The United Kingdom, the United States of America, and Canada have always been known as trading nations. They are always the top International marketing countries that successfully trade business worldwide. However, doing business in these countries can take time and effort. There are many complexities that your company needs to face, such as readiness, exporting policies, target plans, trade agreements, and even the methods of exporting and social responsibility of the corporations.
This is a Step-by-Step Guide to Internationalizing that compiles proven and tested tips utilized successfully by hundreds to thousands of companies of all sizes and sectors.
Benefits of expanding Internationally!
Let’s cut to the chase regarding the benefits of international expansion. There are several compelling reasons why you need to expand the horizons of your business, such as increased sales, International and domestic competitiveness, higher profits, economies of scale, reduced vulnerability, and gaining new knowledge and experience.
1. Assessing your company’s readiness
When evaluating your company’s preparedness for international efforts, it is important to consider its complete set of resources, including financial and legal support, human resource management, and competitive advantage. This implies that your business needs to be able to manage the increased demand that comes with Internationalizing, secure lines of credit, or have sufficient capital to manufacture the goods or services needed to fill new orders and create goods or services that could be profitable in your intended market.
2. Create an Internationalization plan
An Internationalization plan is different from a business plan because Internationalizing is an aspect of your business’s strategic plan. This step is something you need to work on; it should include the mission and vision of your company, as well as your objectives and purposes. It also encompasses strategic alliances and organizing a trade agreement with your target market, considering both political and economic factors. Lastly, it should address the regulatory and logistic aspects of exporting, trade information, modes of transportation, and cargo insurance.
3. Research and Select your target market
After learning about the Internationalization plan, the next step you need to take is to comprehensively understand your target market through research. To achieve this, you will need to gather information about the political, economic, and cultural factors operating in your target market. This is very important because it provides your company with the opportunity to identify the products and services it needs to offer to potential consumers in the selected area.
4. Find out the benefits of Free Corporate Expansion Agreements
The internationalization environment has become challenging and increasingly complex. That is why you need to seize the opportunity and enjoy the benefits of free trading agreements.
You can check out these hyperlinks to learn more.
Sector-specific initiatives within the WTO:
- WTO Agreement on Trade Facilitation (TFA);
- WTO Agreement on Government Procurement (GPA);
- Trade in Services Agreement (TISA);
- WTO Information Technology Agreement and its recent expansion (ITA);
- WTO Environmental Goods Agreement (EGA), among others.
On a bilateral or regional basis, that is, outside the World Trade Organization:
- Free Trade Agreements (FTAs)
- Foreign Investment Promotion and Protection Agreements (FIPAs)
- Air Transport Agreements (ATAs)
5. Formulate an Internationalization marketing plan
After your company examines the business plan and Internationalization plan, the next step is to formulate the plans. Your Internationalization marketing plans should be built around your research and will answer the questions specifically that tackle your target market.
Questions and topics include the characteristics of your target market, the approach of your competitors and their promotional strategy used, and lastly, how your company adapts to the existing materials, products, and services in the area.
6. Identify delivery methods for your target market
Selecting the right Internationalizing method, or combination of methods, is important to global success. You need to understand the regulations and familiarize your company with the target market’s import regulations, standards of the products, and licensing requirements.
7. Develop a sound financial plan
This key step is one of the most important aspects of Internationalizing your business and expanding your services abroad. Your company must understand the financial demands of expanding globally; you must expect and understand the risks it holds.
Your company must know the timing of cash inflows and outflows. Planning your cash flow is crucial to the success of your expansion because it can help you avoid or lessen such problems as exchange rate fluctuations, exchange controls, transmission delays, political events, and slow collection of accounts receivable.
8. Understand the key legal aspects of international trade
International corporate expansion is far different from local expansion due to the complexities of contractual arrangements, which are more prone to complications.
When you draft your contracts, they must be specific and all-encompassing to avoid misconceptions, disputes, and misunderstandings. For instance, if you Internationalize to a country with different laws and policies, it is natural that their laws will be applied. In this case, you need to find a legal professional specializing in international law to help you sidestep regulatory and legal pitfalls and resolve disputes if necessary.
9. Apply corporate social responsibility practices
Global corporate expansion can improve your company’s reputation, credibility, and profile; however, to improve these areas, your business needs to apply for corporate social responsibility, environmental responsibility, and economic responsibility. Expanding abroad serves as a means of assuming responsibility for social, economic, and environmental practices in addition to expanding your business. An organization’s long-term business success can be influenced by Responsible Business Conduct (RBC) tools and practices, which support the development of sustainable business practices, the management of social risks, and the forging of strong bonds with a variety of stakeholders.
Are you ready to take your company Internationally?
Begin your journey of exporting services and products around the world! Take this quiz to assess the readiness of your company!
Helping Businesses Internationalize
Are you prepared to take your company internationally? Rainmaker is on a mission to promote global company success and economic growth. We empower businesses to seize international opportunities, navigate complex markets, and achieve sustainable growth through our international business ecosystem and international governmental partners.
Our focus on getting businesses into the UK, USA, and Canada allows us to create a synergistic, comprehensive network of opportunities.
Are you looking for a strategic partner? Don’t hesitate to connect with Rainmaker by scheduling a call with us by clicking right here or sending us an email at email@example.com.