Doug Taylor: Managing director, Pacific Business Intelligence
Many small companies get caught up in the excitement of international sales without doing the research and planning that will help them be successful. While there are enormous advantages to making the jump into the international sphere, there are some key questions to ask.
•Should you be there?
You need to evaluate the market opportunities through detailed market research. What are the key factors that will determine your success? These could be increased sales, new partnerships or new suppliers. You must also identify who your key competitors are (probably not the same competitors you face in your own country).
•How do you get there?
Once you have decided on the international market(s) you want to enter, you have to decide on the most appropriate entry strategy. Will it be to simply set up a distribution or agency agreement? Will you partner or joint venture with a company or purchase a company in the market?
•Know the culture
Culture plays an integral role in all business relationships, and you have to understand how this works.
•It costs more
Budget for expenses that you don’t normally incur. These include travel and business development expenses.
•Best customers
Your market analysis should identify customers. It is easier to pick “low-hanging fruit” than go after customers that will take a great deal of effort to bring on board.
•The final push
Do you have all the proper forms, documents and government approvals? You will need to ensure you have a foreign exchange process in place to repatriate profits. You will also need to talk with your bank or a government agency such as Export Development Canada about financing and payment insurance.
Competition in the global market is intense. You will need to bring something different or innovative that allows you to compete with and beat your competition.
