Expand your business internationally - 8 points to consider before Going Global

After recently celebrating my company's record breaking hot streak here at home, my new international business was rapidly turning cold.

It seems that my American success formula was not working with my fellow aliens who kept telling me to think differently in order to compete on their turf. If only I had known then what I know now, I could have saved countless hours, endless headaches and a bundle of money. I think I should do my homework a little 'more before.

Before you plan to grow your business and going global, these 8 vital points:

1. Are you a national player at home? The demand for your business in foreign lands closely correlated with the size and success of your business at home. In today's era of easy access to information, consumers and professionals in most countries are aware of what is popular here in the U.S. and what is not. If you are a business hot in here, it is likely that you will try to pull the demand for your brand "out there".

2. Which business model should you use? Franchising, licensing, joint ventures and business models of corporate ownership have their pros and cons. Some require more labor or more initial capital. Whichever model you choose will ultimately drive your rate of earnings growth for years to come.

3. Get the right partner. Ensuring the right business partners in each country is the number one rule for success. Be sure to check your potential partner's financial situation, influence and reputation in the local business community, access to resources and experience to lead your country to make his / her home. In smaller countries, be sure to also check his / her political influence and the history of politics and business as they are often intertwined

4. Do your duty to country. In some countries there may be fees or regulations that may inhibit your success. Be aware of the fact that differences between countries can be significant. Do not fall into the trap of referring to the growth in general (eg "Asia"), since the neighboring countries within a geographic region can vary greatly. The bottom line: Learn and know as much as possible in any foreign country you intend to go before putting on your list expansion.

5. Do you have a support structure? Will your supply chain logistics at home support foreign expansion or need alternative sources? Your financial department created to manage foreign currency transactions and conversions? And if anyone in the world decides to call in the middle of the night you have someone available to answer the call? Your IT department ready to deal with operational information systems foreigners?

6. Have a replicable operating? In the case of international expansion from the coast, it is important to realize that the cost structure is likely to vary significantly. The supply costs, labor costs, building costs, seasonality can pose significant obstacles to your success. Make sure you develop a business model that is simple with the main components that are clearly identified and evaluated the existing model.

7. Do not rush! Plan your growth by spreading risk with a balanced portfolio approach to the country. Make this like spreading risk when investing in the stock market. Otherwise, generating your growth opportunistically rather than strategically can result in inconsistent and poor communication, lack of field support, general expenses skyrocketing, dilution of the brand and even lawsuits. Trying to manage a process that is 4,000 miles away in a foreign judicial system can not only cost you to sleep, but also represent a serious financial danger.

8. Do not expect a stroke of luck during the night. Growing internationally is a situation of continuous learning. Your company will experience an entirely new challenges, questions and uncertainties. There will be setbacks. Most companies, even the most successful here at home, the loss of experience in their first year of international growth. Your approach to international development with a five-year plan for business success.

The international expansion may be an interesting and profitable business proposal. When carefully and strategically planned and executed, an international business unit to add value to your global business. Also, if your business is based in the U.S. then your international business unit can cushion a falling dollar to the U.S. with favorable exchange rates to fall to the bottom-line .......