparative analyses of potential markets. Gathering insights from local consultants and immersing oneself in the area are invaluable steps, alongside ensuring compliance with immigration laws and conducting comprehensive pricing research.
It's also vital to establish trust and credibility within the intended market by becoming part of credible networks or obtaining international certifications. Entrepreneurs should classify internal and external market factors to mitigate risk, ensure they have maximized opportunities in their current market before expanding, and create a scalable market launch formula. Building relationships with local stakeholders, continuous testing, and flexibility throughout the execution of market strategies are key to ensuring a successful international expansion.
now with the same paragraphs explain How will/can/does this article impact you or children your age? Explain in 1-2 complete paragraphs.
with the same paragraphs explain How will/can/does this article impact you or children your age? Explain in 1-2 complete paragraphs
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