More and more area businesses are utilizing the availability of communication and transportation technologies to expand their businesses to international markets.  These markets provide area companies with opportunities to increase sales, gain valuable global experience and lower production costs through economies of scale. 

Have you considered how to take some or all of your products into international markets?  Here are seven questions to consider as you contemplate increasing your business in the global arena: 

1. Are there product modifications required in order to make my product suitable to the targeted country?  Sometimes exporters don’t consider things like product size, color or packaging as things that may need to change in order for the product to meet the needs of customers abroad.  Remember that most countries now require instructions and package text to be translated into the local language.  Software products must contain a language selection feature to reach international markets.

2. What countries or regions of the world are most likely to have a need for and an ability to purchase my products?  Unless you have great financial and human resources, a linear approach to international sales is usually the best.  Pick the country or region that requires the least amount of education for your company.  This typically means choosing the country that is most similar to your current successful markets.

3. What are the financial implications of doing business in the targeted country?  Research the economic stability of the country.  Are there taxes or import tariffs that you should be aware of?  Consider their historic inflation rates, currency exchange rates and fluctuations, discretionary income rates and trends.

4. What are the language barriers in doing business in the targeted country?  Most nations have multiple languages (for example China has more than 800 languages throughout their territory) or dialects that can change the meaning of your communications from one region to another.  Many USA companies have made the mistake of not understanding the subtle regional dialect differences that can dramatically affect the ability to accurately communicate an effective message.  Much to their embarrassment, the US Milk Processor Board learned that their popular “Got Milk?” campaign, translated to Spanish speaking cultures, literally meant “Are you Lactating?”  Not exactly the message they were hoping to convey! J

5. What cultural considerations will be important to the acceptance of my product in the target country?  Religious, political, environmental, culinary, fashion and style sensibilities are all potential barriers to your product’s success.  Your company logo might be a symbol that has a completely different meaning outside the USA.  Some cultures automatically reject products from the West.  Advertising images may be offensive to other cultures.  Don’t assume that everyone is just like Americans – they absolutely are not.

6. Will there be regulatory issues to be aware of?  Many countries require that a local company be the one who imports the products, you may need to form a joint venture, strategic alliance or distribution relationship with a company in the target country in order to meet their requirements.  Some countries do not respect US patent laws; if your product is patented, be sure that you take precautions to protect your intellectual property.  There are many other import requirements that vary from country to country.  Do your homework.

7. What is the most effective way for me to penetrate the international market I’ve chosen?  Market penetration can typically be expedited by choosing a local partner (such as a distributor, dealer, or alliance company) who already has a relationship with the end-users you’re targeting in their country.  Be sure you’ve planned on how you will provide product support and service abroad.  Can you maintain your product and company reputation from a distance?

Launching your products internationally can be a wonderful way to take your company to a whole new level.  There are also many potential stumbling blocks that can trip up your efforts and cost a great deal of money.  The best way to go international is to travel to the targeted country and spend an extended amount of time there to learn the culture, language and business environment.  Talk with other trusted companies who have already found success exporting to the target country.  Utilize the local agencies that are there to help you – the Chamber of Commerce, State Department of Development and local Colleges and Universities may be excellent resources. 

Developing global markets isn’t quick, easy or inexpensive.  But the return on your investment will be an expanded appreciation of international cultures and business practices and new, seemingly limitless, sales opportunities.  If you build it … 

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