Global expansion tips for foreign business.
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Taking your brand abroad can be engaging, and numerous business visionaries would seize the opportunity. But the decision to expand your business market overseas is not as easy as imagined. Between building up a new client base, learning new laws and guidelines, discovering reliable accomplices, and getting comfortable with the nearby traditions, the road to becoming a global company is hard to navigate.
While only one out of every odd business is fit for such a test, some are. Before you choose to take the jump abroad, you need to think about these variables. While only one out of some odd business is fit for such a challenge, some are. Before you decide to leap overseas, you need to consider some factors.
However, there is one question you must answer before the international expansion strategy is carried out, are you sure your business is suited to overseas markets?
Global Business Overview
To answer that question, you need to do a ton of research related to your product and the potential market that you will go to. Global Business Expansion usually thought of the company to expand their business throughout the world. In this case, globalization also handles several parts of the business goals to spread the market, not only in a regional area but also across the globe.
In conclusion, international business expansion is an immense responsibility. It comes with risks, benefits, and real advantages for you and your business. Breaking another nation’s market is a truly exciting strategic step.
According to BRIGHT Indonesia’s Co-Founder, CEO, and Principal Partner, Mr. Primadi Wahyuwidagdo Soerjosoemanto, the possible current trend that would be promising for business expansion could be anything. Some of the current trends are business digital-related and consumer goods related since that is the easiest way to send their products. Healthcare is one of the sectors that is projected to have strong growth, particularly in this pandemic situation. People tend to pay more attention to their sanitary and also health support to prevent them from getting Covid-19.
Global Expansion Strategies
Mr. Primadi shared his opinion that global expansion is important to increase company market share and sales along with the fact that the company will be able to manage their risk if they have several countries as their markets. For well-established companies opening up their wings into a brand-new market is a way to find opportunities.
Chron (2021) added that, business corporations usually use several strategies as their milestones to achieve their business expansion throughout the world, including forming a strategic partnership, licensing, acquiring businesses, and building new facilities in multiple countries, also developing export-import activities.
However, setting up your business to a successful global expansion, your business should remind that the process would not be as easy as turning your palm. Global business expansion is a multi-level strategy plan that businesses use to expand their business market and establish their companies overseas, and that is why the global business expansion strategy is a marathon, not a sprint that would be achieved in a short period (Middle Market Growth, 2020). Here we have gathered five essential tips to make your international business expansion:
Global Business Expansion Tips
Make a top strategy
Many companies focus on something complex in planning something like creating a quality framework for global business expansion. But the most important thing is market research.
BRIGHT Indonesia would suggest, the company could start from the neighboring countries and regionally, since the cost is lower and the cultural barrier is not that high. It can be from a market size perspective, can also from purchasing power and market behavior.
In addition to market research, several things need to be considered:
- The percentage of chances that your product or service will be successful in the market.
- The need to build a physical office, add partners, and consider a license.
- Decide if you will be expatriating existing employees or hiring fresh talent from abroad.
- The need for professional employer organization (PEO) assistance.
Do not forget the technical stuff
If you decide to recruit some local people, you must ensure the quality of the products or services you sell is equivalent to the quality in the main office. Here are some technical things you can consider before doing global business expansion:
- Create a branch management team that can realize your strategy.
- Sort out business decisions that can be made at the local level and that can be made centrally.
- Hire some experienced people to set up IT and phone systems.
- Pay attention to the privacy of your company’s data. Protect employees from privacy violations, and follow the applicable privacy laws of that Country.
Expand your company’s vision.
No less important is the determination of the location that is felt most strategic and can bring a great profit. BRIGHT Indonesia would suggest, when the companies already have a good product, great capital, and sufficient export manager, it is the right point to start exporting their products.
In recent years, many companies have targeted the Asian market. Since some countries in Asia have fast-growing economies. For example, Singapore has been positioned as the second-best business place in the world in the PWC Cities of Opportunities report.
According to the report, Singapore is ranked highly for its adequate economic and social indicators. As such, Singapore has become a hotspot for many companies looking to grow, increasing the country’s importance as a gateway to Southeast Asia. Therefore, once again be reminded to do careful market research so that you can decide if your business will grow in the country.
Create and build a good new team and partner relationships
In preparing for international business expansion, you need to set up a new team in the country you want to go to. A team that has an awesome comprehension of the country and its people. But creating a new team with a new cultural background is surely troublesome. Not only teams but also partners. So, you need to be able to have a good and professional relationship in both internal and external business.
Diego Caicedo, co-founder and CEO of OmniBank, which operates in multiple Latin American countries, said it is pivotal to set up a local office and team that comprehend the market and language to comply with local regulations. He also said that having a local state manager not only ensures that the company complies in every new market, but also handles its spending efficiently. Likewise, by working with a local partner, you can ask for help to communicate the company’s extraordinary selling point on the correct strategy so that it can be meaningful to the local market.
Relying on local experts
Various problems that are commonly faced by companies that want to do business expansion we have explained in previous points such as cultural practices, laws, tax compliance, overseas hiring can actually be handled with help. Thus, it is important for businesses seeking international growth to understand that they need help. Because a product or system that works well locally may not have the same appeal overseas. That is why consulting local experts can help you better determine the demand.
The best way to approach your business expansion is to identify the most trustworthy and credible partners. In that way, you will be able to tap into their experience and insights.
The most important thing that you have to do to succeed in establishing your expansion in Indonesia is to build your strategy by doing the necessary groundwork and collecting business intelligence. As a result, understanding the business culture is crucial to develop the right communication style that aligns well with Indonesian businesses. You have to be willing to play the long game, as most companies take several years before they start seeing results from their operations in Indonesia.
BRIGHT Indonesia as a Perfect Partner to Expand Your Business
Indonesia has been developing progress to create a good business environment for foreign business. By understanding the Global Business Expansion Tips, expectedly the foreign business stakeholders would probably see a great opportunity for their companies to expand their business abroad, and boost a chance to open a bigger new market expansion outside their home countries.
Based on the Indonesian Investment Coordinating Board (BKPM), Indonesia has a good economic condition that continues to offer vast potential thanks to the country’s sustainable economic growth, political stability, large young population, and growing middle class, as well as abundant natural resources. To enter Indonesia’s industrial market, it is the best option for foreign businesses to have the right local partner in Indonesia.
BRIGHT Indonesia would help foreign businesses to enter the Indonesian market through our services such as Business Partnership Engagement, Management and Strategy Consulting, Business Registration and Establishment, and Foreign Direct Investment Promotion. The services will help your business to:
- Secure the agreement between our foreign client companies and future Indonesian business partners by providing a list of potentially suitable partners, arrange business meetings, and act as a liaison.
- Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
- Help our foreign client companies obtain the work and stay permit for your foreign employee in the Indonesian office: expatriates utilization plan (RPTKA), expatriates utilization permit (IMTA), and limited stay permit (KITAS).
- Link our foreign client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.
With exceptional local market expertise and networks in Southeast Asia, BRIGHT Indonesia will offer excellent services designed specifically to achieve your business company expansion’s goals.
For more information, email email@example.com.
This article is written by Galih Akmal Latif and Sintya Nur Muftiana.