A six steps method to start business in a foreign country

A six steps method to start business in a foreign country

Many companies, especially small and medium ones approach foreign markets without a method or any clear idea of the characteristics and the problems of the country they want to do business with.

Their “business adventures” in foreign countries, after investing a lot of money and effort, often end up in disappointment and frustration.

Approaching a new country, especially if it is located on the other side of the world and belongs to a totally different cultural tradition requires a correct method and an adequate preparation.

 

 

The correct approach includes the following steps: preliminary analysis, identifying the countries that offer more business opportunities, screening and selecting the most interesting countries, evaluating risks and opportunities and defining an action plan, making the decision, implementing the plan and monitoring the results.

 

  • Preliminary analysis

A key step in order to understand the company strengths and weaknesses, motivations, and risks related to the internationalization process.

 

  • Best Country selection

First selection of foreign countries where to start business on the basis of company’s objectives and a few general criteria.

The output of this step is a list of countries to be taken into account.

 

  • Entry marketing Strategy

In depth analysis of opportunities for each country.

The output is a business case including strategies in terms of products, sales channels, communication tools and an action plan.

 

  • Business visit

A unique opportunity to know the place and the business environment and start doing business.

 

  • Operational tools management

Many are the practical tools for internationalization: Incoterms, Negotiations, Terms of payment, Fiscal rules, Custom duties, Public funding and subsidies, foreign languages.

Knowing how to master these tools is important.

 

  • Implementation and monitoring

The action plan is implemented and the results are accurately monitored on the basis of a few significant KPI’s.

The first five steps, normally require about six months to be completed.

 

To know more about our 6 steps method to enter new markets contact our colleague Alberto Canepari.

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