Global Business

When Is The Right Time To Take Your Business Global?

1. Do you have the required cash to go global?

The expansion of a business, whether domestic or international, is costly. However, expanding a business overseas costs more than domestic growth. Investigating the company's cash flow management is essential to determine whether you have the cash to go global. Only when you have the cash to go global should you consider other criteria. 

2. How familiar are you with the international market?

All countries have different rules and regulations that directly impact a business's tax, trade and other elements. A few countries are friendly to international companies, while others are not. Do the countries you have selected to go global have friendly market regulations to give your business a significant revenue boost?

3. What is the overseas demand for your product/service?

Expanding your business overseas only makes sense when there is a demand for your product or service in the international market. Therefore, thorough research is required to know the market size of a foreign country to understand whether your business is feasible to expand overseas. 

To analyze the market size, it is not vital to see whether the consumers are looking for the exact same product or service which your business is offering. You can also consider related products to analyze the market size. 

4. What does the market research indicate?

It is vital to consider the interpretation of market research to help identify whether it is an emerging or declining market. If the market research delivers promising results, consider the marketing method of the products and services. The decision to expand oversight requires plenty of research; use Speed Test to ensure that you can efficiently carry on your online research without any lagging issues because of the internet speed. 

5. How strong is your business growth?

Before a global expansion, it is crucial to ensure that your business is thriving and stable in the domestic market. It is only when you have a solid customer base in the domestic market it is recommended to pursue international customers. Furthermore, it is crucial to understand whether you have a stable domestic market revenue stream. 

6. Can you automate home operations?

When going international, most of the top-level employees of the team will have to invest their time and effort in the operation of the business in the foreign country. In such a scenario, ensuring that your home operation can be automated with minimal guidance is essential for a smooth operation in the domestic market. In addition, good internet speed is a must during global expansion. Use Robi to check the internet speed to ensure it is optimum to run a remote team. 

7. Will the cultural norms of the country accept your business?

Different countries come with different cultural values. Furthermore, different imagery houses different meanings in different countries. Therefore, a marketing strategy which might be apt for the domestic country might not be very suitable for the consumers of the other country. Therefore, the right time to expand your business internationally is when you know that the cultural norms of that particular country will accept your business ideology. 

8. How strong are your competitors in the international market? 

Expanding your business globally without understanding your competitors can be a huge mistake. When deciding to go international, try to find out whether the foreign country already has established players in the niche. However, having a strong competitor should not scare you away from the international market. If there is a strong competitor, the next action step should involve identifying their strengths and weaknesses. The SWOT analysis of your competitor will help you understand whether you can enter the market. If yes, what changes should you make in the product and services you deliver to get a competitive edge in the international market? 

Other essential factors to consider for figuring out the right time for the global expansion of your business includes legal laws, the economic and political scenario of the country and the cost of labor and building.