Take the United States as an example. The US ranks third in the world as an exporter of goods, behind Germany and China. However, add services into the mix and the US becomes the world’s largest exporter.

Brazil, India and China – three of the world’s fastest growing economies – are importing more and more. As their economies grow, the flow of exports to these regions will grow. Indeed, the International Monetary Fund estimates that these three economies will account for 25% of world GDP within five years. This means big opportunities for businesses.

However, expanding globally is not for the faint-hearted. Success comes slowly. Businesses have to manage cultural differences, especially communications. A local presence is often essential. And don’t underestimate the management time global expansion can consume. Make a success of it though and you will reap the rewards. And economists agree that, for recession-hit countries, exports are key to rebuilding economies.

What can go wrong?

Planning is difficult

Trying to read and plan for your local market is difficult enough; planning for a foreign market is even more fraught. One thing is certain: your initial, wellconstructed plans will need revisiting over and over.

Not understanding your customer

Don’t make the mistake of assuming your new-found foreign customers act in an identical way to your home customers. In fact, assume they don’t, and then set out to understand what they want and how they do business.

Your product offers nothing new

You will find it hard to introduce a product into a crowded marketplace without a local presence and an infrastructure already in place. Of course, if you have a product that no one else has, you can have distributors all over the world.

Wrong product, wrong time, wrong place

Expanding into a new market is all about having the right opportunity, and taking it. It is no good having a great product and trying to force it on a market that either doesn’t need it at all or doesn’t need it yet.

Division of resource

Moving into a new market needs commitment – you need to commit money, people or, more likely, both. Diverting resources to your new market means taking it away from somewhere else.

Getting it right

Knowledge is power

Wherever you are looking to expand, the chances are they do things differently there. Don’t assume what works at home works everywhere else. Meet with and spend time getting to know your global partners, the way they work, and their expectations. They will want to get to know you too.

There will almost certainly be cultural differences too. Communications, systems and processes may be a lot different from what you know. Working practices may differ from what you are used to. Make sure your people know where and how they fit in to the overall picture so they feel a part of the company. Ask their opinion. By all means use modern technology like video conferencing, but there is no substitute for talking face to face.

Once you have done your homework you will be in a much stronger position and will be able to plan using this knowledge rather than the experience you have of your home market. This will mean your plans and timescales are realistic and not over-optimistic.

Protect your intellectual property

Make sure your budget for this is relevant to the area in which you operate. Laws protecting trademark and intellectual property vary widely throughout the world so make the right investment before you begin trading.

Get your marketing and your message right

Again, what works in one market can fail in another. Do you market through distributors and get to the customer that way? Or do you market direct to the customer and get them to come to you? Research your market, make use of local knowledge and tailor your marketing strategy to fit.

Although challenging, global expansion is worth the effort. Just take the time to prepare properly, make the right investment in people and infrastructure and you will reap the rewards in the future.