Business expansion is the dream of almost every modern entrepreneur, and even though some business owners are quite content with the current size of their company, there is no denying that the prospect of expanding your business is an appealing one. When you expand your operation, you effectively open numerous lucrative doors and opportunities for higher brand recognition, improved revenue, and much more, but there are also certain risks that you have to be aware of.
To expand a business also means to venture into uncharted territory, so to speak, a territory where numerous perils might lie in wait (such as the local competitors), so it’s imperative that you make all of the necessary preparations to ensure the success of your growth strategy. Today, let’s take a look at some smart tips that will help you reach your goals of national and even international expansion.
Research and careful contemplation first
Ask any experienced business leader who has been where you are now and they will tell you that research is one of the primary drives of success. And unsurprisingly so, as you can’t expect to execute your expansion plan if you don’t have the necessary insights to guide your every decision. Needless to say, you should try to minimize errors as much as possible if you are to solidify your position in the new market. Yet, many eager leaders will try to expand before they’re truly ready.
This inevitably leads to financial setbacks, so it’s important that you research the new market thoroughly before making any moves. It’s also important that you research your new competitors, as these insights will help you strengthen your own USP, but also discover hidden opportunities to deliver a better service to their customers – thus bringing them over to your side.
Follow the letter of the law
It should go without saying that you can’t expect to expand safely into a foreign market if you’re not following the law to the letter. Countries all over the world are enforcing strict franchising and expansion laws for foreign businesses in order to safeguard their consumers as well as their economy, so it’s imperative that you advise with your lawyers, but also acquire a strategic local partner. For example, real estate agencies that want to acquire land in foreign countries need to go through cumbersome legal processes, which requires the help of local agencies.
Take the example of the increasingly-popular Indonesian market. Real estate investors looking into Indonesia will seek professional assistance from firms such as Invest Islands that specialize in legal and procedural help and guidance for property acquisition, in order to make expansion as seamless as possible. So, no matter where you plan to expand your business, be sure to research the local laws and regulations, and find strategic partners that will help you keep the law on your side.
Optimize your entire brand identity
Now, when we say that you should optimize your brand’s identity, that doesn’t mean that you need to make any drastic changes to your visuals or brand personality, but it does mean that you should spruce up your brand according to the reports from your market analysis. Why? Because you might have an amazing brand that your local consumers know and love, but that doesn’t mean that you will evoke the same emotional response in the new market.
There are many socio-economic and cultural aspects that are at play hare, trends that shape the hearts and minds of local consumers, and you can bet that the local competitors know exactly how to capitalize on those trends. If you are to stand a chance of making a name for your company in the new market, you need to tailor your content, messages, brand values, and maybe parts of your visual identity in order to appeal to the local culture and way of life.
Deliver a better experience for consumers
The local consumers have their local brands that they know, support, and even love. So how are you to compete with that? For one, you need to make a strong first impression. It’s imperative that you deliver a better brand experience for your new customers, that you optimize your site and social media for the local market (translate them into the local language as well), and to capitalize on the weaknesses of your competitors.
Keep in mind that there is always a pain-point or two that your new competitors haven’t resolved for their customers, and that’s your chance. Aside from that, don’t forget to consistently innovate your products and services. People want new and exciting things, so if you don’t innovate, you will slowly start to lose their interest.
If you are considering expansion, be sure to take your time to develop a strong strategy in order to minimize risk and improve your chances of long-term success. Use these tips to shape this strategy and pave the road to a thriving future in the new market.
Guest Author, Raul Harman, s a B.Sc. in Innovative entrepreneurship and has a lot to say about innovations in all aspects of digital technology and online marketing. While he’s not enjoying travel, football and great food, you can find him on Technivorz.com.