7 Rules For Small Business Who Want To Find A Foothold In The Global Arena
By Ankit Patel
After a successful start at your home turf, it is now time to proliferate your business overseas. But before you venture into the global arena, there are quite a lot of challenges that you have to be prepared to overcome. Going global is, of course, what every business would like to achieve. But the question to be asked is how are you going to implement your course of action conducting your business overseas? Are you cut out for the challenge?
Here, we have listed some basic issues that crop up for any business intending to go global.
1. Market Research
A product that is a hit in your country may not find takers in another country. That is the truth and you should always see if your product has a market anywhere else. The rule is simple to make sure that the your customers exist internationally. Also, know how inclined they would be to see value in your product and purchase it. You may have to tweak the services to suit the local preferences. Never take for granted that you can seamlessly integrate your products and services into another market without making any changes.
2. Cultural Differences
The difference in culture and language is another barrier when you think of expanding your business internationally. Take a simple example. Fast-food giants like MacDonald's, Pizza Hut or Domino's Pizza specifically alters its menu to suit the local taste buds. Also, language is another obstacle. And merely using a translator app will not suffice. The ways in which people communicate differ from country to country. In some countries, communication may be friendly rather than business-type. You have to take care to see that your business standards meet up to their ways of conducting business.
3. Compliance Issues
The tax laws, customs regulations, liability laws, import/export restrictions- there are a lot of compliance issues that have to also be tackled with. The state laws vary with every state. How receptive is the country to international trade? Even the overseas banks have different procedures for making transactions. International trade involves more than the shipping process, with such a lot of compliance issues, what is the solution? The solution lies in aligning with a local partner. Research the trade groups and other chambers of commerce association in that country and partner with a local distributor. Also, international business consultants will make your job easy by finding a strategic partner abroad. Keep in mind that your overseas business partners should be well-versed with the tricks of the local trade. Also, their business interests should be the same as yours. If they are trustworthy, then half of your work is already accomplished. Remember, you have a competitive edge when you align with an efficient overseas business partner.
4. Local Competition
Once you decide to penetrate the global market, there is a lot of stiff local competition you have to face. Also, you have a disadvantage of being a foreigner there. So, how would you convince the customers that you have better products than local businessmen? Here, price consideration, trust, and quality are the prime factors that will set you apart from the local competition. You have to work your way all the while to see that the venture remains profitable under these circumstances.
5. Local Procurement
When you have decided to pitch your tent in another country, how will you go about resourcing the raw materials and manpower from the local markets? Here, there are new challenges to be tackled. Just take for example. If you are thinking of providing software services, will you be able to find skilled software professionals there? Some places may not have the adequate human resources that will provide you with the desired skill sets.
6. Dispute Resolution
When you think of going global, there will be umpteen compliance issues that you have to tackle. Sometimes, in spite of taking all the precautions, there might arise some litigation issues. The laws of each country vary. Hence, it is advisable that you hire consultants beforehand to keep you in the loop about the various legal norms of that country.
7. Local Markets and the Government
When you set up trade overseas, you have to be cautious with every step you take. You cannot afford to hurt the sentiments of the local people or the government there. Partnering with a local business group is the best solution. But still, instead of being fully dependent on the local partner, it is better than you do your research about the ways of conducting business there. Being fully dependent on the local partner will put them in the driver's seat. They may start dictating terms to you. For sure, this will hurt your business. So, take efforts to win the confidence of your customers and the government bodies there. Also, understand how your local partner conducts business there. Aligning with the local team will help you to have a deep understanding of the local markets and their needs. This will help you in the long run.
Wrap Up
Entering into the global arena is a risk worth taking. Of course, you may stumble at various points. But you have to learn from the mistakes. Being persistent in your efforts is the only way that you will be able to set up a flourishing business internationally.
About the Author
Ankit Patel is a Project/Marketing Manager as well Tech Writer. He is emphasizing on generating user-friendly yet creative content, he writes about new & upcoming technology, mobile app, web development, programming tools, business & marketing, and web design. At present, he is associated with XongoLab Technologies, which offers web and mobile app development services globally. Having a passion to know more about how technology is changing around the world, he regularly keeps himself updated about anything latest in the market
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