Business Opening Strategies Abroad
Not a few people who have a desire to own and run a business. Moreover, the business can run successfully.
Opening a business abroad may be one option taken. Why? For some people opening a business abroad is a challenge as well as a very interesting opportunity to run.
Business Opening Strategies Abroad
The process of opening a business abroad is actually almost the same as opening a business within the country or at your own place but has a difference. Why is that? Simple example is business abroad the same as business in the country that we are equally looking for consumers, but the typical or character prospective consumers abroad is not necessarily the same as the character of prospective consumers in their own country. That’s what we have to look for and be explored further so that the business we are going to run overseas can work and succeed.
To run a business, there are 2 strategies to open a business abroad that can be taken is Developing business from home to abroad or directly open a new business abroad.
Developing Business Abroad
This strategy is done if we already have and run the business in the country. To carry out this strategy, there are several requirements that need to be considered by the business actor, such as:
- Brand or product has been widely known in their own country.
- Has a good sales and distribution network in the country itself.
- Have a good image or perception in the eyes of the community.
The above three by the author is important because this will be the capital for business actors to “sell” and promote their brand and products abroad and serve as a good portfolio, especially when facing similar competitors in the country.
When our products or businesses are well established, we benefit from the expansion strategy that we can take. There are several steps or strategies that can be taken when we want to expand overseas, including:
- Open a branch
- Opening the franchise
- Conducting joint venture
From the above expansion options, it must be adjusted again with the vision, mission and business plan to be taken by entrepreneurs in developing their business for the future.
Opening New Business Abroad
The second way that can be taken by prospective business is to directly open and start his business in the country.
One of the advantages of this way is that we can directly pioneer our business activities in that country without needing to pioneer business in our own country. Usually, this step is taken by small business actors or individual businesses because it tends to be easier and more affordable and faster costs implemented.
One of the challenges faced is that we must really see what opportunities we can “enter” in existing markets and other challenges is how we should build a brand image from scratch or “zero” because potential customers have not heard or have references from products that We want to sell or offer. For that, when pioneering this product from scratch, the power of Word of Mouth or reference is the most effective and powerful promotional medium.
Things – Things to Look For In Opening Enterprises Abroad
After determining the choice of strategy to open a business abroad, there are several things to note are:
Make sure the product to be sold overseas has a market but also make sure whether the existing market is only temporary or is permanent.
Notice how the distribution system, ranging from the distribution of raw material procurement and distribution of products including distribution costs or supporting facilities and infrastructure.
Local Government Policy
The policy of the local government will determine the direction and potential of our business in that country. Therefore, we also need to know exactly how the trading system prevailing in that State and the legitimacy that needs to be met to run the business in that State.
Culture and Character of the Population
Learn also how the culture and character of the locals. Thus, we can consider and know whether our products are in accordance with the interests and habits of the population, whether we need to modify the product to fit the character of the local population or not.