5 Things to consider before entering a global market
Are you planning to take your business to a global market? Here are 5 things you need to know!
Businesses of varying sizes have been able to conduct international trades thanks to technology. However, just because you can conduct business on a global scale does not mean it is going to be easy. International business transactions present a number of challenges, ranging from cultural and language barriers to shipping costs.
Therefore, you need to consider a variety of factors, gather the right resources and have an actionable plan to successfully run a business in the global market. To help you make an informed and confident decision, let us walk through the key factors in setting up global businesses.
5 Things to consider before entering a global market
1. Determine the direction of your funds
While companies fail for a number of different reasons, one of the more common reasons is a lack of seed money, which is often the result of the business owners' overly optimistic revenue and profit projections. Starting a new business is difficult under any circumstances, but it is especially difficult when operations are remote and the economic climate is uncertain.
International business incurs additional expenses such as travel, customs, phone calls, and office space if you plan to provide an overseas office. For most businesses, the most significant cost difference between doing business internationally and domestically is shipping. Do not forget to factor in the hidden costs of shipping overseas, such as hiring a travel agent and purchasing overseas shipping in advance.
2. Outsource third party assistance for payments
In terms of payment and delivery of goods, expanding your business internationally can be frightening for both you and the person with whom you are doing business. The foreign exchange market can be incredibly unpredictable, and if you do not keep track of it, your profits can quickly disintegrate as money is converted between currencies.
Explore your options for international money transfers; you should see if traditional remittance methods are working well for you. Many times, you will be charged hefty prices and will have to wait several days for the money to clear and be credited to your account. As such, you can employ alternatives such as TranSwap for transparent and efficient transactions.
3. Language and culture barriers
If language and cultural barriers are not addressed, they can be detrimental to your relationship with overseas suppliers, partners and consumers. Determine whether you will need to hire translators or redesign your website. To effectively learn about the use of international business etiquette, it is best to hire a local agent for assistance.
When establishing a physical presence in a new country, a local agent, or sometimes a lawyer or investment advisor with experience in international law, can serve as an invaluable tool to your business. You do not want your products to struggle in sales or your business shut down as a result of poor communication or misunderstanding with local government officials.
4. Choose a specific market to penetrate
You may bite off more than you can chew in your haste to show the world what you have to offer. Even though you are entering a global market, you must still narrow the markets for the first stage of global growth by assessing which markets are most feasible for what you sell. Market entry and size, cost efficiency, labour and resource production capacity, geographical constraints, and legal regulation must be considered.
When you place extra attention and care on a certain market, it will be easier to attract your desired audience. This will help you gather like-minded people that will appreciate your business’s offerings and values and they will become natural advocates of what your business provides.
5. Learn which marketing channels work best for your business
During your research, you most likely will come across the most popular marketing methods and platforms such as social media, search marketing, and online advertising for your targeted market. Take this time to learn which channels of communication you should be utilising to reach your intended audience. Consider their age, interests and cultural background when you do your research.
With the information you have gathered, continue to collect additional data on blogs, forums, email marketing, and other channels where you can get your marketing messages out to the greatest number of people.
As a final piece of advice, remember to utilise all the available resources that could help ease your business operations. Running a business from another country requires a considerable amount of effort and planning, but once you have successfully grown your business, you get to create new revenue streams and enjoy the benefits of new business opportunities.
Talking about tools to ease your business operations, TranSwap is very passionate about assisting small and medium-sized businesses to globalise. If you need to move money between different countries, our multi-currency Global Account allows you to perform global transactions easily and at the lowest cost possible. For further enquiries, send your questions here or visit our website at transwap.com.
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