When I spoke with one of the biggest banks in Denmark last week, they clearly confirmed, that their most successful business costumers are those companies, that are setting on export. Despite of C-19 and the world economic situation.
This is music in my ears, as I am convinced, that there are even more companies, that could successfully internationalize. If you choose for an export strategy (the simplest form of internationalization), then you definitely take advantage of international opportunities, among others:
- You win new customers.
- And make yourself more independent from your home market.
- Local responsiveness is low (= degree to customize your products / services) .
- And start-up costs are relatively low, too.
Nevertheless, I sometimes notice a certain uncertainty at companies due to lack of insight in new markets and the investment, that comes with it.
However, lack of insight can be solved and as I use to say: to grow in your home market and win market share, is not only an investment, too, but can be actually more expensive.
Selling your product or service internationally is a fantastic opportunity, but doing so with confidence and understanding will take your business definitely to the next level. If you are seriously considering to conquer new markets, then I recommend you to screen your business on the following parameters:
Check your export potential
Which market(s) do you want to target? The more markets, the higher the risk.
If you have already demonstrated efficient and good relations with your current customers, then it is crucial to review your capacity to handle the extra demand, that comes with exporting.
Research & Development of an export plan
Look at who your customers are already; will you find similar customers in your target market(s)?
Make a customer and competitor analysis incl. legal advice and cultural difference in trading. Check, too, whether you will need to modify your product / services to foreign customers. Make an action plan for each market, that you target.
Go-To-Market strategy
Develop your intercultural awareness and find a proposition appropriate to your target audience. For companies in B2C, it could be easier to enter a new market by partnering with traders and by that choose for a B2B model for exporting your products and services. This could minimize your marketing efforts and linguistic challenges, too.
Prepare to manage finance, payment and risk
Prepare documentation as e.g. certificates of origin and learn how to manage foreign financial transactions and research trade taxation – adjust your product / service pricing to consider these. Prepare to protect your intellectual property, too.
Choose your distribution, shipping and delivery methods
Choose the shipping method best for your product.