If the time has come to expand your business entering a new market is one way to do that. There are a number of ways to enter a new market. You may find yourself using one or more of these strategies. To know which is the correct approach will require you to do your research. A great deal will depend on your product(s) and/or service(s) and the country you are planning to enter.
Selling using a website is one of the most cost effective and popular direct methods. Another is direct mail outs to customers, or occasionally visiting with customers. You may also choose to open an office in the country where you are planning to enter, or find an overseas partner. All of these options have pros and cons, as well as financial and legal implications that need to be considered. You should meet with your lawyer and accountant before making a final decision.
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Establishing working relationships in the new market is key to your success. You’ll also need to maintain that relationship once you’ve built it. Exporters work really hard at building these relationships over long distance. If you are new to exporting it’s a good idea to use a well-established agent. In these relationships you are provided with established customers in the new market and the agent gets a percentage.
Franchising is another strategy that is a good way to enter a new market, as are royalties and licensing. All offer a fast, affordable way to enter other profitable markets, although you do have less control. Joint ventures have become increasingly popular over the last few decades. With a joint venture you partner with a business that exists and you share the opportunities and the risks in the new market.
Many companies choose to manufacture their products offshore because the production costs can be significantly less, transport costs can be lower, and that means you can get your product to market much faster. Today it’s easy to export online.
When exporting to another country you can directly approach customers or work with a liaison for an indirect approach. You’ll have to decide which is best for your business. Consumers are becoming much more comfortable purchasing online, which means entering an international market and reaching international customers has never been easier. Selling online lets you test the market without the major investment. You may want to create a website that is localized and in the language of that country whenever possible.
Entering a new market can be exciting and it’s a great way to increase your sales and thus your profits.
