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International Business Expansion Strategy:

Growing Your Business Internationally

Expanding your business into the international market is often the next step for any company that has successfully conquered its domestic land. If you feel there is a large gap in the market for your products or services abroad, and have the finances and ideas to put in place a plan of action to help it grow overseas, then international expansion can be an advisable step.

Before deciding to expand abroad it is vital you ensure your business has enough finances to be able to. There are various checks to make but once you are confident that growing your business abroad is achievable it is time to consider which strategy will be best for your company. Read on below to learn how to expand your business internationally.

Establish a Joint Venture

Especially for a small businesses, expanding abroad alone can be an exciting yet particularly nerve-wracking move. If it all goes wrong you can end up in serious trouble. For this reason, setting up a joint venture with one or more other companies can be a good choice. This could be a joint venture with another British firm or one in the country where you intend to expand your business network.

For companies that have limited knowledge of the foreign market, finances or a small team this is often the best option. It will enable you to set up a marketing and/or manufacturing presence in the region, with a foreign partner ensuring all the correct taxes, regulations and other details are met.

Adapt to the New Environment

While you will want to keep your branding, products and services as close as possible to what they are, depending on where you are expanding to they will need to be adapted. Obviously aspects such as the language you use in marketing and promotional materials will need to be changed to the country’s native tongue.

Research the existing market and what is popular so you can make other adaptations to ensure your business is a success. It is important to respect cultural practices and you may have to create new ideas, so in such cases it may work better if you employ or work with bilingual staff.

Open a Subsidiary

Depending on the size and power of your business it can be worthwhile to open a subsidiary rather than a joint venture or simply expanding. This is where you essentially start a new company in the desired region that is owned and controlled by the existing one.

It allows the subsidiary company to set up in a way that meets all the challenges and requirements of the region. Opening more subsidiaries further down the line should then be a lot easier in other areas of the world as well, with plenty more opportunities to expand.

Set Up a Strategic Alliance

Creating a strategic alliance is similar to a joint venture except it does not form a separate entity. Instead it can be more that your business produces the products or services and another company in the area expanding into takes care of the sales side of things.

In this case all that needs doing is to draw up a written agreement between the two businesses and it provides a quick way to enter a foreign market. It can lead onto forming a joint venture, franchising or licensing.

Export Direct

If your company just wants to test the waters or for certain reasons does not want to work with other businesses then exporting directly to new customers abroad is an option. At TNT we offer a range of shipping tools at a cost-effective price to easily export your business’ products all around the world or import into other nations.

Depending on the amount of orders you receive in the beginning this could be the most economical method, especially if they’re only small items being dispatched. If it’s successful then turning it into more of a joint venture can be best for both parties too.

When you’ve decided on the best strategy for expanding your business abroad it is important all the necessary planning and calculations are made to ensure it will be a success before you enter the international market.