After recently celebrating the chain record set by our company in China, my new international business soon became cold.
It seems that my American success formula does not work with my foreign partners, they have always told me different ideas to compete on their territory. If I only know what I know now; I could have saved countless hours, endless brains and a lot of money. I think I should do some homework first.
Before you plan to expand your business and go global, consider the following eight points:
Are you a national player at home? from
Your business needs in different locations will be closely related to the size and success of your company in the country. In today's era of easy access to information, consumers and business professionals in most countries know what is popular in the US, not what. If you become a hot business here, you may experience the demand for your brand "on there."
2. Which business model should you use? from
Franchise, licensing, joint ventures and company-owned business models have their pros and cons. Some need more labor or more upfront capital. No matter which model you choose, you will definitely increase your profit growth rate in the next few years.
3. Find the right partner. from
Protecting the right business partners in each country is a top priority for success. Be sure to check the financial status, influence and reputation of your potential partner in the local business community, access resources and experience bringing your country's brand to his/her hometown. In smaller countries, be sure to check his/her political influence and history, because politics and business are often intertwined.
Do your homework. from
In some countries, there may be tariffs or regulations that may hinder your success. Please note that the differences between countries may be large. Don't fall into the trap of widespread mention of growth [such as "Asia"] because neighboring countries in geographic regions can vary widely. Bottom line: Know as much as possible about each country you plan to enter before placing it in your list of extensions.
Do you have support infrastructure? from
Will your domestic supply chain logistics support foreign expansion, or do you need other sources? Is your finance department set to handle foreign transactions and currency conversions? If someone from around the world decides to call in the middle of the night, will someone answer the phone? Is your IT department ready to handle foreign information operating systems?
6. Do you have an operational model that can be copied? from
When expanding internationally overseas, it is important to understand that your cost structure can change significantly. Supply costs, labor costs, real estate costs, and seasonality can all pose significant obstacles to your success. Be sure to develop a simple operational model where the main components can be clearly identified and benchmarked against your existing model.
7. Don't worry! from
Plan your growth by spreading risk through a balanced country portfolio approach. This is similar to diversifying risk when investing in the stock market. Otherwise, growth in opportunities rather than strategic development may lead to poor communication and inconsistency, lack of on-site support, skyrocketing management fees, brand dilution and even litigation. Trying to manage a 4,000-mile lawsuit in a foreign justice system will not only make you fall asleep, but it can also cause serious financial harm.
8. Don't count on the unexpected gains overnight. from
International development is a continuous learning environment. Your business will experience new challenges, issues and concerns. There will be setbacks. Most companies, even the most successful companies in the country, experienced losses in the early stages of their international growth. Achieve your international development through a five-year successful business plan.
International expansion may be an attractive and profitable business proposition. After careful planning and planning and execution, the international business unit will add value to your overall business. In addition, if your business is in the US, then your international business unit can ease the depreciation of the US dollar and the favorable exchange rate will fall to your bottom line.
Orignal From: Extend your business internally - 8 questions to consider before going global
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