Businesses are increasingly considering international expansion as a key avenue for growth. However, navigating unfamiliar territories can be a daunting task for those venturing into new markets for the first time.
Below, 18 Newsweek Expert Forum members share tips for how businesses can successfully navigate international growth. By prioritizing research and building strong local connections, business leaders can engage with new audiences with confidence.
1. Study the Regulations That Apply to Your Business
When expanding internationally, make sure you understand the laws and regulations that apply to your business. Invest in expert advice, talk to relevant trade and professional organizations and reach out to regulators where appropriate. This can save your business a lot of time, money and stress. - Ben Jackson, Innovative Payments Association
2. Understand Cultural Differences Around Work-Life Balance
Local culture drives project resource estimates. The role and importance of an employer in an individual's life varies by country. For example, some cultures value work-life balance a lot, so make sure you understand this when creating resource plans and setting pricing. I have seen global consulting firms lose millions as they enter new markets by assuming certain local salaried employees will work over 40 hours per week. - Kevin Carr, Edera L3C (operates the National Coordination Center)
3. Create a New Strategy for Each New Market
Look before you leap! As someone who has invested in more than 80 countries, don't assume that the same strategies that have helped you expand successfully in the U.S. can be applicable everywhere around the world. It's an easy trap to fall into. Remember that there are roughly 195 countries, each with a distinct mix of income, values, tastes and lifestyles. Be smart, be thorough and be careful! - Peter Marber, Aperture Investors
4. Develop a Deep Understanding of the Workplace Culture
Prioritize a deep understanding of local cultures in the workplace. This means going beyond surface-level awareness to delve into the nuances of communication styles, customs, values and traditions that influence business interactions. This will focus your team on the business instead of interpersonal challenges. - Chloe Alpert, Enobl
5. Engage in Multifaceted Research
Businesses seeking to expand into international markets for the first time, or at any time, need to do their homework on the ground. A few areas to cover include market research and strategies, local policies and customs, legal and regulatory compliance, local partnerships, logistics and supply chain, currency and financial management, customer support and risk and contingency management. - Lillian Gregory, The 4D Unicorn LLC
6. Consider Starting Small and Scaling With Success
You have to go slow to go fast. Ask critical questions, and then start small. Important questions to consider are, "What is the purpose of this expansion?" and "Why is this our expansion strategy?" Also consider, "How long will we wait to realize ROI? What are our exit criteria?" and "If we're successful, what are our expansion criteria?" Finally, "What is the smallest pilot we can launch and learn from?" - Karen Mangia, The Engineered Innovation Group
7. Prepare Your Customer Service Team for New Markets
Before you launch into the international market, make sure that your customer service staff can accommodate language, cultural and time differences. Even if you are just expanding into other English-speaking countries, it's essential that all outward-facing staff understand the differences in colloquialisms and idiomatic phrases. - Laura Kasbar, GemIIni Systems
8. Pay Attention to the Details
Make sure you understand the culture and the norms of the places you are expanding into. You need to absolutely be on your P's and Q's. Being ignorant of culture during the expansion phase into international waters will be your worst enemy. - Christian Anderson, Lost Boy Entertainment LLC
9. Build Partnerships With Local Businesses
Build genuine connections with local businesses and industry influencers in your target market. Such relationships provide valuable guidance, open doors to opportunities and help you with the challenges of doing business in a foreign country. When expanding internationally, trust and local support is a crucial part of a business's growth. - Anna Yusim, MD, Yusim Psychiatry, Consulting & Executive Coaching
10. Approach New Audiences With Empathy
To expand internationally, empathetic listening to the local market is crucial to understanding your audience's unique needs, culture and communication style. By listening, you can adapt your approach to cater to them, allowing you to connect and build trust with your international audience. - Adi Segal, Hapi
11. Conduct a Market Analysis
Do a market analysis to see if your product will be a hit or miss. Secondly, check with U.S. customs to see if the product being sold can be exported. Determine what type of documents you'd need in order to internationally ship the product. Then focus on the demand. - Tammy Sons, Tn Nursery
12. Build a Strong Understanding of the Region
Expanding into international markets presents significant opportunities, but it also comes with a set of challenges. By placing an emphasis on understanding the cultural, regulatory and market landscape of the new region, businesses can increase their chances of success and minimize potential missteps. - Britton Bloch, Navy Federal
13. Make Local Connections
Find a local representative. They will be like a bridge to the heart of the local scene, giving insight into local culture and introducing you to the right people. Remember to be patient and open to learning new ways of conducting business, as things will be done differently than in your home market. Having a local representative will help you leverage the nuances of your new target market. - Gergo Vari, Lensa
14. Make Sure Your Offering Is a Good Fit for the Market
Just because people in another country are showing an interest in your product or service doesn't always make it a viable market. Every country has its laws and you need to be keenly aware of the laws, tariffs, taxation and liabilities that you will take on before you expand into that market. Some countries forbid certain products or services or are specific about how products can be made. - Baruch Labunski, Rank Secure
15. Leverage Online Ads to Gauge Interest
Digital marketing experiments are a great way to test the water and hone your messaging for the audience. For example, you can set up a Facebook ads test with different product features or benefits to see what resonates best in that market. Digital tools can help you test and refine your approach quickly based on actual results if you don't have the time for focus groups. - Krista Neher, Boot Camp Digital
16. Foster a Deep Cultural Understanding Beyond Demographics
Consider using the cultural canvas strategy, which is inspired by psychological immersion techniques. With this strategy, you need to dedicate a stage in your business growth to purposefully comprehend the social fabric of new markets. Instead of just demographic data, capture local customs, emotions and stories. This "canvas" will act as your cultural compass, ensuring your business strategies align with regional psychologies. - Dr. Kira Graves, Kira Graves Consulting
17. Learn From Local Partners
Seek local partners with profound market knowledge. Their insights can help you sidestep common pitfalls and cultural nuances. Moreover, partnering with established entities can offer a platform for early success, accelerating your brand's acceptance and growth. Tapping into local expertise isn't just smart—it's essential for a smooth global transition. - Ian Wilding, Hangar 75
18. Invest in Cultural Intelligence
Before leaping abroad, dive into the local ethos, values and consumer behaviors of your target market. This isn't just good manners—it's strategic. By tailoring your approach to resonate with local nuances, you're not just importing a product or service; you're exporting a brand experience that feels native. - Joseph Soares, IBPROM Corp.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
