Venturing into a new market is challenging enough. But when the new market is located in another country, this situation can get quite complicated. Here are some tactics to simplify the process.
Years ago, you had the inspiration to start your own business. It took hard work, plenty of late nights, and many weekends spent working. Now business is booming and you’re looking to expand. Moving into foreign markets is a great option that can be very rewarding. There are a number of ways to bring your business overseas.
Start an Office Abroad
Establishing an office in another country is the most effective way to break into a new market. However, it is also the most complicated and costly. There are costs associated with incorporating your business, acquiring office space, hiring employees, and so on. If your company can handle these expenses, this is an excellent way to penetrate the new market. It is important do select a country to establish your office very carefully. For example, if you’re to expand into the European market you have a number of nations to choose from. However business regulations, tax codes, and operating costs will vary greatly from country to country. Be sure to explore all your options before moving forward.
Operate from Your Home Country
Hiring a sales team in your home country to pursue international leads is an attractive option as long as certain conditions are met. First, unless you can afford frequent overseas trips, meeting face-to-face with clients mustn’t be a necessity; your sales team needs to be able to operate via phone, email, or video conferencing. Second, your desired market must be in a compatible time zone. Assume your company is located in Los Angeles and you are looking reach leads in Western Europe, which is 8 hours ahead. Normal business hours of 9am to 5pm in London correspond to 1am to 9am in L.A. Such an extreme time difference would make it quite difficult for your company to operate, unless you can find sales people who can work the night shift.
Appoint Independent Sales Agents Abroad
Sometimes a cost-effective option is to appoint independent sales agents or distributors abroad. Sales agents or representatives would represent your company in their local market and make a commission from your company on sales that they generate. Distributors would buy your products in bulk and resell to their buyers. This option would help you save on some of the fixed costs associated with starting an office, and you would also have the benefit of having local sales people who understand the market and regional culture.
If you need multiple sales representatives, you can hire a Master Agent who would establish a hierarchy of sales reps that report to him or her. This way, you only need one point of contact to keep tabs on your entire sales team.
While bringing your business abroad is an exciting undertaking, it absolutely needs to be approached with caution. Do your research before entering a new market and make sure the rewards justify the investment.
Have your business recently ventured abroad? Which tactics did you use to ensure the transition went smoothly?
SalesAgentEurope.com is a leading web portal that helps business owners find qualified, interested sales representatives & distributors to grow their business and expand across Europe. We also assist sales agents with finding new product lines and opportunities. Please visit www.SalesAgentEurope.com for more information about how we can help bring your business to the next level.