3/27/2019 The Complete Guide to International Business Expansion

The Complete Guide to International Busine

Expansion
marco haddaoui Thursda

In the age of globalization and the high competition most markets

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Italy
over the world, expanding your business internationally is an opti
companies think of exploring. While there are many advantages, b
perks to expanding your business to another or several other cou
4 many fail when attempting to for several reasons but mainly beca
Business Growth were not as prepared as they should have been.

3 2
Seo
1 1
Professionals
2
Growth
Because we know how hard it can be to successfully expand to an
country, we decided to put together this complete guide to intern
1 business expansion to show you the step-by-step process to succe
It Services
your business to the international level.

Why Expand to North America?

05/04/2018

Expand my Business : The Steps to...

02/26/2018

How to Successfully Expand your... 1: Advantages

02/11/2018
There are several advantages to expanding your business internat

1: The main reason to expand internationally for many businesses

expanding can allow you to explore new markets, attract new cus
 ultimately increase not only your sales and revenue but also your
awareness to a more global scale. By expanding to another count
extend the sales life of your products or services if you find new m
sell them in, which will also increase your sales.

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3/27/2019 The Complete Guide to International Business Expansion
Furthermore, your company might provide to this new market som
and services that were previously unavailable and that they could
Expanding internationally can therefore allow you to have access
and eager customer base ready to use your product or services.

2: Another advantage to expand internationally is that by doing so

have the opportunity to reduce your dependence on the market y
already established in. You currently might be in a highly competi
environment with many other players in this specific country and
expanding to another country like the United States or Canada fo
you will be able to take advantage of this market as well and incre
revenue without having to depend too much on a specific market

3: Another important advantage to international business expans

fact that by settling into another country, you can have the ability
country’s technology, expertise and know-how in the field. Differe
very generally do things differently in the workplace, and the tech
used in an industry can very often differ from one country to the
Expanding to another country, especially if you want to expand in
America, can therefore give you the possibility to use better techn
learn better work processes which will ultimately improve your bu
process as well as your sales.

4: The opportunity to have access to and work with more talented

that are expert in your field is another big advantage of expanding
Many advantages come with working with different people who h
skills and expertise you will need in order to understand how thin
that new country you just expanded to.

5: A big reason as to why many people expand internationally is b

would like to get ahead of their competitors. By expanding where
competitors has never been, you will be able to benefit from the “
advantage which will give you the opportunity to grow a very stro
customer base as well as brand awareness.

2: Disadvantages
Despite all the advantages that comes with expanding your comp
internationally, you will need to remember that there are also a lo
disadvantages you will seriously need to take into account if you w
have a successful expansion process. Here is a list of some of the
disadvantages that come with international business expansion.

1: An important disadvantage you will need to take into account is

cultural barrier you might encounter once you expand your busin
new country. It is going to be very important for you to research t
you are expanding into in order to properly understand the cultur
differences you might have and what you can do in order to tailor
product or service to their specific habits and culture. Very often,
expand their businesses into different countries and then realize
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product is not a good fit for this specific country, which result in th
ultimately losing money.
In an article for Business News Daily, Saige Driver said "Remain co
branding, but adapt to the environment." which is a simple yet ve
important advice, that many business owners tend to overlook. 
Market research prior to expanding is therefore very important if
avoid having cultural differences as a disadvantage and somethin
ultimately harm the success of your business expansion.

2: While many countries have free trade agreements allowing bus

from other countries to sell their products, it might be a bit more
to expand into other countries. You might have to pay additional t
other fees that will give you the possibility to sell your products in
country. In order for these regulatory issues to not be a problem f
will need to do your research once again and decide whether or n
expanding in this specific country will be worth the extra fees and
regulations.

3:  Currency exchange issues is another issue you might encounte

expanding internationally. The constant fluctuation of exchange r
one currency to the next can help you increase your sales but it co
lead to a decrease as well. Remember that your currency can harm
ability to trade. Paying attention to the fluctuations often will the
necessary if you want to avoid having currency exchange as an im
disadvantage and issue.

4: Similarly to taking into account the cultural differences, anothe

disadvantage you might encounter is the need for your products t
customized to the specific country you want to expand to.

3: Questions to ask before starting:

Once you have determined what are the advantages and disadvan
international business expansion and decided whether or not it w
you will need to ask yourself some questions regarding whether o
should keep pursuing it and expand to the country of your choice
or not said country is generally a good place to expand to does no
mean that your products and services are the best fit for this coun
they are going to be successful there. In order to ensure that this
will be the most beneficial for you, here are some questions you s
about asking yourself.

Is expanding to this new country worth the time, money and e

Can my product sell well in the new country?
Do I have a solid business plan?
Is your target market familiar with your product/service?
Are you aware of the cultural differences of the country you w
expand to?
Are you financially ready to expand overseas?
Are you aware of any potential regulatory issues?
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Do you have contacts to guide you through the process once y
your targeted country?

Review these questions carefully and if you are able to answer “Ye
these, it is a good indication that you are ready to move to the nex
not, take some time to think about and research what you think y
need more time on. It’s better to take your time and be prepared
and not be as ready as you should have been.

If you have any other questions you would like to ask as you are p
your business expansion, do not hesitate to contact ORSIM Consu

4: Business Expansion Strategy:

Establishing a strong business expansion strategy is going to be th

important part of this entire process, because this is what will rea
to success. While the business expansion strategy is going to be d
from one business to the next. there are generally different steps
to be taken in order to guarantee the success of your business exp

1: Do Your Research First:

When establishing an international business expansion strategy, t

thing that will be important for you is to do what experts call a “de
due diligence, which is going to allow you to determine with certa
is going to take for you to expand to another country but also the
impact it will have on your business. Here are what you can do to
dive” due diligence:
Conduct a market segmentation analysis. This will help you figure
whether or not your product or service has a chance to be success
new market you are going to expand to.
Figure out who are gonna be your direct but also indirect competi
new market and conduct a gap analysis against their products. Th
you to see how these competitors provide their services to their c
whether or not there is a gap between the demand and what is cu
being offered. That way, you will be able to fill the gap and offer a
that rids your customers of all of their pains
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that rids your customers of all of their pains.
Conduct a SWOT analysis. This will help you determine what are t
and weaknesses of your products, but also what kind of opportun
threats there are in the market.

In an article for Entrepreneur.com, Eric Samson recommends: "Be

invest big dollars into an overseas office, you should first estimate
demand there may be for your product or service among your new
populations. Find third-party research, scan local newspapers and
professional networking groups to gather information about the m
opportunity. Of course, even with high sales potential, you must m
you have the "right" product and the "right" brand that local custo
be drawn to." This will give you more awareness in terms of where
product stand in relation to its market, which will allow you to be
prepared.

2: Establish A Team:

Many companies who expand internationally do by often rapidly b

local team without really taking the time and doing the research n
and while the executives remain at the parent company. This is no
way to go about things because it is not only very risky, it is also ti
consuming. Proven senior executives will allow your company to s
running smoothly as soon as you open your doors while the comp
the time to looking for the best and most appropriate team.

Here are a few key steps to establishing a strong local team succe
Use the expertise and skills of your senior interim executives initi
outsource interim leadership to executive leadership organization
Establish a financial infrastructure, which can be done if you outs
local service providers.
Then start to look for the right and permanent local management

3: Get Your Product Ready:

In order to ensure that you will get a share of the market you plan
into, you will need to use what you found through your gap analy
determine what you can change in your product or service to mak
different and more attractive that products or services from comp
high-impact product differentiation is what you will want to achie
it is what will set you apart from the competitors in the eyes of cu
is therefore what will make you unique and attractive on the mar
Reviewing government but also industry-specific regulations will b
important, since it will determine which compliance and certificat
need to be obtained, if any need to be obtained at all.
Localization of a product is a process consisting of customizing a p
specific audience and geographical location, by translating a name
changing the packaging for instance. You will need to determine w
not your product needs any localization and if so, do your researc
to see which changes you can make to make this product more at
this specific audience.
It will also be very important for you to initiate a patent and trade
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It will also be very important for you to initiate a patent and trade
review, in order to protect your idea from local competitors.
Think about the logistics when it will be time to sell your product.
need to figure out how your product will be sold, where it will be s
how it will get to them.

4: Get Your Organization Ready:

The cultural differences from your country to the one you plan on
to will need to be taken into account, whether it is language, regu
customs. You might need to change some of your policies or even
in order to make sure that your company’s plan is still being follow
the policies fit the new country you are in.
Analyze and evaluate the organization and its structure to figure o
needed in order for you to successfully implement your strategy.
Get familiar with the local policies and requirements and develop
procedures that comply with them, while still fitting in with your c
plans.
Implement competitive benefits programs, which will allow you to
most skilled and qualified employees in the country you are expan
Implement a local IT infrastructure that works well with and is com
your domestic infrastructure.

5: Go-to Market Strategy:

In order to effectively market your product, you will need to have

strategy that also addresses sales strategy, delivery, the value pro
pricing etc. which will all constitute of market differentiators.

1: Strong Value Proposition:

In order for your business to be successful in that new market, yo
to figure out what sets your product or service apart from the com
and how it is going to provide to those in said market something t
seen or experienced before. Once you have figured that out, find
can put what makes your product unique into words and commun
with other potential clients.

Figure out what makes you unique in a sea of competitors and foc
Companies such as Tim Horton’s in Canada for instance are know
low price wherehas others such as Starbucks rely on other factors
in the same market.

2: Focus on the customers:

The purpose of any given business in the eyes of a customer is to
issue, commonly referred to as “customer pain” and if you want yo
business to stand out and be a successful expansion, it will be imp
you to figure out who is going to be your ideal customer. Conduct
research to really understand to which demographic your product
could be of use to and if said demographic is even large enough fo
worth it. If not, adjust accordingly to make sure your product or se
perfect fit with the needs of your potentially ideal customer.

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3: Key performance indicators:

In order to properly track the growth of your business and to hand
in the most efficient way, you will need to identify the different ke
affecting the growth of your company. Once you have figured that
will be able to allocate time and money accordingly to these differ
indicators.

4: Revenue streams:
Ask yourself what your current revenue streams are but also wha
revenue streams you could add in order to increase your revenue

5: Competition:
Regardless of the industry you are in and the kind of product or se
are going to provide, you need to know that most times, your com
most likely do something better than you do. Look at what they d
why. This could give you some inspiration regarding which way to
business but could also allow you to see what your business can o
currently missing from the market.

6: Pricing:
You will need to evaluate the pricing model of your business and d
whether or not it fits with the country you plan on expanding to.

6: Get Legally Ready:

In order to ensure that you expand to another country the best an

easefull way possible, you will need to implement strong legal pro
in case of any potential legal troubles. Additionally, government a
very often ask strict legal documentation before allowing you to e
their country. While this might require a important financial capit
also allow you to minimize the risks later on, risks that sometimes
being very expensive.

Implement localized commercial agreements

Review the regulations specific to your industry in order to make s
you have all the certifications and compliance you might need.
Don’t forget about the general corporate services such as immigra
shipping, customs etc.
Remember to always maintain corporate records and governance

7: Get Your Finances Ready:

To make sure that your business is properly adhering to the count

corporate policies, you will need to get the necessary tax and fina
infrastructures ready.
Think about outsourcing things such as accounting, tax, payro
Implement a risk management plan
Implement a cash repatriation plan
Establish a relationship with local banks
Report sales and VAT taxes
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Report sales and VAT taxes

8: Establish relationships with local businesses:

In order to get a strong competitive advantage, it will be importan

create and foster an ecosystem of complementary products or se
fostering these relationships you will be able to support the scalin
company while minimizing the financial risk.
Negotiate to get alliance, partner or distributorship programs
Build an internal alliance team which will allow you to manage bu
relationships
Develop an ecosystem strategy and business model

By taking into account all of these different things, you will be abl
up with a solid and efficient business expansion strategy which w
your business to successfully expand to the country of your choic

5: Business Expansion Plan:

Because each country has differences in terms of economy, cultur
conditions and government legislations, your business expansion
need to be specifically tailored to the context of the country you p
expanding to. This business expansion plan will need to be able to
growth of the new business location while remaining integrated w
general corporate strategy and objectives.

Much like the business expansion strategy, your business expansi

need to be specifically tailored in order for it to be efficient, a bus
expansion plan is therefore different from one company to the ne
However, there are different components to a business expansion
you will need to include if you want to make sure it is going to be
can be. Here are 10 important components that will need to be in
your business expansion plan:

1: Executive Summary:

Your executive summary will outline your entire business plan fro
beginning to end, and will therefore serve as a guideline moving f
order to make sure you have the most efficient executive summar
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order to make sure you have the most efficient executive summar
simple and straightforward will be necessary.

2: Company Description:

The company description is where you will describe your company

does but also how your product stands out from the competition
market.

3: Product and Service Description:

This is where you go into further details about your products. Des
they do, but also what kind of customer pains they get rid of.

4: Marketing Analysis:

This section is to outline information about the market you are go

as well as your current place in said market and the technology as
with business expansion.

5: Marketing Strategy:

This section will allow you to determine which marketing strategie

you to be successful. You will need to include advertising, new pro
innovations, customer experience, ideas for marketing success an
technology.

6: Organization and management:

Thinking about the organization of your company and the way it n

managed needs to be included in your business expansion plan. It
important for you to have the best structure possible for your com
because it will allow the company to perform to its fullest potenti
Remember that a structured and organized company has many b
included easier management and a more motivated workforce, w
 ultimately increase the performance and revenues of the compan

7: Day-to-day operations:

Analyse your daily operations and look at how they work. Pay atte
what works and how you will be able to implement it once you ex
also what works less and how you can improve it once you get to y
country of business.

8: Financial History:

You will need to find out the successful campaigns that resulted in
wanting to expand. Give some details regarding these campaigns
they transformed your business. Do not forget to include the budg
increases and cuts and how they have affected your ROI.
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9: Financial plan and projections:

There are several things that need to be included in your financial

as:
12-month profit and loss projection
cash flow projection
cost analysis
3 year outline on how to retain productivity
Estimated balance sheet of expenditures

10: Appendix

The appendix is often an optional section in which additional info

included. In the case of a business expansion, you can include an
your plan to add information that build your case, such as:

Resumes (your own and maybe one of a co-founder if you hav

Permits
Leases
Contracts
Brochures
Blueprints
Industry studies (cited)
Letters of support

6: Mistakes to avoid:
Once you put your business expansion plan and strategies togeth
are still a few things you will have to go over in order to make sure
are going to have a successful business expansion. Remember tha
to be over prepared than underprepared, especially when it come
undergoing such an important project with such stakes for your c

Here is a list of some mistakes to avoid when expanding your bus

new country:

1: Your employees:
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Very often, companies who expand want to hire younger and less
experienced employees because of less expensive cost. However,
mistake you should try your hardest to avoid. We understand that
your budget can be a little bit limited, especially when undergoing
as big and as costly as expanding your business to another countr
you need to understand that the skills, expertise and experience o
employees is not something you want to be cheap on. Having the
employees is one of the most important thing you can spend your
since it directly affects the performance and ultimately the revenu
company. While it might cost you a bit more, hiring the best peop
an investment that is going to pay off in the long term.  

2: Not designating a remote decision maker:

It is important for you to leave some independence and autonom

local team while still being closely involved with them and making
they are still working towards the company’s goals and objectives
In order for you to let your local team have autonomy so that they
on their own, it is going to be primordial to have a solid managem
on which you can count on and trust to do the job properly. Hire s
who you think is going to do the job well and when you do, make
person understands when to make decisions and when to consult
the upper management. Having one decision maker will streamlin
process and will allow for a better-ran company, which increases t
performance.

3: Not visiting enough:

Remember that as the boss, you have an influence over your emp
the way you do things. Be the right kind of leader, especially when
the early stages of your expansion. While we have established tha
important for your local team to have some sort of autonomy, the
importance of still being involved and present remains. Even whe
not in said country, communication remains very important. You
aware of what your local team does, how they are currently doing
whether or not they are still on the right path towards achieving t
company’s goal and even scheduling weekly phone or video chats
to do that. You should also use these calls as an opportunity to bu
strengthen the relationship you have with your local team becaus
remember that the better the relationship, the more motivated th
going to be.

When visiting, think about offering advice and listening to concern

team may have instead of only criticizing and being negative.  Use
to also support them but also learn from them and their experien
often local teams have more insight regarding the market they ar
have a better understanding of the environment and the custome
be scared to listen to and even ask for suggestions, your employe
have an idea that will improve the company’s operations.

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4: Going abroad for the wrong reasons:

Very often, companies decide to expand due to the lack of growth

domestic market. While international business expansion is certa
way to increase your revenue,  you need to understand that expa
another country is more of a long-term investment rather than a
to get money. It generally takes years for you to gain profit from a
need to be aware of that before even starting your expansion pro
decide whether or not it was worth it.
Think about whether or not you can be patient and are willing to g
long-term project and if not, you might consider giving up on expa

5: Poor preparation:

When expanding, the best thing you can do is to prepare yourself

we mentioned several times in this guide, it is better to take your
certain to be prepared than rushing and not being as prepared as
have been.

Poor preparation also involves not having the right kind of help. In
would strongly advise you to work with consultants specialized in
globally to properly prepare yourself. In the article '4 Tips for Expa
Business Globally', Nathan Resnick mentions  Pura Vida Concepts
Singapore-based consultancy focused on helping small businesses
the world expand into all parts of Asia. In order for you to be as pr
possible, it would be advised to find consultants specialized in exp
the country you want to succeed in and listen to their advice on w
order to do it successfully. 

In order to make sure that your business expansion is going to be

you will need to prepare yourself as soon as possible. Knowing ea
you are going to expand means that you have more time to think
strategies, do the research and do the other groundwork necessa
determine the future success of said expansion.

7: Helpful tools:
Because expanding your business internationally is a very large p
requires for a lot of things to be ready in advance, you will most li
some help to carry you through the entire process. Whether it is r
financial, legal or any other kind of matter, this section is going to
you with some tools that will help you during your international b
expansion process:

If you are looking for advice before regarding international trade,

look into contacting the following:

Export Counselors
International Trade consultants
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te at o a ade co su ta ts
Trade associations
Experience exporters

Are you looking to expand your business specifically to North Ame

government resources might provide you with additional and valu
information regarding how to successfully expand to North Ameri

U.S Small Business Administration of International Trade:  Provide

smaller international businesses with their two main programs: fi
assistance and business development assistance. By going directly
you will be able to gain some valuable insight regarding how to pr
expand to the United States directly from a government channel,
significantly increase your chances at expanding successfully.
U.S International Trade Administration:  This administration office
increase the jobs in the United States by increasing the number of
expanding in and outside of the country. They also provide inform
regarding different markets, business contacts but also trade dea
The U.S Government Export Portal: It can provide you with online
resources and most importantly one-on-one assistance regarding
international business. The training and counseling they provide c
you a lot of insight regarding how to successfully expand your bus

Intellectual Property:

When expanding, another area where people usually need help is

comes to intellectual property protection. Indeed, intellectual pro
can be somewhat of a tricky and complicated area for some, espe
international scale given that the law differs from one country to

The website www.stopfakes.gov can help you find articles regardi

Intellectual Property rights in different countries, from China to R

Non-Governmental Resources:

The Federation of International Trade Associations can provide yo

information regarding trade leads, market research and more.
The network WorldBid www.worldbid.com is a network of interna
marketplaces, that can give you more information about trade lea
as business contacts.
Of course, using search engines such as Google, Yahoo or Bing can
lot of information and helpful tools that can help you to successfu
internationally.

At Orsim Consulting, we created what we call a “Growth Calculato

to allow our clients to gain more insight and information specific t
of enterprise you have, what specific goals you have for it and wh
you will need to take into account in order to accomplish your goa

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8: Do’s and Don’ts:

Do’s:

Recognize the opportunities for growth when you expand

internationally.
Do you research regarding license, franchising expansion and
else you might need.
Analyze your competitors.
Develop a sound and complete international marketing plan.
Dedicate personnel, a budget, and appropriate procedures.
Create a strong agent or distributor's agreement.
Learn about and understand the importance of intellectual pr
rights.
Do your research regarding marketing and advertising require
Be ready to conform to the unique needs of each geographica
Take advantage of free online resources to learn more about t
process.

Don’ts:

Minimize the challenges of international business expansion

getting properly ready beforehand.
Overlook international trade as an asset for hollow corporatio
Disregard cultural differences.
Start the process without any counselling.
Blindly chase orders from around the world.
Forget about researching the risks and threats of expanding
internationally.
Ignore the importance of legal advice.
Fail to understand the importance of export licensing require
Forget to understand the differences between an agent and a
distributor.
Ignore the importance of foreign market adaptation.

Congratulations! You made it to the end of the complete guide to

international business expansion. We’d say that the biggest takea
this should be that you should never forget that while expand you
to another country might be great for business, it will only work if
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more than ready and prepared. Taking the time and doing each st
carefully will therefore be necessary if you want for your expansio
to come true.

While this guide is a general guide that could be applied to any bu

remember that each expansion is going to be different depending
of company and the products or services offered. For a more cust
tailored help and to ensure that your business expansion plan and
 specifically fits your business, do not hesitate to check out ORSIM
Consulting’s Growth Calculator or just contact us directly. So

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