Do you know how to get your products into the international markets?
In the development of any business, a moment may come when it grows out of its market, as Alice in Wonderland has grown out of her house. At this point, the time comes to scale to international markets.
Why should projects scale to international markets?
Entering the international markets will help your project: Get access to a new target audience
- Increase sales and profits.
- Become more competitive.
- Increase the company’s capitalization.
- Due to the growth achieved in the foreign market, to get an opportunity to attract investments from foreign investors at a higher rate.
What is international markets?
International markets are those markets that are outside your country. Within them, there are main areas – the United States, Europe, China, Middle East, Southeast Asia and Latin America. The most dynamically developing among them are the markets of the USA and Europe.
Why the USA? The American market at the moment is the largest in the world, the most capacious, open and receptive to innovation. Success in the American market is the key to success in the world. As for the European market, it has a high purchasing power, a wide geography of sales and the possibility of country-by-country output.
Which companies should enter international markets?
Any company that has a stable business in their own country, a ready-made and popular product among the local target audience, and system sales and revenues, should think about entering foreign markets.
Unfortunately, many companies would like to enter the international markets but they do now know how. In this situation, you should take into consideration outsourcing your efforts in specialist in the field of international trade and internationalization like Salcix.
When to start scaling to international markets?
Before you start scaling, you need to make sure that you have proven the product hypothesis and have experience of growth in the home market. The company should also work stably without the personal intervention of the founders, who will have to pay much attention to the development abroad at first. Entrepreneurs who are ready to enter foreign markets should have a budget for business development.
Before taking the step, you should seek the support of international trade specialists and consultant like those working in Salcix.
Which cities of presence to choose within Europe and the USA?
Berlin, being a startup and investment capital of Europe, is an excellent entry point to the European market.
As for the USA, the best entry point here, of course, is New York. It has a higher concentration of potential customers from various industries compared to San Francisco and other cities in America. New York is in hour availability from other key centres of the country – Washington, Chicago, Boston. The city provides a wide range of opportunities for accommodating an office and choosing a place of residence for the first time, as well as many large events and ample opportunities for networking.
How to enter the foreign market?
The first thing you need to do is decide on the goals and objectives of your company for entering the international market.
It is possible to enter the foreign market with two main objectives – to attract foreign investment or to build a business with a positive economy and multiple dynamics of development. Decide what is your primary goal.
Take a sober look at your project and answer the questions:
- Are you ready to scale?
- Do you have members in your staff that are able to speak foreign languages fluently and have experience in dealing with international importers? If you do not count on this member of the staff you can hire them, but other option, in case you do not budget limitations to hiring a full-time worker, you can always outsource your export efforts in us. Check our prices for our services
- Do you have funds for product development in the new market?
If the answer is “Yes”, then you need to decide on which market the project should be taken to. Explore potential markets in terms of culture, mentality, and prospects. In Salcix we can help you out with this issue.
Study your competitors abroad, analyze their advantages and disadvantages. Do not forget also about non-direct competitors – perhaps the problem of your customers in another market is already solved indirectly.
Personally, go to the candidate countries, conduct a survey of potential foreign customers, get constructive feedback from the market and talk with market experts. You can also count on Salcix to do the aforementioned tasks.
- Remember that you are entering a market where people are carriers of a completely different culture and mentality, which means your project may not take root due to external factors. At the same time, it may happen that it will be easier to sell your product on the foreign market than in your own country, especially if the citizens have a higher purchasing power.
- Work through legal issues. Start your entry into a new market with a solid legal and financial basis. Contact specialized experts or consultants at the expansion and opening new markets such as those working in Salcix to help you open a legal entity suitable for your business, a bank account and provide your company with all the necessary administrative binding. In this case, you will be able to devote enough time to business development and localization of the product abroad, and not spend it on immersing yourself in the specifics of local law and resolving legal issues on your own.
In parallel with the decision of organizational issues, it is necessary to do the localization of the product. Localization of the product, contrary to popular belief, is not a translation of your marketing materials into another language, but a detailed adaptation of your product and value proposition to the market of another country, taking into account the difference in mentality.
You need to understand the problems and needs of the new target market, communicate with key market players and potential customers, get an intro with significant participants in your target market, create an information field around your product and immerse yourself in the cultural environment of the new country.
As part of this activity, you will need to competently deliver your adapted value proposition to a new target audience, determine the channels and partners through which sales will go, organize offline and online work, including SMM, email marketing, cold calls, etc.
- When you test new channels and identify suitable ones for scaling, you will be able to start building up staff and increasing sales according to the scheme you already worked out earlier. From here, your growth in the overseas market will begin.
All these tasks should be performed by a specialist. Check our services so that you can find out how we can help you in your internationalization process
How much time and money is needed to enter another market?
Subject to engaging mentors, consultants and support programs with you, entering a new market and achieving a stable development dynamics, it will take you about a year. You have much more time and resources. Entrepreneurs who plan to enter foreign markets should be allocated a budget for half a year – a year for business development and living abroad.
In Salcix we are specialists and consultants in the field of the international trade. We can help you in all the stages of the internationalization process or even you can outsource your efforts in us. We can work for you fulltime or you can hire us hourly.