By launching your firm in another country, you could expand into a new market, potentially increasing your customer base. But this can be daunting, especially as you will be unfamiliar with its customs and business laws. Turner Little explains how to launch your small business in another country.
Choose your country carefully
It is inadvisable to choose your new market, without conducting extensive research beforehand. Ask yourself, where does the greatest opportunity lie for your business? It is critical that you examine factors such as language, current market behaviours, business legislation and certification, as well as competing firms, to ensure you select the most favourable market for your firm.
Survey your consumers
Your business model may be unique, making launching your firm in a new country especially advantageous, due to lack of competition. However, you must first ask yourself, whether there is a target consumer base, in a country which is unfamiliar with the products or services that you sell. Here, it is advisable to conduct market research and focus groups in your chosen territory.
You can gather consumer data quickly and conveniently by utilising online research tools like Survey Monkey. With this tool, you can communicate with different consumer groups in your new market from anywhere in the world, as users have access to specific customer profiles. You can also utilise the services of marketing groups which focus on your field, but this can be expensive. The advantage of this approach, however, is that these groups are operated by qualified individuals, who can avoid steering the group towards one specific outcome, supplying you with unbiased consumer data.
Consider your distributor
If you are not familiar with the primary language of your new market, you will need to partner with a local distributor. Contact non-competing firms in your industry, to determine which distributors they use. Ensure you get references for the distributor, to determine whether they provide first-rate services. Remember to sign a sole agreement with distributors, rather than one which guarantees exclusivity. This way, if legal issues arise, you can provide your goods and services directly to retailers.
It is critical that you research business regulations in your new market, so you can determine the administrative costs of expansion. With this strategy, you will be able to ensure that your firm meets all the legal requirements to trade within your new country and has the certificates major retailers will need to sell your products and services to consumers. This applies to your manufacturer, as some retailers will require them undergo ethical standards audits, to ensure they conform to regulations.
We should note that if you are planning to expand into an EU country, Brexit may have an impact on your plans. For example, Brexit could change trademark protection, requiring you to register trademarks for new products in both the UK and the EU, once the UK’s removal process is complete. As experts in this field, Turner Little can advise you on trademark registration matters internationally.
Alter your packaging
You may also have to create new packaging when expanding into another nation. Your brand name could be popular in your own market, for example, but boast completely different connotations in another, requiring you to change your name and thus develop new packaging, in order to appeal to your new consumers. If you decide to adopt a new name, you will need to trademark it within the country, to protect your brand from competitors and this is another area where we can help.
What will you charge?
Before moving your firm into another market, ask yourself, what will you charge? What may seem a fair price to your existing consumers, may be outrageous to your new customers, so by using your existing price models, you could outprice your goods, losing custom. Here it is key to research what your competitors within your new country are charging. You should also factor charges such as duty costs, which can vary from nation to nation, into your pricing, to ensure you accrue a decent profit.
You can reduce the costs of expanding your company into another market, by setting up an online presence within the country. It is advisable develop an international website with one domain, so you can handle domestic and foreign business conveniently. We supply the internet services you need, such as domain name registration, to conduct business online anywhere in the world.
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agent, Registered Bank Intermediaries and Business Consultants, as well as Trust provider. You can receive our monthly newsletter by signing up using the form below.