How to make most of going overseas

Oct 22 2009 By Andrew Mernin, The Journal

INTERNATIONAL expansion continues to reap rewards for businesses - and although the process of expanding may seem daunting, most find it a profitable experience, and that it has a positive impact on the long-term stability of their company.

Domestic businesses can take several lessons from this report about going global, based on the experiences of those who have gone before.

Here are 10 top tips from trade experts at HSBC to help you in your overseas mission:

Benefits can outweigh costs – with the right advice and information, the process of going international can be less costly and more profitable for the business than may initially seem the case.

Take advantage of the current climate – although the economic crisis has presented challenges for many businesses in the UK, most international traders believe the UK is well positioned to take advantage of benefits of international trade.

Conduct research and ground work – sufficient research and consultation prior to going international can ease the process and reduce the risk of unexpected costs or delays.

Use organisations that are there to help – seeking advice/ assistance from trade bodies or banks can improve basic knowledge of a new market and smooth the process of expansion.

Network – invest in time to meet with current traders to learn from their experience and network on the ground to find and recruit local representatives.

Engage representatives on the ground – the assistance of an individual or body that has experience in expanding into international markets can provide valuable insight for first timers.

Invest time in developing relationships – relationships are essential to successful business abroad, and can even soothe relations when contracts fail. Significant face-to-face time should be invested to building and maintaining relationships.

Have perspective on the challenges – some challenges may seem more important than they are (such as language barriers) and others may become an issue down the track, such as managing finances on an ongoing basis.

Train staff – if possible management and staff should undergo training in international business, to ensure adequate knowledge and preparation.

Seek guidance on trade from a variety of sources – the bank, trading bodies, experienced businesses and locals. This level of preparation can put a new international trader in good stead for successful operations abroad, regardless of the intended location.