If you are currently running or thinking about running a small business, you may be wondering how far you can actually take the business. Can you expand beyond your local community? With the wonders of online business these days, the sky really is almost the limit. Can you go global though? Is that possible for a small business? The answer is a resounding yes! It will take some hard work and a little patience however. It will not and cannot happen overnight. When it comes to the global community, there are many considerations. These are just a few.
Expanding Globally Requires Discipline
Do not try to expand globally just for the sake of doing so. Of course, the end goal is to increase profits, but simply expanding out into every market is not the way to do that. With each opportunity, take the time to consider if it is really going to benefit the business, and in the end profit margin, in a way that will be worth it.
Some things to look at include:
- Is there a large enough customer base in that market to make the additional cost of selling there worth it?
- Is there truly a need in that market, or is the reason there is no one selling a product like yours there because there is no need?
- Is now really the time to expand to this market, or does some ground work need to be done first?
While the answers to these questions may indicate that indeed the market in question is ready for you, not asking these questions and jumping in blindly could cause you to cost yourself more money in the end. Taking the time to distinguish between those markets that will actually be profitable and those that would not be will pay off in the end.
Break the Language Barrier
Remember that English is not the primary language of the world. If you are going to expand globally, you are going to need people who can speak the language of each market you enter. Hire people to translate, or better yet, hire people to do the work that know the language. This is a win-win for you and your business.
Be Culturally Sensitive
Study the culture so that you know what is expected, what is considered taboo, and how customers expect to be treated. Making a cultural mistake can cost you big bucks, and it may be difficult to recover.
Use Local Experts
The best way to deal with the language barrier and cultural differences is to hire local experts to run the business in the global markets. They will know what they are doing both business wise and market wise. This will save you not only the worry of whether or not you are doing something culturally that could cause problems, but give you peace of mind knowing that there is someone local at the helm that cares about your business.
When it comes times to expand, Biz2Credit can help you get the financing you need. Our extensive network of lenders offers various types of small business loans to a broad range of business owners. Visit Biz2Credit.com to find out more and get started.