I think virtually every organization I have been part of has aspired to grow internationally whether they had a current footprint or no footprint all. There is little debate that we live and exist in a global world and economy. And as the domestic marketplace has become both more competitive and saturated looking across the pond sort of speak is a natural response. In the portion of my career where I actually had the opportunity to travel and be the point person for International growth, I would venture to say that for the most part I was in circumstances where there was little to no international footprint. I’ll start there though I believe many of my insights and learning are applicable to an existing business as well.
When discussing growth internationally I believe it’s important to distinguish what that really means. I’ve always been somewhat reluctant to tell people I’m an international sales expert if I were only doing business in North America (which includes Canada and Central America/Bahamas/etc. along with the USA). Doing business in Canada and Mexico is far differtent from doing business in Europe or Asia for example. Yes there are simlarities for certain, but the geography alone makes them much more difficult. My most simple advice to those just venturing into the international landscape is to start with Canada and Mexico and build from there. Quite simply, if your operating out of the United States, geography is your ally. I can get to Toronto or Mexico City quicker and more frequently than I can say China, or France. I once asked the current CEO of Walmart (Doug McMillon who was then heading up their international businesses) what I needed to do to be successful at Walmart outside of the USA. His response was simply, “master Mexico and Canada first, then scale to other countries.”
Wherever you are attempting to open shop go in understanding several initial things are required…a strategy, an investment, and most times a high degree of patience. Outside of our own backyard, there are cultural differences, language barriers, government requirements and regulations, logistical issues and hurdle, financial and product considerations that all need to be vetted and understood before investing dollar one. Far too many organizations miss the due diligence and jump in thinking they about to go to the moon. Rarely have I seen that happen.
Do your homework – Be willing to conduct the necessary market research (an outside firm or consultant may be required) so that you might understand the scope of the market opportunity, cultural barriers (does your product fit the consumers needs/wants), and government regulations (understand the tax codes; duty requirements; VAT; etc.) Assuming the opportunity outweights the financial investment then and only then can you move forward. The math matters!
Logistics – can you service the customer base in a manner that meets their requirements and expectations? This in my opinion is huge, if you can’t do this in a world class manner or at the very least better than anyone competing with you (domestic manufacturers and suppliers have an edge) then you business model is not sustainable.
Products – does your current product portfolio meet the consumers demands. For example, cotton is a much more readily used fiber in some European countries. If you products are poly/rayon dominant you may find it difficult to get immediate traction.
Goals and Strategy – my advice is simple. Be realistic. It’s possible that revenue and profit may not be at the corporations ideal threshold in year one or two. Rome wasn’t build in a day, but they were laying bricks. You have to have the stomach for seeing the strategy through with the understanding there will be hurdles.
Resources – this somewhat goes back to or at least compliments the research phase. Do you have the bandwidth to adequately cover the desire marketplace and geography? I’ve always been of the mindset that boots on the ground are far better than boots on an airplane. Translation, if you want to build partnerships it requires having someone who can service and add value to the customer base. Structure the international component to
Measure – Measure – Measure. Clearly defined and measurable goals are paramount to success. Be prepared to either course correct or fail fast. Investing in an international business if not done correctly can destroy a P&L quickly.
