For any business, international expansion is the best way to boost sales and profits, amplify the brand's reach and presence in both domestic and global markets.
But global expansion brings with it several challenges like new markets, laws, consumers, culture, business environment, etc. Hence, no matter how ready you may be as an organisational force, or how successful your product may have been in the home market, there are always some obstacles that may surface when you venture into a foreign market.
So here are five essential points indicated by CEO and co-founder Mettl, Ketan Kapoor that companies must consider before undertaking international expansion:
The scaling strategy
• Developing a business plan with a localised strategy is important to gain a foothold in the local market.
• Decide on the short-term and long-term strategies.
Then set measurable goals, like increasing cost-benefit, for instance, to quantify the progress and success of the strategy.
• Define the metrics for success.
• Establish a business model and organisational structure.
• Create a top-down annual budget.
Create a bridge team
• Assemble a provisional team of executives to implement the launch plans.
• Bring on board senior executives with domain expertise.
• A financial infrastructure must be in place before you launch the product. You can outsource this function to a local company for better compliance with local laws and regulations.
• Hire a stable leadership team before going to market.