In times of crisis, entrepreneurs look for alternative measures to mitigate the crisis consequences. One of these alternatives represents one of the most common roads and one of the hardest ones, the internationalization.
However, the internationalization is not a simple step, since it requires time for planning, evaluation and implementation. Before taking the leap into foreign markets, we must take into account the following factors:
1. Analyze your business:
Know the weaknesses and strengths of your business. You need to know consciously what works and what doesn´t in your company, which is the thing that makes you stand out in the market. As well as the viability of that product or service in a new market and the financial capacity of your company and to what extent you can invest to expand. You must have a good financial support to have a better chance of success.
2. Assess your target market:
Once you have already identified the country where there is a high growth potential, you have to study and assess the situation of the new market, its features, its culture, the opportunities and barriers that you may run into, as well, you need to check out if there are already companies in that country that offer the services or products that you want to offer in that same country and learn from their experiences.
3. Look for a local partner:
In some countries a local partnership is required. First, find out if the new market requires a collaborator/local partner. Similarly, if you don't know the market, it is recommended to rely on local partners as they provide the knowledge of the target market and potential business contacts.
4. Get advised:
Get advice from tax and legal experts that can guide and advise you on important topics such as: deciding which would be the best legal structure to start your business in the target market, on the benefits and advantages that laws can give you in both, the national and the international market, as well as on the tax and legal risks that you may run into.
Previous to the internationalization, go through these four steps, along with a thoughtful business plan, as well as with a high dose of ambition and appetite to expand the horizons of your business. These things are essential to guarantee the success of any foreign investment.