For many companies, the market in which they started and then developed their business is not large enough. For them, growth in countries around the world is the main goal, and expanding sales is the motive. This goal can be achieved in several ways: establishing a branch, acquiring a company, buying shares, investing, concluding new foreign partnerships
Initiating international business development is not just a decision and its implementation. There are many challenges to be faced, the biggest of which are compliance and legal regulation. The transition to the global market, however, offers specific advantages:
- You give your products or services an extra chance to extend their lifespan by finding new markets to send them to.
- You reduce dependence on the market in which you originally developed the business
- If your business depends on destabilization in your market or the use of your products / services is intended or limited to certain seasons, you can equalize sales in markets of opposite fluctuations
- You will learn the way the business works in the competitive environment abroad and thus learn how to compete against them in the market, etc.
If you are bothered by the question “In which country you should start a business” the option is innumerable. Just turn the globe and touch a country with your finger 😊
But, not so fast!
If your finger on the globe fell on, for example, Japan here are a few key questions you should ask yourself:
- Will the product / service you sell comply with the cultural characteristics / determinants of the country in which you are developing your business?
If your product are “mlinci” then Japan is certainly not a good choice of country in which to offer your products. Market research will give you the answer to this question
- Has your target market had a chance to get to know your product?
If the answer is no, you need to know that educating residents, marketing and sales activities that you have to carry out, cost a lot of time, but also money.
- Are you ready for a local competition?
- Do you feel welcome and comfortable in country where you should develop a business?
In order to adequately manage the sales chain in the early stages, it is advisable to spend some time in that city you chose for your business and to get acquainted with the language and culture of the local people.
Do not be discouraged if the answers you receive are not what you expected. Every product has its customer and every idea will surely succeed somewhere, you just need to find out where 😉
Nevertheless, let us imagine that the answers obtained are in accordance with desired. Finally, the time has come to export the product. What now? What difficulties can you face at this stage of the business? Here are some of the most common:
- Currency fluctuations
- Careful planning of the strategy (it is a common mistake people make in starting their business abroad)
- Cultural, legal, administrative, social and economic differences that shape the market
- Differences in prices, shipping, payment terms, packaging
As your business matures in parallel with the growth of market share, there is a possibility of meeting the growth constraints of your original growth target. Planning and implementing a growth strategy to develop new markets and expand your business, before your current market aligns, will not only help your business survive difficult times, but could also help you significantly, compared to the competition.
International business development professionals must be able to work at a high level in providing customer service, developing a strategy for entering a new market, and assessing their own organization’s ability to meet customer needs.
Traid Ready lists these seven categories of knowledge, skills, and attitudes as key to any international business development professional:
Determining the feasibility of international trade
International business development professionalist understand the importance of assessing potential profits versus potential risks in order to determine market feasibility as accurately as possible.
Market expansion planning
As an International Business Development Professionalist (IBDP), you must have the ability to develop a detailed international business plan and assist in its implementation. He will understand and develop strategies to manage all the risks identified and defined in the plan.
Creating effective market entry strategies
IBDPs understand the importance of researching market entry opportunities, then they analyze them, and finally select the best entry strategies and strategic partnerships for their needs. They then apply this knowledge by conducting a comprehensive assessment of the possibility of entering the international market for the export of products or services and recommending the optimal market entry strategy.
Flexible production of products / services
It is vital that any IBDP understands the importance of adapting products and services to the international market. When he understands this, he should apply all his knowledge in order to maintain a competitive advantage when adapting products and services to the international target market.
International sales and marketing
A good international business development professionalist understands that while marketing can create demand, an effective sales strategy is key to making money from that demand. It thus ensures that the organization’s product or service meets the needs and interests of the international target market or a particular client, customer or partner.
IBDP understands intercultural differences and their impact on international business. They will always tailor their business practices to demonstrate intercultural competence and build better relationships with other professionals around the world.
International law and ethics
IBDP knows the basic legal principles of international business and meets all domestic and foreign legal requirements governing international trade activities. The establishment of international law enables them to make ethical decisions and recommendations to support professionalism and organizational decision-making in international trade activities.
Did you think that international business development was a mere decision and an easy entry into another market? It is now a little clearer to you that this process is quite complex. Therefore, it is not surprising that experts for international business development are one of the most sought after and fastest growing positions in global trade.
So, if you have a potential IBDP in yourself, a bright future awaits on you 😊