In the age of globalization, the decision to expand your business into international markets is really a no-brainer.
Once you have created a target list of potential new markets, done the research to assess the economic stability, legal requirements, infrastructure available as well as costs, you are ready to set up shop.
But how do you measure success once you have started entering new markets? In this blog we share 4 goals to consider when expanding your business internationally .
Set goals for your competitive position in each market that you plan to enter based on your previous market research. For example, while you might set a goal of being one of the largest players in your local market, a realistic goal for a foreign market with strong domestic competitors might be a modest market share that allows you to maintain reasonable profit margins.
Entering a new market doesn’t just mean making your products available internationally. Set some objectives for how you’re going to build brand awareness and drive sales through marketing and advertising tactics. When you launch, record your monthly results by channel, so you can identify areas where you’re achieving your KPIs, as well as areas where you need to revisit your tactics.
Very few businesses manage international expansion without some source of additional funding. Set a budget for growing internationally (which will help you secure funding further down the track) and outline a trajectory for profitability so you have a plan in place to pay back the money you’ve acquired.
Forming partnerships in foreign markets is key to keeping international costs down and running your business efficiently. Set a goal of establishing a local supplier in each region you do business in, or sourcing a domestic customer-support partner. You can also include your partners in other expansion goals to track the success of each relationship.
Once you’ve identified your goals and KPIs for expansion, set them against a timeline that’s realistic based on your resources and budget. Measuring the right metrics for success and maximizing efficiencies is incredibly important for any business owner, but especially for those who are trading in multiple markets. Once you’re up and running, take control of your expanding business by managing all your operations on one platform.
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