Expanding Your Business Internationally: How to Plan for Success in New Markets

 International business expansion can be a great way to draw new business to your company. Although startups are often eager to pursue international markets right away, the best approach is to grow the business domestically first before expanding abroad. It is a great deal more important to first prove the business, work out any kinks and understand your systems and processes before considering options for international growth. Why? Because every opportunity for international growth brings with it a new set of obstacles that must be overcome before a new product or service can be delivered. Your company may find itself dealing with language differences, different time zones, movement of product over long distances and having to comply with local laws in order for business to flow smoothly within the new market. The best way to prepare for international expansion is to already be very well established in your methodologies and to have proven your systems and compensation plan. Once you have the processes in place to manage your business and have proven your ability to serve and keep customers, your company will be ready to start planning for international expansion and researching new markets.

As with your domestic business, you will need to consider how to get your message out there. The Direct Selling Association is a great option when pursuing markets such as Japan that are open to direct selling and network marketing. However, it is of paramount importance to consider the appropriateness of a given market over the ease of entry; be willing to sometimes say no to those who would pull you into a market before you are absolutely certain that your business is ready to go there. Once you are ready, plan to go where your leaders can help you promote and grow the business and have a ready-made group of people who are already familiar with the product and are eager to promote it there.

International growth can be viewed as a four-stage process: discovery, pre-market, pre-launch and launch. During the discovery phase, you are considering new overseas business opportunities. Market research will be key to deciding exactly where to expand the business, so have a budget set aside for this purpose. At this stage you will also be identifying local vendors to help set up and support the operation as well as the mechanisms for fulfilling orders, collecting revenues and paying out commissions. Another key component of market research is product viability. Using topical skincare as an example, consider whether the product itself meets the needs and is compatible with the skin type of consumers in that market. Likewise, with a nutritional supplement or a similar product, the market research must demonstrate that the product will be attractive to and meet the needs of consumers.

Once the initial market research is complete, the pre-market phase begins. While it is not necessary to have a launch date set in stone at this point, it is useful to consider an approximate timeframe – say, six to twelve months – on which to base short-term goals and deadlines. During the pre-market phase, you will be establishing banking relationships, having your compensation plan reviewed and learning local laws and requirements for doing business in that market. This is the time for working out payment mechanisms, including how to take payments and how to remit and make commission payments. It is crucial to have these aspects of your international operation worked out before drawing new customers within that market if you want them to be committed to your products and your brand. At this stage, your company might also consider doing some soft marketing by advertising ahead of time exactly what’s on the way and when to expect it. This can be a great way to attract early adopters who are ready and eager to buy your product as soon as it comes to market. Later, when the “soft launch” or pre-launch takes place, you will already have an initial customer base that is excited enough about the product or service to forgive any hiccups during the first days or weeks of operation and who will also provide valuable feedback to incorporate into the “hard launch.”

Based on the progress made up to this point, you will be ready to set a pre-launch date on which you actually open for business. Once you have your system worked out and are able to make commission payments on time and deliver the promise, it is time to really build the business. Soon afterward, once your operation in the new market is well established, you will be ready for the formal launch. This can be an arbitrary time in the future after the business is built and you already have a dedicated organization within that market. At this point, you could stage a grand opening event and invite the general public, local media outlets and all the local business partners who have helped to bring the project to fruition.

Looking at international business expansion as a four-stage process gives a clearer view of what it really takes to get a product to a new market. Though it may be tempting to move into a new market before all the minor details have been worked out, your business stands a much better chance if new operations are put into place before the launch date rather than “launching” a product first and saving these often make-or-break details for later. By moving through these four stages and by being clear with local business partners on where you are in the process and how you plan to do business, you can in turn set realistic expectations and increase the odds for success in the new market.