Offshore business expansion has countless benefits – global expansion of your business provides access to ripe new markets and a broader customer base that can positively affect your profit margin and bottom line; by targeting foreign markets, you could even find cheaper and more efficient ways to tailor your supply chain and improve your business model. What essential steps should you take when preparing your business for global expansion?
Research target market – Before setting up your offshore business, ensure that you do all of the necessary due diligence and thoroughly research your target market. Failing to comply with local laws and regulations can be costly and damaging for your business, so make sure your business model falls within the rules. Investigate any consumer trends and patterns in the new market and don’t hesitate to adjust your business model as necessary. If possible, hire professionals with proven expertise in international business to assist you with the research/transition period.
Develop a business plan and strategy – Once you’ve completed due diligence and gained a better understanding of the market, it’s time to develop a tailored business plan and create an expansion strategy. Factors to take into account here include the receptiveness of your target market(s) (which you should be able to gauge based on detailed market analysis), the organisational structure of your offshore operation, an entry point into the market and a step-by-step roadmap for success.
Hire a dedicated expansion team – For the best results, establish a dedicated expansion team using the beachhead strategy, which is based on the military concept of conquering relatively small borders one by one. This focused team can pool their resources into aiding expansion whilst other employees continue to operate in their day-to-day roles, which should ensure that your domestic operation continues to run smoothly.
Make sure that your business is ready before announcing your expansion – It’s absolutely essential that you have your business in shipshape condition well ahead of the launch and before you publicise your offshore expansion. Launching a business before it’s ready can have damaging effects and your business could be left vulnerable to unidentified weaknesses or gaps in the plan. Make sure that everything from organizational structure to employee payroll is well-established before making any major moves.
