Factors to consider before venturing into global markets

Entrepreneurship-and-Communication-Skills-notes
  1. Define your business plan for accessing global

An international business plan is important in order to define your company’s present status and internal goals and commitment, but it’s also necessary if you plan to measure your results.

  1. Conduct market research to identify your prime target markets.

You want to find out where in the world your product will be in greatest demand. Market research is a powerful tool for exploring and identifying the fastest-growing, most penetrable market for your product

  1. Prepare your product for

You should expect to adapt your product to some degree for sale outside your domestic markets before you make your first sale. Packaging plays a vital role in enabling international connections. Make yours the best in its class, and you’ll be able to sell it anywhere in the world.

  1. Consumer habits

Consumer habits are influenced many things. Getting to know your market better will give you further insight as to why people have the habits they do.

There are often very logical reasons, difficult and even impossible to

understand if you are looking in from a different cultural standpoint.

  1. Language

There are so many ways misunderstanding can come into play with language. It is best to concentrate on developing a dialogue and a relationship with people in your target market. This will give you the feedback to ensure the language you are using is suited to your market.

  1. Trade Regulations

Governmental regulations can enhance or detract from the ease of doing business with a given origin. For years. there were quota restrictions with importing textile goods from China. This restriction was removed in January 2005, leaving China trending toward sourcing up to 50 percent of the world market share of textiles. Before any sourcing decision is made, it is imperative that all trade incentives or restrictions are evaluated carefully. It is also essential to be familiar with documentation requirements for U.S. customs clearance. There are many government-sponsored publications, brokers or consulting organizations available to help educate an importer in the legal requirements of international trade.

  1. Location

The proximity of a country may make it a more attractive source — case in point, Canada. Canada is the United States‘ largest trading partner. In the same vein, Mexico is the second-largest importer of

U.S. goods, and third as a source of imports to the U.S. behind only Canada and China. The proximity leads to benefits such as doing business in the same, or close, time zones. In addition, common cultural differences and similarities, including language, are known, as many of the populations in the three North American countries have their origins or families in the neighboring countries. The North American Free Trade Agreement also has done a lot to ease restrictions on trade between the countries.

  1. Political conditions

All exchange rates are susceptible to political instability and anticipations about the new ruling party. Political upheaval and instability can have a negative impact on a nation’s economy which trickles down to each individual enterprise in that country. This is an important factor before venturing into global markets



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