Follow these steps if you want to expand your business abroad

business abroad

Do not think that because you have a micro, small or medium business, growth opportunities are limited. On the contrary, your business can be the ideal place to make yourself visible and make yourself known to the world.

It is common to find in the visions of the companies ambition to expand into ‘x’ amount of years nationally and then internationally with the intent to make yourself known, to show both the company and the products or services offer. Moreover, only in the country, there are 2.5 million micro, small and medium enterprises, which 66% are concentrated, according to the latest report.

SMEs are so important in the world because they constitute 90% of all companies and more than 50% of employment, according to figures cited by the article FedEx Express US airline and logistics.

business abroad
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The way in which many companies have wanted to grow and take more strongly is to export, even according to the study Global Opportunities: Examining Import and Export Trends Among Small Businesses, commissioned by FedEx and conducted by Harris Interactive, 38 % of SMEs currently export abroad.

Study also revealed that SMEs who decided to expand abroad, come to generate income averaged $ 1.5 billion a year. This would allow them to achieve experience an annual growth of 11% or more of those who do not.

However, although we are presenting data on SMEs and export business does not necessarily mean that is all you need to know to achieve review and expand into other countries? It is much more than that, says Santiago Ospina, commercial director of Pragma, a company that provides technology solutions to improve the position of customers from the market, “internationalize a company is no easy task, requires a well – founded strategy and a lot of research market you want to reach “

Thus, Ospina explains that to work properly and responsibly to perform must be clear about the reasons that are driving undertake this option to reach out to a larger and different audience that usually you know.

Then, recognize whether their reasons are proactive or reactive, which means by this, the first concerns if the way the company wants to undertake is simply a matter of determination, wanting to take a new direction. Moreover, the second, means that the company is obliged to seek an opportunity in a foreign audience because of the changes that are generating competition.

If you are proactive, evaluate the following:

  • Performance advantages: possibility of having more and better business in other countries of the world income.
  • Products / unique services offer your customers exclusive, something not easily found in their geographical location. Offer a differentiator plus not only your company but also the consumer.
  • Technological advantages: after having analyzed the market you want to reach, it is possible to know if it has any advantage of such front companies that may be deemed “competition” to reach great strength to that place.
  • Tax benefits: this is one of the reasons given greater weight when internationalize a company. Investigate how taxes are handled and whether the company can be seen benefited them also be aware will prevent mistakes in which you can be punished.

You may also like to read another article on BSOinvest: 10 reasons why SMEs should open a business blog

If you are reactive, evaluate the following:

  • Review the needs and objectives of the company: guiding them achieves plans and internationalization strategy.
  • The strategic need to expand services: taking into account the profitability and the ability to offer unique services that enable the company to have a technological advantage. Evaluate if you want to do in response to changes in their business environment, by competitive pressures or as a competitive strategy in order to pursue customers who want for your business.
  • Ask yourself what it is you want to accomplish: usually targets entrepreneurs when deciding to internationalize its business are: the export platform or market expansion
  • Diversify the market: the possibility of offering new products or services that did not exist or open the borders of the company to other audiences.
  • Cost efficiency: produce in other parts of the world can significantly reduce operating costs of a company.

Step by step to start with your idea of expansion

  • Check where the customers are.
  • Check that need the company in accordance with the objectives proposed in the strategy.
  • Choose the market you are going to get.
  • Check consumer trends in the chosen place and learn how the market moves worldwide.
  • Consider the political and social climate of the country where you plan to open your business, it is important to understand the market dynamics.

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