Every ambitious entrepreneur aspires to break into the international market. Indeed, going global can boost revenue and prevent business stagnation. But timing is crucial when entering the international market. The right time will open your brand to more potential customers. On the other hand, you risk being overwhelmed by increased demand or even collapsing your business if you start at the wrong time. How will you know if expanding your business to the international market is right? The following signs can guide you.
1. You’re attracting more international than local interest
If international visitors show more interest in your brand or products than your local target market, consider going global. You should always follow where the demand is coming from. But it also helps to know why you have more foreign interest than local. Your brand or product may be more suited to another culture or way of life, so keep this in mind.
2. The thought of reaching out to international customers excites you
Of course, excitement isn’t enough reason to jump into the international market, but it could be a sign that you’re ready to. The most important thing is to understand the hurdles involved. Find out if international prospects will be interested in your product, what shipping issues you’ll have to deal with, and the marketing strategies to use.
3. You have outgrown the local market.
It’s possible to outgrow your local market, especially when you have already saturated it. Your brand and products have reached almost every nook and cranny in your local market, and there appears to be no other expansion opportunity. When this happens, your sales can easily plateau, and reaching out to the international market may be the next logical step.
4. You had the international market in your business plan
Every business is supposed to have a plan, business goals, a well-defined vision, and a business philosophy. These will guide your business’ future path and determine whether you’re being successful or not. If you’ve achieved your business goals and have reached a stage in your plan that targets the international market, then you should take that next step in line with your vision for your business.
5. You’re financially ready for international expenses
When expanding your business to the international market, there are several expenses to anticipate. These may include legal and regulatory fees to comply with international trade laws, localization expenses, and various costs associated with obtaining necessary licenses and permits. You may also have to deal with shipping and logistics expenses if you plan to import or export goods internationally. And, of course, there are some potential customs duties and tariffs. And even if you’re financially ready, you should know how to cut down on some of these expenses. Regarding customs duties and tariffs, for example, you can take advantage of Section 321 fulfillment to help you save up to 20%. Other expenses may include offices, distribution centers, marketing and advertising, and staffing and training costs.
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