How to Decide Which Global Markets Fit Your Business Model
If your business is taking its next big step and expanding globally, you need to consider several different factors to ensure the move is a successful and profitable one. Many small and medium-sized businesses are looking to reap the benefits that new markets offer.
When considering where to take your company to, try to think differently to all of the other companies out there. Don’t jump for the easy route of heading straight to the US or an easy nearby market, for example from the UK to Ireland.
Home in on your options
Before you make a move, decide on your options. Does it make financial and logical sense to expand by city, country or by language? If you’re looking to expand straight into another country over a city first, then take a private jet charter and talk to the locals. It’s imperative when expanding your business globally, to spend some time on the ground where you are wanting to set up base and speak to people who live and work there. You could look at all the data trends for your business sector in that country and analyse whether or not the market will suit your model, but nothing beats the invaluable insight of the people who reside there full time.
Prioritise the markets
There isn’t much point trying to jump into every single market that’s detailed in your statistics document. Think about what really matters to your business and what direction you’re heading in.
Is this new market as big as your home market or bigger? If the answer is no, then it’s meaningless expanding your business into this country, unless you have a strong reason. Are there similarities across markets? If you are a logistics or eCommerce business, the likelihood is that you’ll need established distribution hubs that cover most of Europe and beyond – make sure you check out factors like this before you make the move.
Can you get ahead of the local competition? When you head to your desired location and speak to the locals, get an idea of how established your competitors are. Are they start ups who you will have certain advantages over, or are they big conglomerates who may be hard to beat?
Leverage Partner and Channel Relationships
Working with your partners is a solid strategy when looking to expand globally. Maybe the distribution company you work with has its headquarters in your desired country or has a strong presence there. Keep your partners in the loop with your growth plans, you never know when you’ll need to lean on them for a greater insight and potential assistance as you drive your expansion forwards.