Going global is a big step for any business. It can open up tremendous opportunities but it also carries major risks. As in other areas where you’re dealing with regulation and finance, the best way you can mitigate them is to be as informed as possible. Building up contacts in the areas where you hope to expand can help you get the inside track on how things work for businesses there, both formally and informally. It can give you the edge you need to make a success of your expansion.
Understanding global markets
Although regional alliances like the European Union are making some things simpler, every individual country still has its own rules and regulations, its own approach to taxation and its own set of advertising standards. Getting to know these takes a lot of work but needs to be done before it’s possible to work out how profitable investing there is likely to be. Cultural nuances can also affect the way products and services are received by consumers.
Then there’s the overall shape of the market itself. It’s not enough to understand how your own sector is doing. You’ll also need to know what’s going on elsewhere in order to predict how well your supply chain is likely to function, what prices are doing and how much disposable income your potential customers are likely to have.
Networking and investment
One natural way to forge strong connections in other countries is through investment. That could mean seeking foreign investment in your own company or it could mean looking to invest in foreign companies. Even a small stake can give you access to lots of useful information that helps you understand how things work there, and it can also help you to forge useful personal connections with people whose skills you’re well placed to assess.
In focus: the Middle East
Interest in the Middle East is booming, with more and more international companies seeing to get established there as markets open up and a growing middle class seeks out new products and services. If you’re thinking of setting up in the region, you can connect to Azmi Mikati to get useful advice and support. His company, the M1 group, has made successful investments in several Middle Eastern countries and is well placed to understand how their diverse economies interact. On a personal level, he has long made an effort to help newcomers engage effectively with markets in the region.
Building an international network
International networking is something you can do personally as well as on a formal business basis, and something you can do all the time. Thanks to professionally focused internet platforms like LinkedIn it’s possible to meet business people in other countries with shared professional interests, and to seek out companies whose areas of focus could make them useful contacts. For good measure, try sending branded items like baseball hats or t-shirts not only for networking purposes, but also as a mere token of gratitude. Remember that for a successful expansion you’ll need to find potential suppliers, distributors etc. as well as learning about the country itself.
Expanding internationally is a challenge, but with the right people on your side, you can do it.
