Setting up shop in a foreign country might prove to be either disastrous or profitable to any business owner. Judging whether or not you should enter into a new market can give you a long list of what you should and shouldn’t consider. If you’re having trouble negotiating with yourself on what you should decide on, here are three questions to ask yourself to see if you’re ready for the international market.
Are you working alone or with partners?
The answer to this question must be a resounding yes, with partners. Starting a business abroad is similar to setting up another site of your business; only this time it’ll be thousands of miles from your first building. You’ll need people you can trust within the area to run and prepare things for you in terms of handling paperwork, construction, weekly updates and the like.
Looking for partners who have an extensive understanding of the local area can give you a better advantage in expanding your business. For example, in the UK, real estate consultants Gerald Eve’s London knowledge can prove to be a determining factor in setting up shop in the capital of the United Kingdom.
Are you familiar with the local news?
You might think this silly to tune in to the local news of the area when you don’t even live there but keeping a close eye on local news outlets can give you a clearer picture of what potential problems you might have to face.
Tuning in to local business trends, such as the public interest in products or services, can be reported in the local news. Beyond customer interests, you’ll also need to pay close attention to energy prices and advancements in tax rates; these news reports are most likely linked to energy suppliers and political dilemmas that face the area. Setting the United Kingdom as an example, foreign investors are seeing the country as a buyer’s market for real estate instead of a seller-directed economy which makes it a critical time to buy properties now while Brexit is still an upcoming issue.
Business trends are hugely affected by local happenings in socio-economic and political issues. Being aware of the news keeps you up to date in taking advantage of opportunities for you and your business.
Is your product compatible for international consumption?
Beyond production costs and transaction fees, the critical question that you have to ask is if your product will sell in your chosen market. Find out whether or not your product is a profitable product to introduce in the market. Business owners need to answer the question of whether or not their products have an audience abroad. A clear indicator of this could be the presence of local competitors. Multiple franchises and variations of the product mean a growing interest in diversity, but it opens up a second issue for you to answer. It’s a whole different story in trying to introduce a brand-new product altogether, but it might be the risk worth taking in having an untapped customer-base that’s solely for your product.