Brexit is full of surprises. While you’d expect that the toll of Brexit uncertainty on SMEs would mean small businesses were hunkering down in the UK, global expansion is on the cards for many. Despite the economic uncertainty of the last few years, many SMEs are expanding internationally. Have you considered the possibilities for international expansion for your small business? Going beyond national borders is a great way to access diverse markets and widen your reach.
That said, going global is hardly a walk in the park. Before you start putting firm plans in place, here are some key things to consider.
Get Legal Advice
One way to expand your business internationally is to consider the possibility of franchising. By replicating a proven profitable model, you get to tap new markets and broaden your horizons without having to start from scratch. Commercial legal advice is essential before you set up a franchise, especially if you’re launching in another country. Bear in mind that franchising is not foolproof. The success of a product in one location does not guarantee the success of that same product in another location. Before you take the plunge, it’s a good idea to look at your competitors who may have done the same, and learn from their successes and mistakes.
Product Development
As outlined above, your product or service might not immediately take off in another country, even if you’ve been doing well at home. Cultural norms are a major factor in how a product is received by any given market, so it’s crucial to do your homework ahead of your launch, avoiding being taken by surprise when your product or service under-performs. And if it looks like your product might not sell as well in another country, this is not necessarily a reason to give up on the idea. Just because your new consumer doesn’t immediately embrace your brand doesn’t mean that they won’t warm to it. Your product very well may have a future in the new environment after a bit of tweaking.
Your product development phase should start a long time before you make firm plans to launch in a new country. Obtain as much data on your new audience as you can to help you understand their needs and preferences. Use this for product development with the goal of tailoring your product to the unfamiliar market. If it can’t be done without fundamentally changing the product or eroding your brand values, then this probably isn’t the right market for you.
Rethink Your Marketing Strategy
If you’ve nailed your marketing strategy in your local market, the temptation to apply the same formula in a new market can be great. After all, if it’s not broke, don’t fix it, right? Unfortunately not.
If you want to achieve lift-off in another market, rolling out the same marketing strategy is not necessarily going to work. Just as you may need to invest in product development, any work you do towards honing your marketing strategy will pay off, too. Whether your approach demands a complete overhaul or just a couple of tweaks, it’s well worth putting in the work to do this before you launch. Try out your strategy on various platforms and adjust the tone of voice if necessary, gauging your results as you go. You never know: a couple of fine adjustments could be all that’s required. That said, a successful marketing strategy is all about learning from past iterations and building on new customer data, so while you can do everything in your power to hit the ground running, expect your marketing to be a work in progress, as it should be in any market.
Cross-Border Communication
As a business owner, you’ll know first hand that communication is key. Without effective, clear channels of communication between all parties, things can quickly crumble. So if you’re thinking of launching in another country, your communication strategy cannot be left to chance. Spreading your company across borders comes with a range of challenges when it comes to communication. Whether the potential disruption will be owed to differences in time-zone, language barriers, or geographic separation of key players within your company, it’s crucial that you put measures in place to bridge the gaps and minimise the ‘broken telephone’ effect that many newly-international companies suffer. This may require out-of-hours Skype meetings, regular conference calls, bringing translators on board, or splitting your team in creative ways. These new measures may be challenging to establish, but it’s crucial to do whatever it takes to keep the channels of communication flowing.
Whether you’re thinking of franchising or launching your e-commerce business in another country, going global can be thrilling. But it can also be tricky. These tips will help you prepare for new challenges.
