Almost all entrepreneurs start their journey in a home office and dream of making it an international one. Thanks to the advent of technology, globalization has become more straightforward than it used to be. But it’s not that easy yet.
Over 15% of the US population is involved in startups. If you, too, are a recently emerged company, globalization might be a part of your vision. It is an exciting journey, but an equally challenging one. Without a roadmap and plan, you may end up drowning in your success. Hence you need to build a strategy considering the following tips to scale your business globally.
Thorough Research Is the Key
A foundational plan is always built upon thorough research, as failure is inevitable without it. Almost 90% of startups fail within the first 10 years, and one of the primary reasons is the lack of research and planning.
To establish your business in a new location, you need to understand the target market. Create a market segmentation report to gain insights into:
- Who would you target?
- Will the local audience adopt your product?
- Can you tweak your product to localize it?
- Who are your competitors?
- Is there great demand for your product? Etc.
Answering all these questions will help you create a strategy with time-based goals. Try to make your strategy as local as possible because what works for you currently might not work in the new market you are approaching.
Establish a Distribution Network
Whether you want to scale nationally or internationally, having a distribution network is critical. The number of digital buyers has grown from 1.32 billion in 2014 to 2.14 billion in 2021 and will continue to rise. Hence, having an online store is mandatory. But that alone will not help.
Besides having a website and eCommerce store, you need a distribution network to deliver online orders. Without such an infrastructure, the delivery will get delayed, leading to a poor customer experience.
If you don’t have the budget to create your network, you can outsource the job to local warehouse services. They can handle end-to-end logistics, from fulfillment, storage to distribution.
Monitor Your Finances
Financial management is vital when it comes to scaling your business quickly. Around 82% of small businesses fail due to cash flow problems. Monitoring your finances and deciding accordingly will save you from such issues.
Even before you start implanting your branch in the new market, you need to answer the following questions:
- How much will it cost to establish the brand and operate in the new location?
- What will be the cost to shut down if it is to fail?
- Are there any government schemes available to help startups?
- Can you establish a local manufacturing unit? If not, what will be the cost of exporting goods to the new market, and how will it affect the pricing?
Besides answering these questions, you also need to consider local tax rules as they can impact your accounting, payroll, and tax decisions.
Build a Ground Team
No matter how deeply you study the local market, you cannot understand and operate all of it from a remote location. Hence, hiring a local team that works on the ground is crucial. You may, of course, send some existing staff to the new market and hire as necessary.
The benefit of hiring local talents is that they understand the market well and connect with potential customers. For instance, they will know the local language, essential for customer support. Additionally, they have a profound knowledge of what the consumers are looking for and can help tweak your marketing strategies accordingly.
Moreover, hiring local talent will also help establish your brand overseas. People will look up to your brand as a company investing in the local community and providing employment opportunities. All in all, building a ground team will help you lay a foundation and scale quickly in the new market.
You can send your HR manager to the new location for research and hiring. However, you can also seek help from a third-party resource aggregator who can hire on your behalf. But before handing over the task, ensure to have a meeting to explain your requirements and assess if they can help you.
Final Thoughts
Scaling your business overseas requires a lot of research and patience. You cannot go global overnight. Follow the tips in this article and answer all the questions appropriately to create a foundational strategy. However, there is no one-size-fits-all solution here. Hence, even after having a plan under your hood, you might have to change it according to the local market you are targeting.
