How to internationalize your business
Internationalization can be a great opportunity for small businesses.
It is not just a way to tackle the economic crisis, but also a great growth opportunity that can be put in place in many different ways.
For example, hiring foreign suppliers can lead to cost reduction or accessing new markets can result in increased revenue.
There are so many ways to internationalize your business.
In addition to showing a greater interest in international events and the possibility to attend international fairs and conferences, the process may start with an increase in exports or imports from foreign suppliers.
Relations with international partners can be improved by signing new agreements, creating joint ventures, business branches and, eventually, manufacturing your products abroad.
Another important way to internationalize your company is to start a new one abroad.
Of course, any possible economic or fiscal benefits can differ from state to state. But, in general, we can say that starting up a company abroad can help attract foreign investors and start new collaborations as well as, of course, access the local market more easily.
Besides, an international company branch can help receiving funding from the local government. Indeed, at this historic moment, many states are offering economic benefits to foreign companies investing in their country, including tax reduction.
Whatever your business internationalization will be, however, it will require some prior, deep research and planning. The investment impact needs to be preceded by a thorough cost-benefit analysis.
One of the first steps to be taken should be contacting an industry consultancy firm who can provide accurate and detailed information about the local market, the costs involved and the administrative and fiscal obligations of the targeted country.
INITIAL ANALYSIS
It is essential to start by studying and evaluating the opportunities offered by the new market. And then continue by assessing the company’s organizational and financial resources.
It is necessary to understand if the company can really afford the investment. Do not forget about local government funding possibilities, though: they can literally provide a great boost to the project.
DEFINE A STRATEGY.
The second step would be to develop a strategic plan by contacting partners of the local market. This is the time to choose the products, set the prices, organizing product distribution and transport logistics. And include the possibility to, eventually, relocate the production.
FLEXIBILITY
Dealing with new economic realities and markets may require a strong ability to adjust the company’s offer and communication. You might need to adapt to new customers’ needs and think of new ways to market and sell our company’s products or services. New experience and knowledge can also be gained by following this path. And that can certainly help the overall company growth.
Internationalizing your business involves many aspects that vary according to the country you want to target. Legislation can be considerably different and sometimes very complex. In the United States, for example, it can deeply differ from a State to another.
Being able to count on a professional team who can handle all the necessary authorizations and the administrative aspects is of primary importance. You can read more on internationalization in our previous article: 6 Steps to be successful in international markets.
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