Mistakes to avoid in your internationalization process

Entering an international market is a great opportunity, but can be challenging and pose risks. It’s a delicate operation, but being aware of some of the most common mistakes can help you start on the right foot.

Let’s see a few mistakes to avoid. 

1. Not having a plan

Improvising is not an option. You need to create a solid basis and lay the foundations of the project. Entering the international market without having a strategy and an effective planning can lead to enormous problems.
It is essential to carry out an initial analysis of different factors: from which markets to target, to what goals to set, from the preparation of a detailed action plan to the expected costs and return on investment (ROI).

• Is the company strong enough for the project?

• Are there any weaknesses to work on?

• Is there a market demand for your product or service in your country of interest?

• How will you fund your growth operation?

• Do you have all the resources needed to manage both the national and international activities and tasks?

• What kind of economic return do you expect and what is the time frame?

• Are there any government programs to facilitate foreign direct investment (FDI)?

2. Underestimate the organizational process

• What operating and organizational processes should you implement?

• Do you have the human resources required at both operational and managerial levels? Do they have the right skills?

Having a team in place that coordinates the operations from the HQ is just as important as being able to count on a local team in the targeted country.
There is no need to save on the budget when it comes to finding the right people with the required skills, talent, and reliability. It takes time and energy to identify who can represent our company and our interests abroad.

3. Not investigating the local market

It is crucial to carry out some research to analyze what differentiates your product or service from your original market. It is an entirely new reality with different buyers and competitors.
Many companies just skip this step, and that is a major mistake. The same product will be offered in new foreign countries, to different types of customers, with different tastes, preferences, and habits.

Perhaps you will need to make some prior changes to the product or service you are planning to position and adapt it to the new market.

4. Addressing markets which are too broad

Specific nations should be considered. Deciding to expand into Asia or North America is just too generic. Each nation has its local legislation, cultural norms, currency, payment methods, and practices.
Being very specific will make it all much easier. It is vital to take account of trends and industry forecasts, competition, distribution channels, marketing, fiscal, legal, customs and- last but not least- cultural aspects.

5. Categorically decide to do everything by yourself

Who said that you need to prepare for a new market all by yourself? Working with a reliable local partner whose market awareness is proven, can save you a lot of time and money.
Sometimes, it may be helpful to acquire an established local business that will enable you to benefit from its existing reputation and customer base.

In other cases, you may need to open an office in the new market with a local team that understands the business practices and behaviors of local consumers.
6. Have no patience

It is wrong to expect a fast return on the investment. Looking at international markets is a great growth opportunity, but it is a long-term strategy.
Internationalising a business involves an adjustment phase. It takes time to build new business relationships and create a good presence and reputation. It is quite unlikely for these projects to happen quickly. It may take several years. Patience is essential if you are planning to benefit from long-term results and it is vital to budget enough money to fund the entire operation, including the possibility of facing unexpected costs.

A business internationalization process is a very important growth strategy in the current economic and financial system. An accurate preparation, a solid strategy and the ability to quickly adapt to changes are key to success

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