If you are an entrepreneur trying to develop your company abroad, expanding into numerous nations may have a significant influence on your bottom line and brand, allowing you to grow more quickly. Scaling your business outside national borders, on the other hand, is a bumpy road full of obstacles.
In my previous capacity as CEO of a food diagnostics firm, I oversaw its rise from a single nation to doing business in over a hundred. In just a few years, our company had grown to become a global player and influencer in food safety diagnostics, with 65 percent of our revenue coming from outside the United States. We also had a global market share of 38 percent.
We were successful because we gathered data through market research and used it to guide our global approach. Here are a few crucial tactics for establishing international expansion.
The first step is to do market research that is relevant to your situation, effectively measure the regional market for your sector and product; you may need to employ a research agency. Make sure to use research that delves into the practical details of your vertical market and distinguishes between the numerous regional marketplaces. Frost & Sullivan, Nielsen, Statista, and Gartner are some of the research firms I suggest.
The actual market size of certain geographic regions, competitors, market dynamics, predicted growth rates, and estimated revenue — generally over a 10-year period — may all be detailed by research organizations. When it comes to preparing a worldwide rollout, this information is crucial.
Market research papers may found simply online as abstracts or the whole report for a price. Research organizations normally take 90-120 days or more to generate a full report if you want a unique study. If you work in a specialty, this knowledge is priceless, and I recommend employing an expert to get the information you want. Depending on the sector and market research firm, a customized market research study might cost anywhere from $20,000 to $50,000.
For example, the firm I managed hired a market researcher to help us figure out which overseas markets to focus on, as well as existing and prospective product demand for our current and future product pipeline. In addition, we revised our product pipeline in response to demand in important overseas markets.
You must plan based on ROI projections in order to accomplish the worldwide expansion. Determine which markets are the most feasible and large for what you offer in the initial phase of global expansion. Assess how simple or difficult it will be to enter a certain market, and if the size of the market warrants the work required to establish a strong foothold.