How to Succeed if Your Business is Going Global – Infographic
Every business should strive to be the best it can be and make constant progression. Once a target has been reached, the time is right to set new targets so that the business doesn’t stand still; otherwise, hungrier competitors will come along and blow it out of the water. When a business has forged a clear position as the main player in its own country, it should then seek to expand into international markets.
Or should it? The list of businesses which were outstanding successes domestically before flopping internationally is a very long one. Most of them failed to realize that what works in the domestic market is not guaranteed to be as effective elsewhere. Each market has its own economic and cultural characteristics which set it apart from others.
Let’s look at the market of China for example:
They have many cultural, lingual and legislative barriers. Plus their consumer tastes are completely different from anywhere else in the world. When it comes to marketing in China, you really have to understand their demographics if you want to succeed. Otherwise, it’ll be almost impossible to penetrate this market.
Plus there are many barriers to recruiting in China if you’re an international business. So if you don’t have the knowledge, network or understanding of Chinese culture, then you’re seriously going to struggle making your international expansion successful.
From working with multinational businesses such as Apple and Microsoft before starting my own business, All Finance Tax, I have seen firsthand how operating a global company is vastly different to running a business domestically. For any business considering international expansion, the first thing to ask is how well have you researched the markets into which you plan on expanding. Do you know what their buyer culture is like? Have you analyzed the likelihood of your product or service selling well in that market? Could you, personally, adapt to the cultures and languages of other countries? If you’re doubtful about any of these, you’re not quite ready to go global just yet.
Before you take the leap of faith into international markets, look at other companies who made the same move and analyze the nature of their success or failure. An inability to adapt the product or service to foreign markets is a common downfall, as is a lack of sufficient budgeting. Some companies also set the bar too high when going global; instead of trying to break 20 markets at once, focus on one or two first. It will be far easier to manage and if the move doesn’t work out, you stand to lose a lot less than if you cast a wide net.
Here is an infographic we produced which contains some essential tips for companies who are thinking of going global. It’s far too big a decision to make without knowing all the potential consequences, both good and bad. If you go in unarmed, prepare to be harmed.
Infographic on how to succeed if your business is going global