How to Grow a Business Internationally

Once your business reaches a certain level of success in your home country, it's only natural to ask yourself ‘what’s next?’. Most of the time, the next steps are typically expanding the business internationally, perhaps even globally. 

Expanding your business internationally is an exciting journey that can open the door to new markets, opportunities, and growth potential, yet many businesses underestimate the complexities involved. This is where we can help! 

We’ve compiled a 6-step guide to walk you through the key steps and considerations to successfully grow your business internationally, helping you avoid common pitfalls and hopefully maximize your chances of success.

But first…

What are the Benefits of Growing your Business Internationally?

While many businesses choose to expand their operations overseas, a considerable number remain hesitant to make the jump. 

So, if you’re currently in this position, here are just a few benefits of growing your business internationally….

• Expanded customer base - Expanding your business internationally allows you to reach new customers and tap into new markets with growing demand, increasing sales and revenue potential
  
  
• You can diversify your revenue stream - Purely relying on one single market can be pretty risky, especially in this day and age. International operations spread risk and create more stable income sources by balancing seasonal or economic fluctuations across regions
  
  
• Enhanced brand awareness & credibility - When a company has an international presence, their brand credibility is naturally enhanced, trustworthy, and competitive on an international scale.
  
  
• You can gain a competitive advantage - An international footprint would position your company way ahead of competitors who remain domestic, and provides leverage in terms of market share and global recognition.

Expanding a business internationally offers numerous benefits, making it an attractive growth strategy for many companies

Now you know the many benefits of doing so, the next step is actually knowing how to take the leap….

How to Grow a Business Internationally - 5 steps

Here are 5 steps to growing a business internationally:

1. Conduct Market Research & Prepare

The first step to growing your business internationally is to take time conducting market research and identifying if there is in fact demand and opportunity for expansion in the new market.

This will involve gathering data on the economic, political, and cultural environment of the markets you’re hoping to expand into, as well as the demand for your products or services.

Without analysing this information, how will you know if your product or service is actually a good fit for the new market?

There are a wide range of sources you can use to collect information for your market research, whether it be trade publications, government websites, industry reports, or market research firms.

At this stage, we also recommend talking to other businesses who have successfully expanded into international markets, and learn from them.

2. Develop Your Business Plan

Now the fun part - it’s time to develop your business plan!

This process involves setting goals and objectives for your international expansion, and defining the various strategies and tactics you’ll use to achieve them. This plan should include things like a competitive and market analysis, a marketing and sales strategy, a financial plan and a plan for managing general operations. 

Without this new business plan, you’ll find it increasingly difficult to stay focused, as all successful business ventures need a clear roadmap of how they’re going to do things.

A business plan will also be a valuable tool when/if it comes to securing financing and convincing potential investors of the viability of your business.

3. Identify Partnerships, Networks and Distributors

Once you have your business plan finalised, the next step is to identify partnerships, networks and distributors in the target market.

By this we mean, finding businesses or people who can help you enter and flourish in your new target market. For instance, if you are an e-commerce business, you’ll want to find a distributor who can help you sell your products in the new country. 

On the other hand, if you offer a service, it would be a good idea to find a local partner who can provide the necessary expertise and connections to help you grow. These individuals can work with you to help you navigate the local business environment, and provide valuable insights and connections, which would otherwise be hard to find.

A great way to build connections with companies and individuals is via coworking spaces. In case you didn’t know, these are shared working environments where individuals, freelancers, startups, and businesses of all sizes come together to work in one place. 

At Tramshed Tech, we foster networking and partnerships by creating an ecosystem where businesses, freelancers, and professionals can thrive together. Find more about our coworking spaces here and get in touch via 029 2010 3090 with any questions you may have.

Discover more reasons why you should use a coworking space, here.

4. Sort Your Finances

The fourth step when it comes to expanding your business internationally is to sort out/ secure your finances.

This is a really important step as international growth will naturally involve significant upfront costs, such as market research, legal compliance, hiring, and setting up operations.

Properly sorting your finances will therefore ensure you have the cash flow and resources to cover these expenses when they occur.

If necessary, there are a variety of financing/funding options available, such as grants, loans and investments from venture capital firms or angel investors. 

5. Manage Risks Involved with International Markets

Every country has their own laws regarding business, from employment and product standards to consumer rights. And if your business fails to address these requirements, it can result in legal issues. 

This is why it’s crucial that, prior to expansion, you conduct thorough research (as touched on at the beginning of the blog) and ensure compliance with the legal and regulatory frameworks of the target market to avoid potential complications.

6. Establish Your Presence in the Global Market

The final step is to get out there and establish a presence in your new target market, whether it be setting up a physical office for your team, or securing a retail location to sell your products to the public. 

You’ll also need to register your business with the appropriate government agencies and ensure you have the necessary licenses, permits, and tax registrations to operate legally and efficiently in the new market.

Remember, international expansion is a process, and there’s a high likelihood that you’ll need to adapt your approach as you learn more about your target market and new customers. 

With this in mind, we recommend that you regularly review your performance and make any necessary adjustments to your strategy as needed. 

We are Tramshed Tech: a collaborative community where startups scale up. Tramshed Tech is the best place to start and grow your business as we understand the challenges entrepreneurs face. 

We build beautiful workspaces with business support and skills programmes to help organisations thrive and grow. Find more about our spaces here, or head to our blog page for more articles on growing your business.

Written by Kate for Tramshed Tech.