How to grow your reach online and overseas
Today’s small businesses have unprecedented opportunities to expand their reach into new territories that stretch across the globe.
If you’re a small business owner who is already well-positioned on home soil, you might want to drive forward your interests overseas. Once you’ve established there is a demand for your products or services, expansion is achievable with tailored strategies that showcase an established brand and a targeted marketing campaign.
We’ll look at how to unlock the door towards international success by looking at everything from identifying consumers, understanding local taxes, and teaming up with the right partner companies.
Assess the local market
Before making your international move, place yourself in a good position of understanding the benefits of growing your business abroad. According to HSBC’s second ‘Going Global for Growth’ report, the desire to trade internationally continues to entice UK businesses, while 87% of those already trading internationally intend to expand further within the next financial year.
One major reason for expanding to new shores is to increase your productivity and profits. The global marketplace offers larger markets, while the resultant increase in demand for products and services prompts the need to continually improve, innovate and remain competitive.
You’ll need to research and identify if a potential market exists in that country and whether it is feasible to seek out openings that will fit with your services, products, and scaling-up goals. To size up the market potential, analyse consumer behaviour and preferences in target countries to ensure your products and services will meet local needs.
Assess the demand by generating online market surveys and analysing competitor performance. The data you collate from surveys, focus groups, or via market research firms on the ground will give you a useful insight into the local market. This information can also be invaluable in shaping your entry strategy and flag up if you need to adapt anything to meet local or cross-cultural preferences.
Understand the local tax and legal requirements
Navigating the complex legal and tax regulations in a foreign country can be challenging when you’re growing business operations on unfamiliar territory. Most importantly, familiarise yourself with the local tax rules and business regulations. For instance, if you’re setting up a business in Gibraltar - a popular location for UK businesses - your avenues for entry are straightforward. This is true whether you’re a sole trader, a limited company, or obtaining a business licence to operate in the country.
In addition, you’ll also need to understand international free trade agreements and any regulations that may affect your business operations or expansion plans overseas. With so much to think about and red tape to break through, you might prefer to consult local legal and tax experts in the country you’re planning to set up an office in, to ensure compliance with all relevant laws and regulations.
Generally speaking, in most European destinations, you can register your business name at Companies House. However, it’s crucial to find out about local business registration requirements in the country you’re working in as they may differ significantly from those in the UK. Likewise, research intellectual property protection in target countries to safeguard your trademarks, patents, and copyrights. Explore tax implications, including double taxation treaties between the UK and target countries, as this can help you to optimise your tax strategy.
Define online channels and your customer base
Following an overseas market analysis and with a grasp of business regulations, you’ll want to identify and firm up your customer base. This will help you understand which online platforms you’ll want to use to create an effective marketing strategy. To define your target market overseas, consider who is likely to buy your products or services based on factors such as regional areas, demographics, educational interests, and average incomes.
You can advertise your brand and build up a bank of prospective customers across multiple online channels on the back of a professional, SEO-optimised website with consistent brand messaging. While your brand might be doing well at home, check if the brand identity will work well in another country and with respect to its culture.
There’s no point having a high-ranking website and buzzing social media platforms if your brand doesn’t translate well in the region you’re entering. The ultimate success is when consumers make that instant association between your brand and your product/service.
Build valuable networks and contacts
Once you are better acquainted with the local market in a new country, do your research to work out the local competitors and potential partners to appraise the best strategy to infiltrate the market and any potential collaboration opportunities. At this point, you’ll want to understand cultural nuances that may affect your business, such as local customs, holidays, and consumer expectations.
Once you have a better feel for the market, networking to establish new business contacts and ensure your brand, services, and products are gaining visibility in that location becomes a priority. As well as planning an event to promote your business interests to the right audience, make a start at attending any relatable trade shows and industry conferences to meet potential partners, clients, and suppliers.
Likewise, it’s beneficial to join local business associations and chambers of commerce. Being a member of a network will help your business to thrive as the number of contacts you secure grows. You can also learn from other members, identify competing companies or those you want to partner with, and be the first to know about any events that might support your interests at home or abroad.
Partnering with local businesses or distributors to accelerate your market entry and develop existing relationships. Engage with UK business groups abroad and support services offered by the Department for International Trade to access valuable resources and connections. Building a strong network in your new market can provide invaluable support, insights, and opportunities as you establish and grow your business.
Have a decisive digital plan
Having a strong digital presence in a country you’re entering for the first time can significantly extend your reach and provide a cost-effective way to build up your brand’s visibility. Localise your website for target markets, including translation, currency display, and preferred payment methods. You might also want to implement international SEO strategies to improve your visibility in local search results.
Utilise social media platforms popular in your target countries to engage with potential customers and build brand awareness. Consider e-commerce platforms that facilitate international sales, handling currency conversion and cross-border shipping. Explore digital marketing strategies tailored to local preferences, such as popular messaging apps or region-specific social media platforms.
Establish a physical presence
If you’re planning to set up a physical office abroad in line with all your online channels, look at optimal locations. Consider establishing a smaller space or shared office to minimise initial costs and provide flexibility as you grow. Ensure your office meets local health and safety standards to maintain compliance and protect your employees.
Although you might be familiar with international shipping options and costs, stay vigilant about finding the most efficient and cost-effective solutions for doing business abroad and explore potential partnerships with local suppliers to reduce costs, improve efficiency, and potentially gain insights into local market dynamics.
By carefully considering these factors, UK small businesses can strategically expand their reach overseas, tapping into new markets and opportunities for growth. Remember, successful international expansion often requires patience, flexibility, and a willingness to learn and adapt to new business environments.
