Deciding when to go global is a tough call for entrepreneurs. They may be tempted by opportunities in hot markets like China, India or Brazil, but could risk venturing abroad before they’re fully prepared. While selling overseas extends your company’s reach, you don’t want to move into international markets too soon and use resources you need to continue growing on your home turf.

1. 10 questions to ask
before expanding overseas

2. Introduction
 Deciding when to go global is a tough call for entrepreneurs. They may be
tempted by opportunities in hot markets like China, India or Brazil, but
could risk venturing abroad before they’re fully prepared.
 While selling overseas extends your company’s reach, you don’t want to
move into international markets too soon and use resources you need to
continue growing on your home turf.

3. a. Have I built a solid
foundation at home?
 Make sure your business is stable
on a day-to-day basis before
pursuing overseas markets.
 You should determine whether
your business could function well
in your absence.
 Companies also need to have the
distribution running smoothly
enough so that they don’t have to
focus on it constantly.

4. b. Do I have the bench strength for
international expansion?
You will need to assign one or two
senior employees to your
international effort. You need to
determine whether you can afford
to move people from their current
responsibilities, as well as
whether they bring–or can quickly
develop–the necessary skills for
overseas sales and marketing.

5. c. Will I find the talent I need
in another country ?
 If you decide to expand, finding local
talent can be a challenge. Some
countries simply do not have
enough of the skilled labor
companies may need.
 You also will be competing with
established companies that know
where to find talent and how to
recruit local candidates.
 One potential source: local
educational institutions such as
engineering programs and business
schools.

6. d. How will I need to adapt
to the local culture?
 Some countries such as
France and Japan expect
companies to adapt to the
local culture.
 That may mean customizing
your product or service to
meet local customers’ tastes.
 At the very least, you will
need to put your marketing
message in the local language
and make sure the meaning
translates correctly.

7. e. Do I understand the cultural
implications of the sales process ?
 Closing a deal abroad can be a vastly
different experience than you’re
probably used to. Some cultures
struggle to say, “No, we aren’t
interested” in a product/service,
which means you can have an
extremely long and costly sales
process that never leads to a sale.
 To avoid this problem, look for
customers who have bought similar
items or services in the past. And
sometimes it’s better to cut off talks
if they lag for too long.

8. f. Have I sized up the
local competition ?
 Understanding your competitors
abroad can provide insights into
how – and whether – to expand.
 Many companies don’t take time
to figure out whether similar
products and services are already
available in a new market and
what they would need to offer to
compete successfully.
 Spending time abroad and
speaking with potential
customers can help to avoid
costly mistakes.

9. g. Do I need an
international partner ?
 For many companies, it’s critical
to find a local partner when
expanding overseas. Partners
can help facilitate sales, while
keeping costs down for the
home office.
 Forming a partnership takes
time – often, a year or longer –
and requires plenty of due
diligence to find the right fit.

10. h. Am I financially able to sustain
an overseas expansion ?
 Expanding internationally requires
a start-up-like period that’s longer
than many entrepreneurs
anticipate.
 You have to expect to lose money
for a while. So, you not only need
enough capital to make the initial
investment, but you also should
have a long-term financial plan in
place.
 You will likely need to update the
plan to reflect actual revenue and
expenses as you ramp up in the
new market.

11. i. Where is the potential
for red tape ?
 Expanding beyond the domestic
market can mean lots of extra
paperwork, especially for
medical and technology
companies.
 With such a variety of
regulations surrounding
exports, it’s important to
understand what’s required for
your particular industry before
attempting to expand abroad.

12. j. Should I simply expand
my online presence ?
 For some companies with a strong
website, it may not be necessary to
establish a physical presence abroad.
 You may be able to offer overseas
shipping and expand payment options
without the hassle of extensive tax
regulations.
 But at least in some markets, you
would need to develop websites in
another language that accept the local
currency. Online shoppers are more
likely to buy when the experience is in
their local language [and] local
currency.

13. More...
• Free webinar: « Step by step for exports »
This webinar will help you to learn about the world marketplace and how your company
can do business there. It concentrates on the overall principles of exporting and
describes the processes that businesses commonly use to develop export strategies
tailored to their needs.
• To register:
http://www.international-trade-training.net/cfciins15092011
• On line training : "Practical aspects of international trade »
The objectives are to familiarize contractors, manufacturers, exporters, importers, traders
and service providers a comprehensive view of international trade. Short-term training
will help to clarify and develop the skills to act locally and abroad in foreign countries.
• To register:
http://www.international-trade-training.net/tiki-index.php?page=PracticalaspectIT

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