A business owner’s goal is to grow the company they own. And in a highly connected world, this growth means to enter the international market and go global. However, not many entrepreneurs are ready to take on this challenge. Preparing your business for global growth can be a daunting yet rewarding task that a business owner should take on.
Here is the step-by-step guide on how to prepare your Las Vegas business to enter the international market:
Step 1: Create an International Business Plan
Sure, your local company can be booming, but it does not give you the assurance that you can duplicate that success in the international market. So the first step that you should do is to craft your international business plan. This business plan should include your goals and assessment of your commitment to attaining those goals.
Step 2: Do International Market Research
Once you have a business plan in hand, the next thing you should do is to study your market and see the regions where your products and services would be well-received. While doing your research, you should also take into consideration the relevant laws and regulations that a particular region has. Check whether the country does not have restrictions on what you are trying to sell.
Make sure not to skip this step. Many U.S. businesses had failed before because they did not research their market. They assumed that the rest of the world does business like the way they do at home.
If you are planning to meet foreign investors, it is crucial to learn about their culture as well. It also helps to learn the basic words in their language because it is going to help win their favor.
Step 3: Assess Your Method of Distribution
When you already have an idea of your international market, then it would be easy for you to choose your means of distributing your product. Would you prefer to set up a foreign subsidiary to distribute your goods? If this idea is still too much for you, you may opt to work with sales representatives and international distributors.
Most U.S. businesses partner with international distributors because it rids entrepreneurs with a chunk of work. When you work with international distributors, you simply have to supply them with your products, and they will be the ones responsible for reselling them to their local market.
To enter the international market also means considering the possibility of having a joint venture with a foreign partner. Joint ventures mean that you also have to do your part of the bargain, but it also allows you to introduce your business to the global market and not just your products.
Step 4: Study Price Points
Apart from distributing your goods, you also have to study how you are going to set your prices for your international market. You have to consider shipping costs, taxes, and even the cultural and economic situation of the foreign market that you would like to sell your goods to.
While studying how to set the prices, you should also look at the available payment options. Make sure to choose the one that will not be too costly for you to encash and the one that allows easy access to the money.
Step 5: Know the Process of Shipping
How you are going to deliver your goods to the international market should be carefully planned out. Make sure to label them accordingly, keeping in mind the regulations of the market. Ask shipping companies the length of time your products will reach the consumers. This way you can inform your consumers so they will know when to expect their goods, and you win on customer experience and encourage brand loyalty.
It is not a necessity for small businesses in the U.S. to enter the international market. But, it is preferred by many astute entrepreneurs, as it helps them protect their business in case of a decline in the local market, mainly if the market is pretty saturated already.