7 Steps to Global Business
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Most businesses want to go global! Some businesses even believe that unless they tap
into the international marketplace they will wither and die. Reasons for going global range from
(a) all the major players are doing it, to (b) generating greater revenues (and hopefully profits),
to (c) exposure creating value-added opportunities. Before you plunge into the sometimes icy
waters of the world trading pool, I recommend the following 7 steps. Step 1) Determine why you must go global. The why's of business must always precede the how to's! Going global should not be a desire thing: it should be a destiny thing! If the rationale behind reaching out for global revenues is tied to the mission statement of your corporation, is part of the principles, visions and objectives of your company, it makes sense to pursue the next steps. If the real thrust for going global is, only, to tie your corporation to the prevailing trend, then, it makes no sense at all. The integrity behind going global is in the conviction that you can provide a product, service or idea whose international time has come. The first step, therefore, is an internal corporate soul search. Step 2) Determine where you want to launch first. 'Despite the best laid plans of mice and men,' (even women, it seems), going global can sap your corporate life blood and lead to bankruptcy. Your pilot launch (place you will position your service or product first) should be one in which you can maximize your opportunity. Does you corporation have an 'in', for example, in Chile or in Sri Lanka or in the Ukraine? |
Is there the will and the way to conduct
your commerce in your chosen country? Is there enough stability (politically, economically) to
let you follow through from initiation to consummation? Businesses should choose to sacrifice
themselves for the sake of the challenge. Your choice should not be to climb the mountain
because it's there, but because it is climbable without loss of life, limb or liberty. Step 3) Get all the relevant research you can on what infrastructure (cultural as well as economic and social) prevails in the region you've chosen to initially target. Libraries, Chambers of Commerce, Boards of Trade, trade commissioners' offices (at home and abroad), service organizations, trade associations and trading houses, professional groups (global attorneys, global accountants, global consultants) are all 'must contact' sources. The best, and sometimes cheapest, advice can come from those who have been there, done business successfully there, and know the in's and out's of dealing in your preferred global domain. Digest your information. Then ask, "Does it still look viable to deal there?" If it does, and ego should not prevent you from retreating to a better (for you) alternate locale, proceed to step 4. Step 4) Go there and 'kick the tires'; find out who you're dealing with on a first-hand basis. Don't go there with blinkers on--make you mind and emotions as bias-free as possible. If you don't feel comfortable with your initial impressions of your 'target' nation, back off and reconsider. Yes, it might 'grow on you' but can you afford the luxury of waiting and for how long. I add a cautionary note here. |
If you want to understand the culture, politics, and
economics of a 'locale' then go where the 'locals' are. If you only fraternize abroad with 'ex-
pats' or with 'foreigners' you'll return home with a muzzled impression of the region. Talk and Talk and mix both locals and foreigners mix with both locals and foreigners and develop a balanced perspective. If initial impressions are a 'go', proceed to step 5. Step 5) Conduct a professional survey in your target area testing the viability of your product/service launch. We all know there are surveys and there are surveys. Choose a professional, don't skimp on your survey . . . good preventive medicine. Your survey group should have global and local smarts and have a credible contact list and surveying credibility. Ask for references and check out track record and reputation. In other words, survey your surveyor. There is good reason for you to ask for tenders on a survey assignment. Step 6) If a careful and constructive analysis of your survey indicates 'go' then develop a strategic business and marketing plan and pay careful attention to your time frame and resource (human power) capabilities. Can you service what you start? Will your staff support this global adventure? Is the capital fuel your engine of global commerce needs sufficient? Develop best and worst case scenarios. Can you live with the worst case alternative? Step 7) If your audacious adventure into the global hemisphere has enjoyed only positive trajectory so far . . . stop a while, reconsider and get a trusted outside opinion. Let your outsider tell you, in blunt terms, based on knowledge of you and your company, whether you're playing with dynamite, or, using it to blast new trails to your future business! Norman K. Rebin |
