Weigh Your Readiness To Step Into the Global Market
Now, you may have realized how much money you are living on the table by failing to export your goods and services internationally. Many businesses like yours turn to reject international business opportunities by letting them slip away or fail to act on them. But is it sad to say, you have been giving up a huge share of potentials for your business. Exporting your products to the global market is a great opportunity to open up new doors and source of income for your company and eventually a remarkable growth in your business.
Better still, you may be interested to take the next step by going global and still wondering what it may take. But taking a step back to determine if your business is ready for an international presence is very important.
Going global is one the best decision you have made for your company this year but you should understand it is not just bread and butter. You will need to be committed and ready to put in the work, design a robust and strategic export plan, be prepared to align the international business fundamentals and your current business fundamentals, You need to understand what value you see in the international market and some other factors which you will have to consider in other to further determine if you are ready for the global scene or not. Going international is fancy to say but enough needs to be considered.
Some factors to consider or questions to ask if you are ready to venture your business internationally.
First of all do you have a website?
If you already have a website then you have just passed “international business 101.” If you do not have a website, and you are thinking of going international, I can conveniently say you are trying to go fishing without hooks and worms or better still a soldier going to battle without a gun. If you still don’t have a website, please, do yourself a favor by stop reading this post and come back when you have one. You will need a simple designed website that can be easily navigated and provides valuable information about your business.
Are you already profitable locally?
A successful local business is a signaling plus indicator if you are scoping the international markets. Doing well locally already shows your business is likely to succeed in the international market. Your local success already indicates there is an existence of a huge untapped market for your business internationally. This might not always be the case for some businesses as we know some times a hero is not always regarded in his home town. You may not be experiencing much success locally but in other markets your products can be making a killing. This is common practice with businesses targeting the wrong market. If you are not already succeeding locally, it is important to venture in the global market strategically.
Are you patient enough?
You should bear in mind going international won’t harsh your eggs the next day. You should be prepared and ready when going global for it will take some time to be acquainted. It should be worth noting that in the global scene, you won’t be selling just a few units like in the local market, but in tons. It takes some time to build a market internationally. It will necessarily take time to build a customer fan base, for them to trust your product and start referring the goodness of your products and for international distributors to start carrying your products. But at the end of the day, it will worth the wait because when you will hit the nail on the head, the sky will be your limit.
What is your production Capacity?
Do you think your production capacity can handle the international demand? As mentioned earlier, demands in the international market are ordered in tons and not just few units. Do you have the ready resources to entertain huge demands which will start pouring in as you go international? It is important to note that your competitors will easily take over the market if you are failing to meet up with the market demand which can lead to a lost in market share and a disgruntle customer base. It is very important to make sure your production engagement can respond to demand especially when you are brand new in a market.
Do you have the required human capital for the “avalanche”?
Going international means your business can be exposed to over 95% of the world’s market. This implies orders will come in from left, right, and center and the question is, do you have enough human resources to respond, provide every information necessary, and react to the orders that your business will be experiencing? Can your team be quick enough to respond to international leads? Is your team committed and dedicated to face the challenges in the international environment? Do you have employees with multi-lingual abilities? What about culturally-oriented marketing skills?
Do you have a unique selling proposition for your global market?
In other to sell more and smarter, you will need a unique selling proposition for your target market. With a unique selling proposition or a compelling tag line, you will be able to stand out from the competition. A good number of businesses will claim they are the best, they offer the best customer service but fail to indicate how different you stand in the market place. Due to the competition in the international market, you need to differentiate why a customer should buy from you according to the customer’s viewpoint and not just because you are the best. Think about what value you bring to the market place which makes you stand out from the competition.
It is important to have your unique selling proposition communicated in all your platforms. It needs to be repetitive and well developed.
Have you educated yourself about the international trading environment?
It is very important to familiarize yourself with the basics of the international trade environment. You should be able to understand the ever-changing nature of the international market due to globalization, the existing trade agreements in the markets you are looking at. Have you a clear understanding of the risks, benefits, and challenges that awaits you in the international scene? Above all are your sources of information reliable and ready to act upon? All these are very vital to secure a successful global venture.
Have you contacted an export assistant or consult an export management service?
It is very important to get in touch with experts in the fields of imports and exports to get valuable information about the markets you are considering exporting to. Business associates are in a better place to providing beneficial information about the industry which can guide you better and to avoid the hurdles of going into a market blindly.
Have you thought of how your products will get to the market you are looking at?
Going global can be a very good idea but have you had thoughts on how you intend to deliver your goods to this market. There is so much concern about shipping which you must consider before you start shipping your products out there. Some product categories make it difficult to ship at certain points and maybe very delicate. An example is if your products are supposed to appear in the market as fresh. In this case, shipping from the US to Asia might need a lot of considerations, and a second thought. Also, what’s the shelve life of your product? Will your products arrive expired at the market? Is the shipping method you are considering safe to avoid your products arriving at the market already damaged? Above all, will the cost of transportation keep you hand and glove with the competition?
Have you done an in-depth market research?
Jumping into a new market blindly is the worst mistake you can ever make for your business. Do you have a clear picture of the customer profile? Do you know who your competitors are in this market? Is the any potential for you in this market or not? Do you have any clue of the climatic, geographical and even political factors that can stand tall against your success in this market? Lack of an in-depth market research lives you with no clue of what you can be expecting in the market. But on the other hand, a good market research will give you all the information you need to sustain your business in the market. Gives you a clue beforehand of what your expectations can be and how you can use certain factors for your advantage.
What is your commitment level?
How committed are you and your employees to succeed in a foreign market? Are you ready to accommodate all the challenges that come with selling internationally? Are you ready to treat every lead or request you receive for your business with respect? Are you ready to give out your best to your global customers? Your level of commitment will give you an added advantage in the international market. Your commitment to succeed will make you give out your best and you will be able to pay attention to the market and provide all what is needed.
Have you a well-organized export plan?
Having a well-developed and strategic export plan that details your export strategy will be highly needed before you venture internationally. It is also very important to test if your export plan aligns with your business goals and objectives. More importantly, are your export objectives well focused and achievable? Does your plan reflect your mission statement or your unique selling proposition? You must be able to put everything in place and connect the dots before you even begin exporting your goods abroad.
Do you see value in your international venture?
It is very important to have a realistic expectation, goals and objectives. Most importantly, do you have a realistic expectation on return on investment? In other to set up your expectations, you will need an in-depth market research and a focus driven export plan. Because going into a new market without spotting any value and market potential is dangerous and unsustainable.
Are you ready to modify your products and services?
Certain markets will demand a whole different approach to market due to regulatory obligations or due to customer preferences. You will need to understand your local customers may never be the same as the customers in the global or foreign market. In the international market space, your products are bound to adhere to the local laws or cultural values of that market which may lead to a different go to market approach. Customers in the foreign market may have a different set of preferences that best suit their needs. This implies you must be able to modify your products to meet your customers’ preferences abroad. This can be through packaging and quality specifications.
How flexible is your export strategy?
How well can you adapt to change as your business gets exposed to the unpredictable nature of our world today? How flexible is your business when faced with the risks and challenges in the international business atmosphere? Have you prepared your business foundation internationally for changes that are beyond your business control like an unforeseen circumstance that might come due to geographical or climatic changes, civil unrest, and change in regulations in the new market? It is very important to brace yourself and be able to have a very flexible strategy in place.
Have you updated your IP rights?
Going global means global exposure which is crucial as you don’t only expose your products to broad prospective customers but also to competition and to worldwide of criminal minds with hidden intentions. Updating your intellectual property (IP) rights of your products can protect your products from pirates and can further open a monopolistic opportunity in the market. Without IP rights protection, a cheap competition can easily clone your formula or specs and kick you out before you even gain ground in the market with lower prices. But with your IP rights protected, you can own the market for your products and enjoy monopoly power as long as you want.
