Managing a business is no
easy feat nowadays—economic and technological changes take place at an
astonishing rate, meaning that the parameters for doing business also
constantly change, notes Neal Jenson, Managing Director of a Salt Lake
City-based consulting firm that has advised a range of businesses, from small
start-ups to Fortune 500 companies.
If you are a CEO or an
entrepreneur with your own business to look after, you are also in charge of
nurturing and growing the business.
The first step to grow
your business is to know how to make it thrive from its current state. One move
that business owners can make to expand their business is to take it to the
global level. However, before venturing out onto the global stage, it is
critical to know if it is wise to take this leap, or to just stay put and
conquer the local market.
Local or Global
Today, with the world becoming connected and everything seeming to be a stone’s throw away, many companies are entering the global arena. A survey conducted by Wells Fargo among American companies in 2016 found that an overwhelming 87 per cent were of the opinion that international expansion was vital for long-term growth. Be that as it may, there are still a handful of companies that see the benefits of staying local in order for their business to thrive.
Staying local does not mean having just one store in one location. What is meant by staying local is to concentrate your business on a particular city or region, even if you operate online.
By staying local, your
business will have a more defined market, a clearer focus and a more targeted
and personal branding. Staying local may also allow you to nurture the
relationship between your business and its customers, which is one of the most
important parts of a business. On the other hand, going global results in an
increase in sales for your business as you open up your products and services
to consumers from all over the world. This allows your business to not depend
entirely on the local economy.
Knowing How to Decide
To know which path will benefit your business more, you will have to know the deciding factor. The deciding factor for any business is its target audience, followed by the market for expansion in the industry.
Social media is undoubtedly one of the best tools to find and to get to know your target audience better.
With the aid of social media apps such as Facebook and Instagram together with analytic tools, you can easily collect important data, identify and resolve issues as well as plan the growth of your business—all without costing you an arm and a leg. For instance, you can use the demographics data gained from a promotional video you created to identify the interest of your target audience, and thus make the necessary changes to your business plan in order for it to grow.
Going Global
To determine whether to stay local or to go global, be sure to know your business inside out to secure a bright future for your business.
What is the most
challenging issue for companies looking to expand globally?
37% – Knowing where to start
34% – Finding the right local partner
14% – Dealing with different government rules
3% – Managing cultural issues
3% – Others
As can be seen from the
survey above, the issue that most companies often find challenging when going
global is to know where to start.
If you have weighed your
options and decide to go global, it is vital for you to fully understand the
impact this will cost your business.
Bear in mind the words of
Diego Caicedo, co-founder and CEO of_OmniBank: “It may be better to serve one
country well than several countries poorly.” If you feel that your business
will be better off staying local, then it is advisable to just stay put and maintain
your usual business. However, if you see the potential for launching your
business at a global level, then make it your target and take the steps needed
to see it come true.
TAKING YOUR BUSINESS GLOBAL
Take One Step at a
Time
- Start
off with one particular product or service to test the market.
- Introduce
the next product or service if the results are positive and profits start to
roll in.
Create an
International Business Plan
- Consider
your overseas audience and international business goals.
- Clearly
define your international business objectives and ways for achieving these.
- Consider
the nature of your business, the intended target regions and projected returns.
- Include
any existing experience you or your employees have in international business.
- Consider
the global economic outlook.
Use Senior Executives
as Leaders
- Reduce
the need to train new staff—don’t hire an entirely new team.
- Make
senior executives with proven track records the leaders for your new team.
Know Local Laws
- Be
aware of the legal requirements of the countries in which you are planning to
operate to minimize and avoid unnecessary commercial risks.
- Develop
policies, procedures and handbooks that take cultural and linguistic
differences and the consumer habits of a particular region into consideration.
Keep Local Employees
Happy
- Create
remuneration and benefit packages that are attractive to local staff.
- Hire
a translator to help you to communicate better with local employees.
Foster Good
Relationships
- Develop
a strategy and model that will support the ecosystem of your business. Create
alliances with other parties or develop a distributorship programme.
- Form
relationships with suppliers and local marketing contractors in every new
region.
- Form
regional sales goals requiring the involvement of local parties to keep the
relationship active.
Get a Helping Hand
- Get
experts on board, such as professionals that can help you navigate
legal/compliance requirements.
- Get
in touch with organizations in your target countries that are set up to attract
investments.
Be Willing to Modify
Products/Services
- Products
or services may need to be modified to appeal to the target market.
- This
may include product name or packaging.
