international Archives - Canadian Small Business Women

Globalization has been the buzzword in the business community for many years. With technology making our world a smaller place, businesses big and small seem eager to be a part of the “going global” trend. But just what does expanding internationally mean and how much of an investment does it require? Many entrepreneurs are unaware of what an international expansion entails, which is the reason why many of them aren’t successful.

Here are five mistakes entrepreneurs make when going global:

Not spending enough time exploring potential markets

The decision to expand your business internationally is a huge step. Many entrepreneurs seem to get too caught up in the allure of going global that they often forget to evaluate the compatibility of their specific business in their market of choice. It’s important to allow adequate time for research on potential markets. Spend time exploring and getting to know potential markets that fit your specific business. Expanding internationally is not about which countries you’d like to personally visit; it’s about where your business can grow and thrive.

Underestimating costs and break-even time

Expansions are expensive! Don’t be fooled by the common misconception that outsourcing labour drastically lowers your operating costs – this may be true in the long run but breaking in to a new market will significantly increase your costs in the first few years. Adequate research about your market of choice and what kind of fees, licenses and legal documents are required is essentials for a successful expansion. Expansions take time to be profitable so it’s best to be conservative when forecasting break-even time, don’t expect and instant return on your investment.

Discounting the importance of cultural differences

Sadly soft skills such as business etiquette are often overlooked when it comes to international expansions; however they play a significant role in the success of your business. In order to enter a new international market you need to be able to build contacts and make the right connections. Networking internationally can be tricky especially when customs and traditions vary among cultures. It’s important to fully understand the differences between your own culture and the culture in your market of choice. For example is the country you’re looking to expand in to a collectivist or individualist culture – do they focus on the Me or on the We? If you can’t form a rapport and network effectively with people from different cultures; expanding you business internationally will be a challenge.

A lack of product flexibility

Sometimes you may need to change your product to better suit a new market. Entrepreneurs need to be aware that the look of their product will need to evolve to better appeal to its potential buyers. A great example of this is Coca Cola – everyone the world over knows about the soft drink, but a bottle of Coke doesn’t look the same in every country – it’s evolved to suit the needs of new markets. In North America we have large 2L bottles of Coke but some countries only sell 1.5L bottles of Coke- the reason? Simple – their fridges are smaller. If you want to be successful internationally you need to be able to adapt your product to suit your new market.

Not changing your marketing strategy

What works well in one country may not work well in another, and this is especially true for marketing strategies. Some countries respond very well to social media marketing, while others respond better to direct selling. Effective marketing is extremely important when introducing a new product. Learn from local players and adapt your marketing strategy to suit the new market. Don’t get stuck in a cookie cutter strategy be open to new ideas and try a few different strategies until you find the one that works best for your particular product.

Praveeni Perera is an experienced entrepreneur having co-founded a training and consulting company catering to clients around the world. Her area of expertise is international expansions. You can connect with her via Twitter or LinkedIn

As technology makes our world a smaller place many businesses big and small are engaging in commerce across international borders. The definition of workplace has now expanded to include not just new cities or regions but the whole world, we are indeed witnessing life in the global workplace.

Conducting business on an international level isn’t always easy as social norms, greetings and introductions and even time restraints differ across cultures. Here are my tips for success in the global workplace.

1. Have an open mind
Being open minded makes the transition from national to international easier as you will be more willing to learn about new countries, their customs, and the way they do business. Things may not always go as planned and tasks that used to be simple before may become more complicated and tedious. Obstacles be they cultural, financial or logistical will arise and you need to be able to think outside the box and get creative.

2. Welcome and embrace change
Making changes to the way you do business, approach projects, and even shake hands is inevitable when working in a global workplace. Change is never easy but being ready for the change and approaching it with a positive attitude certainly makes the transition run smoother. Don’t shy away or be afraid of changing the way you do business, different markets demand different approaches. Chances are you will have a completely different business model or approach for each new market you enter. Think of each new culture, country, or market as a creative outlet, an opportunity to do your job in the different way. The result or product is the same but the method is different.

3. Do your prep work
Preparation and research are essential when working on a global level. You need to be aware of the cultural and social norms of the countries you are doing business in. There are many sources online that allow you do conduct a cultural comparison between countries. It’s a good idea to compare the country you live in with the countries you wish to enter or are looking to do business with. The World Factbook is an online tool that provides comprehensive and detailed information about countries, however it focuses more on general information rather than cultural comparisons. To compare cultural differences, we recommend using the TheHofstede Center website as it allows you to compare and contrast cultures using 5 detailed dimensions. In addition to cultural research you should attempt to learn a few basic words in the native language such as hello, thank you, and please.

4. Seek out local mentors
Locals are the best guides when it comes to learning about a new culture and market. Seeking out a local professional who can help you learn about the business culture in your prospective market is a good idea, as you will be able to get a first hand account of what corporate life is like. You can reach out to professionals in your field or similar fields through organizations advocating for trade between your home country and your perspective market. LinkedIn is also a good way of researching professionals in your field, however since these would be cold connections asking for mentorship is not recommended. You can also ask for guidance and information about perspective markets from their local embassies in your home base. Most embassies have trade commissioners that provide information on conducting business in their country.

For more informationand a hands on training in doing business on an international level check out our next workshop Success in the Global Workplace this June in Ottawa. Registration is now open!

Praveeni Perera is the CEO and co-founder of Professional Edge Consulting a corporate training company based in Ottawa offering training and coaching services to clients around the world. She can be reached via Website, Twitter, Facebook or her Blog.

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