Do These 5 Things Before Launching An International Business
Imagine starting a business that has international ties, either in sales or supply. If your business in the UK is not as successful as you would like it to be, it could be due to several factors outside your control. Perhaps a few large competitors have gobbled up most of the market share or your products or services are not in high demand anymore because of market saturation. Still, in another country, all this could change. You could be a big fish in a small pond. Better still, your products or services may become the bee’s knees.
While the idea of expanding your business into another country might be tempting, one thing that might stop you from taking any action is working out how you’ll get paid from another country or pay for things from that country. Without a clear answer, it will be difficult to research the market and set up the business.
One solution for handling financial transactions could be as simple as using money transfers. Finding a reliable money transfer company will allow you to quickly send and receive money across the world. It will also give you excellent foreign exchange rates and let you enjoy low fees. One possibility could be to use Ria Money Transfer UK, which has over 340,000 locations around the globe.
You’re Not Alone
Although the idea of starting a campaign to grow your business internationally may appear radical, it’s not actually a novel concept. Each year, countless small British businesses contemplate that same question.
Like all treks into an unknown land, there are some basic steps that you can take to determine if this is a viable option for your business.
Should You Launch an International Business?
Here are five ideas to consider when researching the feasibility of starting a global business:
Step 1: Prepare an International Business Plan
You must get clear on a few things to evaluate your needs, establish your priorities, and set up your business objectives.
Where is your business now and where do you hope to be in the next ten years? Are you in a position to explore new marketplaces? How ready are you to commit to growing internationally?
Step 2: Do foreign market research.
Identify the best international markets for your products or services. To do this, you can make use of Conjointly’s Conjoint Analysis Tool. Alternatively, you can review the UK Trade website and the Office of National Statistics (ONS) to find the statistical data you need to make some evidence-based decisions. Keep in mind that these are crucial to increase the sales.
Step 3: Get financing.
Financing is always difficult, but the good news is that the government is always interested in boosting exports while private sources are constantly looking for promising new ventures to back up. So, if you persist and go about things the right way, you should be able to get the funding your business needs to launch this bold, new venture.
Something else you could try is crowdfunding. This alternative way of sourcing funds has helped many small companies change the direction of their business, giving them the means to move away from what’s not working to trying out new ideas that just might turn the tide in their favor.
Step 4: Select your distribution channels.
Some ways of distributing your products abroad include creating joint ventures or working with agents and distributors. Another option is to open a company-owned overseas subsidiary. Decide on the best distribution method for your company. Who do you want to work with? What type of transportation systems should you use?
Step 5: Work out the fine details
There will be many details that you will have to work out. Here are a few sample questions to ask:
- What prices should we set?
- What deals do we need to negotiate?
- What cultural and social landmines do we need to avoid stepping on?
- What legal and economic differences between the two countries do we have to consider?
- How should we package and label our products to comply with the foreign government’s regulations?
Some Things Will Change
These five steps will help you gather the information you’ll need to put together a realistic business plan. These steps will help you think through key issues and review possible obstacles. But, of course, there are no guarantees. So, be open to changing your plans as you learn more about your proposed new markets. You must be flexible and adaptable because not everything will go as planned.