With very few
exceptions, no matter what business you are in, there is a
market for what you have to offer overseas. You never thought
that your product could make it in Belgium, or Great Britain,
Germany or the Ukraine? It might be time for you to think again
– because virtually everything your American customers
are interested in buying from you, customers overseas are going
to be interested in buying from you as well. Each year the world
moves closer to a truly global economy. You only need to read
reports of McDonalds’ success in Mainland China or Walmart’s
wins in India to understand that while cultures and traditions
might differ, what people want and are willing to pay for
remains virtually the same across the globe.
But it isn’t
just the multi-national giants with billions of dollars to spend
on market research that are successfully expanding their
operations overseas. Every year, more and more small and midsize
companies are finding amazing profits can be made outside of the
United States. These are companies with the vision to see beyond
their own borders, and the willingness to devote the energy and
work necessary to make their expansion pay off. In most cases,
they are also companies that understand that doing business
overseas is not the same as doing business in Iowa or Oregon.
I can’t tell
you the number of American businesses I have seen flounder and
fail in their overseas expansions simply because they didn’t
adequately understand and prepare for what they were getting
into. In some cases, these failures were due to not
understanding their markets or their partners’ needs; while in
other cases something as simple as an inability to communicate
effectively on all levels was the cause. In virtually all
of these cases, failure could have been turned into success if
they had only hired a qualified consultant to help them with
their expansion.
Here are five
fairly common problems that a qualified consultant can help you
avoid when you are expanding your business overseas.
TALKING TO YOUR PARTNERS –
I am continually amazed by how many Americans both in and out of the
business world assume that everyone in business overseas
speaks English. While it is true that the majority of the world
leads the United States in multi-lingual citizens, the simple
fact of the matter is that not everyone you are going to need to
deal with in your expansion is going to understand everything
you say. Whether it is on the production end, or IT, sales or
service, in order to convey both generalities and those all
important nuances that are taken for granted between English
speakers you will need reliable translators working for you – at
all levels. A qualified consultant will be able to help you
build a professional translation team that not only understands
the language, but is also familiar with the particular nuances
of your specific business.
UNDERSTANDING YOUR MARKET
– One of the main misconceptions I run into with my clients –
and see in the way other companies position their expansions –
can be summed up in four little words: They’re Just Like Us.
Regardless of where you are expanding your business to – and who
“they” are – the odds are very good that they are not
just like you! As a result of the myriad of differences that
exist between cultures, histories and basic sociological trends
within the different nations in the world market,
different
things are going to be more or less important to your customers
based on who and where they are. As an example – for the
vast majority of your customers in the United States, price
is the overriding factor when it comes to purchasing one product
over another. This, however, is not the case in Brazil,
or The Netherlands, or Singapore where quality is the
touchstone upon which a sale is made or lost. Introducing a
product in these – and dozens of other global markets – that
sacrifices quality for price is an enterprise doomed to fail. A
qualified consult is critical to helping you identify and
service the specific needs of your international target markets.
GETTING YOUR MACHINES TO TALK
– The Information Technology explosion of the last 20
years is, in a very real sense, perhaps the principle reason why
small and midsize businesses are now able to expand their
operations overseas successfully. However, setting up a common
operating platform with your overseas partners is not the same
as setting up a shared network with your branch office in
Milwaukee. If it is not done right the first time a flawed
overseas network can have many costly – and potentially
disastrous – consequences. As an example, we have found that the
German language tests the limits of many software programs
commonly used by U.S. based businesses to the point where their
effectiveness is seriously compromised, making efficient
communication all but impossible. A qualified consultant will be
able to assemble a team of top IT professionals familiar both
with your specific business and the various interface
problems that can be expected between you and your partner,
ensuring that an operational platform is up and running when you
need it.
STAFFING YOUR EXPANSION
–
Staffing your
foreign office with qualified professionals at every level can
be among the most challenging aspects you will face in your
overseas expansion. Not only are there language and cultural
issues to keep in mind, there is actually locating the right
people for the positions you need to fill. This is a particular
tricky issue when staffing an office in Europe, where the
privacy laws are such that finding even basic information about
applicants can be virtually impossible unless you know exactly
where to look. Most importantly, it is critical that you find
people who not only know their jobs but also understand the way
we do business and are comfortable with interacting with
Americans. A qualified consultant will have both the
understanding of the various cultures involved and the necessary
contacts to save you time, money and angst by finding the right,
qualified personnel for every overseas position you need to
fill.
EXPANDING YOUR EXPANSION –
Now that you have successfully made your expansion overseas
and are up and running profitably, your work is not over. As a
matter of fact, it has just begun. Having established your
company’s presence, it is time to start looking for ways to
increase your sales and, thereby, your profits. One of the most
effective ways to do this is to be able to both spot and
position yourself to take advantage of the various trends that
come and go in every conceivable facet of the global
marketplace. This is where your qualified consultant can prove
invaluable. Because their business is keeping abreast of what is
happening in the international economy, your consultant will be
able to keep you informed on the latest trends in your industry
while pointing you towards new, broader potential markets within
your current – or future – expansion area.
There is a
certain element of risk involved any time any company decides to
expand its operations, and this risk is compounded when that
expansion takes place overseas. The key to successfully
expanding overseas – and minimizing your risk – is to make sure
that you take advantage of all the tools that you have at your
disposal. While the above five examples are certainly nowhere
near everything a qualified consultant can do to ease your
transition into new foreign markets, they do show what an
important tool having someone who knows their way around the
global economy is. The money they can save you – and in
increased profits they can help you earn – will go a long way to
funding your next expansion!
If you want to learn more about Steve McLaughlin click
here
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2006 All content property of European Weekly unless where otherwise
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