How To Develop a Global Business Growth Strategy [Infographic]
Taking your business global is an exciting prospect that many entrepreneurs feel they have worked their whole lives for. Going global requires lots of research and preparation, along with a great strategy.
Having a strategy when expanding your business globally will seamlessly execute the growth process and prevent mistakes along the way.
Attainable growth goals and strategies are needed when expanding your business overseas. We have curated a guide to developing a successful business growth strategy before taking your business global.
The Ansoff Growth Matrix
Before developing your global growth strategy, you must know what your growth goals are. The Ansoff Growth Matrix is a business model that can help entrepreneurs find the type of growth they are looking for.
There are four types of growth strategies defined by the Ansoff Growth Matrix.
Market development is the process of taking your current products into a new market to attract a new customer base. It forces entrepreneurs to decide how to market and present their product to a different demographic.
Many entrepreneurs conduct market research to decide where their product would be a great fit before expanding.
Market penetration involves entering into an existing market with a product that is already being offered in that market. Business owners often use price points to compete with the existing product.
This strategy provides business leaders confidence that their product will be well-received, as there’s already an existing customer base for it.
This strategy is best for business leaders that like to live on the edge. This strategy revolves around creating new product lines for new markets. This will diversify a company’s portfolio while simultaneously getting them new customers.
Product development involves a business staying in their current market but developing a new product or modifying an existing product. This is in an effort to increase customers and their share of the market.
It can be a risky strategy, as the new product should be emphasized in marketing without putting current products on the back burner.
8 Steps for Developing a Global Growth Strategy
No matter what your growth goal is, a business growth strategy is necessary for success. Follow these steps to create a global business growth strategy that will help your business succeed upon entering a new market.
#1. Identify Your Ideal Customer
Identifying your business’s target customers can help you identify where you should expand globally. This can prevent you from spending marketing money in an area where the demographic is very unlikely to buy your products.
#2. Pick Your Locale
Deciding where to expand your business globally is the next step to success. Think about which location is best for your business strategy, as well as the economic conditions, and if your product could be useful there.
#3. Conduct Market Research
Market research is especially essential when expanding into new markets or countries. Conduct research on the new customer base, competitors, and investors you’ll encounter in this new market.
#4. Set SMART Goals
Goals are essential for any great leader. SMART goals are specific, measurable, attainable, relevant, and time-based. These will provide benchmarks to prevent your expansion from getting off track. They can also help you track your business’s progress when expanding.
#5. Prepare Financially
Moving to a new location is no cheap task. New rent, onboarding new hires, and advertising are just a few of the many financial hits you will take upon expanding globally. Run a thorough financial report before expanding to make sure you can afford the move.
Take into consideration even the smallest of financial obstacles your business may face, such as paying for an employee’s relocation.
#6. Plan Your Course of Action
Establish what should be done to help you achieve your goals. Having an actionable plan in place will help you stay on track. This could include developing a marketing plan for your new market, hiring a few new employees in the first quarter, or conducting an audit to see where funds can best be used.
#7. Consult a Legal Team
It is best to consult a legal team when preparing to expand overseas. Different countries have different rules and regulations that you must follow upon doing business there. This can include everything from workers’ rights to taxes. Having a legal team alongside you will help your business stay globally compliant and out of hot water.
#8. Measure Your Success
Continue to use your SMART goals as your business continues to grow and expand overseas. This is a great way to compare where you are now vs. where you started. It can be easy to let your goals fall off, but tracking your progress can help you stay on track.
No matter your plan of action for expanding globally, there are experts ready and willing to help you along the way. The risk is always worth the reward when it comes to global business expansion!
About the Author!
Lily Scott is a content creator living in northwest Georgia. When she isn’t creating content, she loves curating her online boutique and playing with her two cats.