To expand internationally takes strategic planning and time while keeping in mind that we are also going to deal with increased competitiveness that makes it a complex process.
Photo by Tyler Franta on Unsplash
Expanding a startup internationally and going into new markets can bring many opportunities from which we should take advantage of and cast our nets wider and ensure a global reach and growth.
To expand internationally takes strategic planning and time while keeping in mind that we are also going to deal with increased competitiveness that makes it a complex process.
When you already have a business, you always think of ways to expand it, locally and internationally. Every business owner wants their business to be known worldwide, and of course, this comes with its own price - risk! Taking such a huge step is very important to know what you’re dealing with first. One of the most famous ways to extend your business is via outsourcing.
Let’s look at some of the main questions you should consider while expanding your startup internationally.
Why should startups expand internationally?
The few benefits that startups are likely to see while expanding internationally:
1. Boosted profits / Increased profits
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With the right planning and research, startups can bring increased revenues.
2. International brand recognition
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When your brand is recognized internationally, audiences from all over the world become familiar with your brand.
3. Access to global talent
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As the startup becomes increasingly international/global, you can find a skilled and qualified workforce with a high potential to work.
4. The location
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This is a very important step that you need to reconsider because the location is very important. What country do you want to extend to? What are the pros and cons of setting up a business in this country? You should do a little bit of research before you decide to expand your business.
What kind of barriers do startups face while / when expanding internationally?
During international expansion, startups face some of the following barriers/ obstacles:
1. Language barriers
When entering a new language market and doing business across borders we are aware that language is a major issue that leads to miscommunication. This is why we need to keep in mind that to find lasting/long-term success in international markets, startups will have to wrestle with local languages as well.
2. Cultural differences
Mutual understanding of each other’s culture is a must for business success. We’re aware that same as language barriers, cultural differences can cause big misunderstandings as well. Knowing the ins and outs of local culture is one of the first steps on the path to success for your startup’s international expansion. Training your international management team to truly understand their workers’ unique cultural differences shows you’re a company that cares for its employees, helping to create a culture of unity and dedication. You need to learn about the local culture of the places you’re going to expand.
3. Marketing issues
It is important for startups to approach the cultural difference from the best perspective rather than let it easily backfire because it can. International business marketing issues are closely aligned with language and cultural barriers. There are a lot of multilingual companies that offer marketing services, along with digital marketing as well. Techniques that work in one market may seem not to work in another market or some things that may seem good to do in marketing can be offensive in another culture which can truly penalize you in the international markets.
Options for competing in international markets
Companies need to understand the various options for entering an international market which are a lot:
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Exporting
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Licensing
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Franchising
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Joint ventures
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Creating a wholly-owned subsidiary
Tips for Expanding Your Startup Globally
The best way to succeed when you decide to expand your startup globally is to choose the market you are going to expand wisely:
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Which markets might best fit the products and services you’re offering?
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Where you'd best be able to navigate local regulations, laws and tax codes and regulations?
Let’s also not forget that startups who want to expand internationally face obstacles due to the different regulations of both local and foreign governments. So, while you’re deciding on which country to invest/expand in, we suggest that you should really consider regulators and institutional factors.
