Expanding To Establish A Foothold Abroad As An Entrepreneur

The days of the humble and shy small business are over, as now many entrepreneurs want to take risks and be daring enough to believe expansion is the only way forward.
Many small and medium size businesses think that internationally expanding is the future, regardless of size as in order to stay competitive, emerging economies must be tapped into. Nonetheless, entrepreneurs may be gutsy, but they’re not invincible, and careless planning can lead to tragedy.
Taking a small business out into the wild, where the big dogs roam is a complex task which needs a dynamic thought approach and a deep understanding of the targeted markets. On top of this, as an entrepreneur, you must never forget where you came from and the challenge it was to start up a business in the first place. Therefore, both the home and abroad branches of the business must work in tandem to achieve success.
 
Getting out the magnifying glass
Before you can go global, it’s imperative you understand why it is you’re choosing now to expand and that it’s not for some fruitless errand. The importance of studying the market you wish to enter is something that cannot be overstated. Prepare a segmentation analysis of the market and estimate with the research you conjure, how your product would fare in the local setting. Is there a gap you can exploit? Directly compare your service or product to the local companies who are in the same industry and highlight what is, and isn’t similar. Perform the most basic of tests, the SWOT analysis. This will bring to light the competition you face and the threats you’ll have to manage and preferably, weigh up to make a balanced decision before setting the wheels in motion. Consider the time it will take to get the business up and running and the target sales number you wish to achieve in the first year.
Your most valuable asset
Many startups and entrepreneurs are tempted stave off from hire local employees immediately upon setting foot abroad, but nothing can buy experience. Don’t make the mistake of thinking you don’t need new employees to be the foundations of the expanded business. Nobody knows the local market better than the locals, so before you expand and start renting an office space, go talent fishing in the area. The most valuable asset any business has is the individual employee, who brings a fresh perspective and hard work into the business. Granted your budget may be tight, but this is one area you don’t want to cut; hiring skilled employees is a long-term investment.
Managing two fronts
Companies must give local-market teams the ability to execute decisions and manage their progress to some extent. However because your new operation is abroad, your founding is back home and should be referred to, and behave like your headquarters. Although you will continue to be involved by micromanaging the branch you set up abroad, realistically, you’re relying on people who you don’t regularly see who hear from. This is why it’s crucial to have good professional and personal contact systems in place. You can remotely check and track your employees attendance, by using a centralized system that keeps track of what’s going on abroad. Such online network apparatus gives you information who late or doesn’t show up to work. This kind of technology, allows you to monitor productivity, plan ahead in case of a missing link, which inevitably leads to money saving solutions. With prior knowledge of workforce strength before the day is even begun, your business abroad and the HQ can work together to decrease downtime by reacting fluidly to plug the gap and share the now extra workload.
 
Visit regularly
A boss who turns up in person to see how work is getting on is a boss that employees appreciate. By meeting staff in person, giving words of encouragement, putting your weight behind them, striving to meet goals and being involved in the day-to-day management, you’re seen as ‘part of the crew part of the ship.’ Vitally important, especially in the early stages, is the need for you to be a figure of authority, leadership, and reassurance to new employees who need guidance. Your veterans will also appreciate that you haven’t become a ‘boardroom boss, ’ and you actually get in the trenches with them to fight. Communication is key, by getting a full report of what’s been going on while you have been away, you walk a mile in their shoes by experiencing the project from a local standpoint. When you visit, establish a rapport with the manufacturers, suppliers, distributors and storage companies, your abroad business has built a relationship with. Learn to enjoy logical criticism, employees want a firm hand to direct them and give them a chance to voice their concerns too. Listen with patience and understand what the local team has to say. Absorb their firsthand knowledge and use it to improve the business.