Four tips for companies to enter international business

By John Sterling

Many organizations, regardless of their size, are seeking opportunities to enter into international business. However, before entering a global market, it is important to strategically identify the motivation behind your decision to explore foreign markets. Many companies do not have the knowledge to take advantage of this potential source of new revenue stream. If you are looking to develop a presence in global business markets, here are a few tips to help you out.

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Identify strategic needs

Entering into international business provides companies with the opportunity for expansion and increased revenue. However, this initiative has to be in harmony with the overall strategy of the company. So you need to make sure your international business plan is consistent with your business strategy in order to increase the chances of success.

Also, address strategic aspects of international growth such as sales, marketing and distribution. Incompatible, intermittent, or nonspecific deployment of resources towards international expansion can lead to an underperforming plan that will soak up your limited resources with small return. Most of all, you must have clear direction, dedicated resources and full management support.

Get to know your potential market

No matter what plan a company adapts, to tap into an international market, a prior research must be adequately conducted. Learn about your prospective markets, particularly their politics. Also do a research about the international acceptability of different marketing practices. Quotas, tariffs and other trade guidelines would be necessary to investigate when entering a new market, in order to have a full understanding of the logistics and pricing of products globally.

There are lots of online resources that can provide you with useful research and information. You may also consider hiring an international business consultant to give you country-specific statistics in a customized way. Better still, you can assign focus groups to examine your potential international market in order to determine the best market entry strategy.

Understand any regulations

Regulations and documents are the informal language of the international business. You need to understand any terms that could hamper your opportunity. Besides the barrier to trade, get to know the legality of your brand in your potential market, as this knowledge could save you a lot of legal issues. Become an expert on the international terms and conditions governing business. Also make sure to renew all the necessary documentation as well as export licensing procedures.

Seek appropriate assistance

Before going global, you may also need to secure a respected agent or representative who specializes in international business. Companies expanding or initiating into international business consider such professionals to be an important partner in helping them succeed internationally. Hiring experienced professionals to work with you in entering new markets can help you avoid missteps and get the job done right. The range of services offered may vary, but generally they help companies to implement, conceptualize and manage big or small global business development projects.

International business holds many opportunities for small and large companies. It promotes sales and proceeds, improves a company's reputation and provides a great way for businesses to manage seasonal fluctuations. By considering and implementing the above mentioned key steps, you can successfully enter the international trade and capture the dramatic revenue growth.

About the author: John Sterling is a business consultant and a writer. If you need some help with international business and trade, visit Sourcing Agent.