6 Tips for Expanding Your Business Globally
Did you know the World Trade Organization assigned a tremendous value of $12.1 trillion in 2020 to internationally exported goods and services? This vast market is waiting for businesses like yours to seize opportunities for growth, increased revenue, and a diversified customer base. Yet, barely 1% of 30 million U.S. businesses successfully enter the international arena.
Many companies hesitate to leap into global markets despite the immense opportunities and growth potential. The reason is the complexity and challenges of international expansion. A business may only know how to operate within its local markets, with established networks and customer relationships. Adapting to different cultures, languages, legal systems, and business practices can be overwhelming and often deter companies from leaping into broader international markets.
While only a fraction of companies expand into global markets, those who overcome the challenges of international expansion often experience higher revenue growth and improved overall performance. To successfully expand your business internationally, and position your business for long-term success, explore the following tips and strategies.
Expand your skillset through MBA programs
The need to navigate the global business landscape has never been more critical, making advanced education an attractive proposition for many aspiring business leaders. Interestingly, Washington State, which ranks as one of the fastest-growing economies in the U.S., is home to universities offering robust MBA programs that can equip you with the necessary skills.
If you don’t have the time to commute to a university, institutions like Washington State University offer online programs. Enrolling in WSU’s accredited online MBA program provides several benefits to enhance your career and personal growth, including comprehensive career support services, networking opportunities, specialization options, and electives to align with your interests. By joining these Washington MBA programs, you become part of a global alum network that eventually supports your entry into foreign markets.
Build international connections
Networking opens doors to potential partnerships and collaborations. It is easier to expand into a foreign country by establishing relationships with its businesses. Through these partnerships, you create opportunities for joint ventures, distribution agreements, and shared resources.
A foreign business partner can help you navigate cultural nuances, local market preferences, and regulatory requirements in international markets. One notable example is the partnership between Starbucks and Alibaba in China, which leveraged Alibaba’s digital ecosystem and local expertise to drive rapid expansion and success.
To establish international connections, identify relevant events or online communities, and engage in meaningful conversations. Share your insights and expertise to build credibility and rapport, and join professional associations to expand your network. It is crucial to be proactive and strategic to leverage your network.
Use digital/technological solutions for global operations
Using digital tools and platforms overcomes geographical barriers, allows you access to international markets, and makes data-driven decisions. Technology enables real-time collaboration, global reach through e-commerce and digital marketing strategy, and data analysis for tailored strategies.
One popular platform that can transform your global operations is Salesforce. It is a cloud-based CRM system that helps manage customer interactions, track sales leads, and streamline marketing strategies worldwide. Implementing Salesforce lets you personalize marketing campaigns, nurture customer relationships, and optimize your sales pipeline. Regularly evaluate the performance of your digital solutions and stay updated on emerging technologies to ensure they support your evolving business needs and global expansion goals.
Think globally, act locally
McDonald’s customer-centric approach is an excellent example of this particular strategy. Despite being a global brand, McDonald’s adapts its menus and marketing strategies to suit different countries’ local tastes and cultural preferences. They offer region-specific menu items, such as the McSpicy Paneer in India or the Teriyaki McBurger in Japan, to cater to local preferences while maintaining their global brand identity. The company operates globally but keeps the cultural differences of its outlet locations in mind.
This strategy lets you identify untapped markets and customize your offerings. Thorough market research, data analytics, and local partnerships are essential for effective implementation. You can also collaborate with local distributors, suppliers, or influencers to gain valuable market insights and establish strong customer relationships. These partnerships will enable you to navigate cultural and logistical challenges more effectively and build trust with local customers.
Conduct extensive Market research
A U.S. Small Business Administration study found that businesses that engage in market research are more likely to identify new market opportunities and expand internationally by efficiently finding customers. When you analyze market trends, consumer behavior, and competitor landscapes, you can uncover emerging markets with high growth potential and develop strategies to enter those markets successfully. The market research also identifies your target market’s cultural nuances and unique customer preferences. To get customers, you need to research customers.
To effectively use this strategy, list your research objectives and acquire knowledge according to your target market. Consider using primary research methods like surveys or interviews to gather direct insights from potential customers in your market segment. Then use secondary research sources, such as industry reports and government data, after basic research to comprehensively understand the market dynamics.
Learn from industry experts
The quickest way to master the business game is to learn from the masters themselves. By tapping into the expertise of industry experts, you can gain insights, guidance, and practical knowledge that will give you a competitive edge. These experts possess specialized expertise in specific fields or markets that can help you understand global business practices, industry trends, and emerging markets more effectively.
You can learn from industry experts by attending industry events and webinars and joining professional associations. This method can also improve your network and collaboration by connecting you with experts, industry leaders, and potential partners. These connections can lead to joint ventures and access to new markets, facilitating global expansion.
Draw inspiration from successful personalities like Richard Branson, the founder of the Virgin Group, who wrote the book “Screw It, Let’s Do It” containing his insights into business strategies, leadership, and essential life lessons. Branson’s experiences and achievements make him an inspirational figure to learn from in the global business realm.
Conclusion
A strong business plan makes a stronger business. Assess, evaluate, and predict your business threats and opportunities to develop a comprehensive global expansion strategy. While you may face risks, embracing them as stepping stones to growth is essential.
Every successful global expansion requires careful consideration, adaptability, and continuous learning. You should embrace challenges as opportunities and maintain the right mindset and strategic approach to overcome them using the strategies listed in this article. Take risks, believe in yourself, and go for globalizing your company.
