When it comes to the subject of expansion of your business across the globe, there are risks even for mature and large companies. It is essential for every business owner to navigate different cultures, regulations of the government, and the needs of the market efficiently. This task is very challenging, even if you feel that the time for operating internationally is ideal for your business.
Businesses have to consider issues pertaining to the supply chain due to the pandemic, geopolitical upheaval, and other challenges when it comes to operating in any unpredictable environment.
Kavan Choksi- the right strategy needs to be in place
Kavan Choksi is a highly successful business management, wealth, and investment consultant who works strategically with organizations specializing in retail, fast-moving consumer products, and the luxury markets. He has invaluable knowledge when it comes to helping his clients revitalize their business profits. Thanks to his profound expertise in finance and economics, he has an intense passion for investing and enjoys guiding others on how they can make the most of their money via investments too.
According to him, you need to know whether it is the right time for you to expand your business borders and foray into the international market. You must take time to navigate the issues that have been mentioned above before you consider expanding your business borders. He suggests that you must take certain factors into consideration before you proceed, and some of them have been discussed below-
Decide when it is the right time for your business to expand
Before you consider global expansion, you should closely examine two crucial aspects- whether your business has attained a saturation point in the home market and whether your company has a “ unique value proposition” that you can take with you to a new country.
If your business has reached a peak in its growth in the home market, its future prospects for further expansion are flat. In this case, venturing out to international shores is the best option open to you. However, before you take this step, ensure that your business has matured and enjoys good profits. It would help if you remembered that when you expand overseas, there are several significant costs involved, and it will take some time before your business shows earnings in the new terrain.
Besides the above, you should have sufficient capital and a strong balance sheet so that you can absorb the early losses that you are most likely to incur when you enter a new global market.
Business expert Kavan Choksi further adds when it comes to your USP, you should ask yourself whether you are placed in the top five in the home market. Are you doing something challenging to replicate? Will your service or product fulfill a specific need in the international market you are ready to foray into?
Moreover, you need to consider whether there are competitors that are ready to replicate the business model that you have. It would help if you also placed consideration on brand equity that you are prepared to take across to a foreign market. All of the above factors need to be considered carefully before you gain credibility and trust in the new market, so ensure you pay attention to them with time!
