Global expansion of Startup
You wake up one day and realize that you have an idea which can not only change your life but hundreds of other lives too. You, therefore set that idea into action becoming an Entrepreneur in the process. Setting up your Business in the local area and making a firm place in the market is the first step toward the change you wish to bring. But there is no limit to success hence, comes in the picture- expansion. Expansion of your business. From Local to Global. Hard it is but not impossible. Expanding business internationally is a feast for Entrepreneurs but only some can reach that step of success. What is going to make your startup any different? What is so good about your business that it will shake the global market completely? Let us find out for below are mentioned few important issues you need to consider before and while the global expansion of Startup.
The first Step when you decide to expand your business internationally is to decide whether or not you are ready to take such a big step. When you are cent percent sure about it then only proceed. Perform a Gap Analysis for an honest answer. Then decide where you want to expand your startup, choose targets. But on what basis? While choosing places where you can expand your business, keep in mind about your targeted audience. As in doing your product will have potential customers in so and so place, is it fit culturally. If your product happens to violate any kind of religious belief or cultural view of a country your product is likely to fail in that particular place. There will be language barriers also, make sure to recruit and organize your team in such a way that this kind of small problems can be easily sorted. Make sure that places you are choosing for expansion of your startup internationally are in sync with your products.
Next step is to prioritize. Give priority to the places where your product is likely to excel the most, also prioritize your strategies. You will definitely form many strategies when you get down to form a business plan, make sure each strategy has its own priority number so that execution can be done smoothly without any confusion. When you go global, competition naturally increase. It gets bigger and tougher. Make sure your product and your vision are strong enough to survive amidst them. Conduct foreign market research and formulate a proper action plan including customer's expectations to the distribution of your product better do a SWOT Analysis, it will give you a clear idea of that particular place. Setting prices for your product is also an essential step. Study the economy of a place in detail so that your product is neither too cheap nor too expensive for general public. Create a Budget plan. It is very essential that before going international you have a proper budget Analysis. Every country has different economic status, therefore, have a clear view of your budget and proceed only if it's in sync with that country's economy.
Next step will be researching all the legal norms of a specific place. Like in India, MCA or Ministry of Corporate affairs lay down certain rules and regulation for every step while setting up and running your business, other countries also have certain organizations with a different set of rules and regulations. To avoid any legal issues make sure you study all the norms carefully. These legal issues include all the tax payments, company registration procedure, special entities etc.
Next, Make partners. Being a startup or even if you are an established Entrepreneur, it's rather difficult to establish yourself in the global market, for as stated before the competition is bigger and tougher, therefore it's essential to have good relations with the local Entrepreneurs of the place you are hoping to expand your business in. This will not only give you an insight of the market but will also help establish yourself quickly and effectively. Make foreign partners, find yourself distributors, that way you won't have to wait for customers and getting visibility, for your product will be distributed by already established companies. Build a healthy alliance but keep in mind to do it on legal terms and not on friendly. You have to be very careful while giving the insight of your products to some other party. Giving Franchise rights to certain locally established companies can also be considered but with safety. Even if you decide to have foreign distributors, make sure that you are involved in each and every step. Be active participant because after all, it is your product and your name which is at stake. Many Entrepreneurs see importing as a low-risk option for going international also.
At last, whatever way you choose to go international, make sure that in the process you do not leave the idea, the essence, and the vision of your company. Be careful, while doing research or searching potential partners. Do everything under the law and complete all legal procedure in order to avoid controversies. Make sure you keep your product and its essence intact and definitely you will do well in the global market maybe slowly. But as it is said 'Slow and steady wins the race'. Go slow, dream, create and be a true Entrepreneur!
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST Software, GST Return Filing, GST Registration, Section 8 Company Registration, Nidhi Company Registration, IEC Registration, Fssai License, File ITR Online.
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