Businesses thrive because of their willingness to take risks and explore uncharted territories. Launching a product that somehow deviates from its goals and vision is one risky move but actually has the potential to give rewards. It happens when they have innovated something in the market and eventually succeeded through a product they never thought to become a hit. Another instance is when someone imagines starting a business in Germany, for example, despite the lack of presence in the European market and their experience with these people. Risky move, no doubt, but it opens many doors for potential and other returns.
The point is that most enterprises and forms succeed when they take risks, do more, and think outside the box. Think of it as a teenager going out of their comfort zone to finally discover something within their psyche.
We are not asking you to take risks or do something that might not work for your business, like starting an overseas business expansion without considering the long-term goals and other things a company must do before implementing something like this. Aside from that, the goal is not to persuade everyone to do more and explore outside the box because things differ for all businesses.
Instead, let us address the misconceptions that surround an international company expansion or the statements affecting people’s opinions and thoughts about these things. We will debunk them to help everyone understand things better!
#1: FOCUS ON YOUR HOME MARKET FIRST
Home is where the heart is, they say, or it is where you shape your personality and other traits in life. In the case of formulating a market expansion strategy, you would hear figures and other people in the industry putting a premium on focusing on your home market or the place you have established it.
However, there is no need to do this because some actually thrive outside their countries or the area they operate the business. You can see it as a teenager who did not have any future whatsoever in their hometown but was able to thrive and reach greater heights somewhere else! All you have to remember is to calculate the risks of exploring.
#2: INTERNATIONAL EXPANSION IS FOR BIG COMPANIES ONLY
There is no truth in the statement that formulating and eventually implementing an international expansion strategy is only for big companies or anyone who has already proven successful in the industry. In relation to the first misconception in this article, anyone is free to consider these strategies for many reasons. First, a market is not limited to where you have started the business or the area it mainly serves. In fact, some even succeed outside those places, and that is one possibility to consider.
The second point is that the online and digital world bypasses distance limitations. More and more businesses have the opportunity to connect with other countries and people through these platforms.
#3: LEARNING THE OTHER CULTURE IS UNNECESSARY
One must not overlook the importance of learning about the culture of a particular country for many reasons. People living different lives and traditional practices are the main point of exploring these things. Imagine, when starting a business in Germany, for example, realise that life in that country is different from the United States, Japan, or anywhere else in the world. The second reason is the behaviour towards the market, specifically their habits with a particular product. An example would be a consumer good that works for people in tropical countries, such as Singapore or the Philippines, but does not give the same effects for those in colder climates. The consequence is failing to serve your market and meet their needs.
#4: LOCAL EMPLOYEES AND REPRESENTATIVES ARE NOT NEEDED
Local employees and other representatives are your best bet when implementing an overseas business expansion plan because they are the key to communicating with the target market. For instance, if you are seeking to explore the Asian market by starting with Japan, hire people from that country because they know how to interact with people or optimise your marketing campaign materials to promote products. They go beyond the idea of translating or interpreting your latest innovation for people who do not speak the same language because they serve as a bridge between customers and the business from outside. (Tip: Local employees are also a great way to embrace diversity in the company and adapt to the global society.)
#5: LANGUAGE IS NOT THAT IMPORTANT FOR EXPANSION
As mentioned above, communication plays a role in your international expansion strategy. Connecting with the target is the purpose of emphasising the importance of language for your business goals. For instance, starting a business in Germany means learning about the language and the cultural context behind every utterance to further interact with your audience. It means knowing the meaning beyond the words! Second, products and services should fit the needs of the people, and it starts with the language you use. Providing them with the one you have in the United States is a big no-no because Germany is different. (Tip: Learn about the culture as much as possible and communicate with them in their language to make them feel at home.)
Now that you have already addressed these misconceptions about starting a business in Germany, or anywhere else in the world, and implementing a company expansionplan to succeed in the industry, the goal now is to make a decision that works for everyone and the objectives you wish to achieve. Calculating your risk is another step to take because that is how you explore something you are unfamiliar with and try new avenues for the company. It lets you minimise the effects of whatever mistake you have overlooked.
Are you looking into the possibility of starting a market expansion strategy because you want to reach greater heights or explore another area for your products? Collaborate with Scaler8, and experience their services that will surely help you succeed. Visit their website for more information.