4 Steps to Take to Expand Your Business Internationally—And How Technology Can Help
I love talking to small and midsize businesses (SMBs) who are considering expanding overseas. Whether they want to reach new customers, diversify into new markets, or tap into international talent, going global can be a transformative growth opportunity.
But venturing into international markets can also present new challenges. You can find yourself navigating cultural nuances and international regulations, as well as serving different customers. Doing this well requires tailored strategies and approaches that resonate with local preferences and mitigate risks.
The great news is that technology is opening doors for international expansion to more SMBs. If you’re thinking about heading overseas, here are four steps to take before you do so, and four technology tools that can help you succeed.
Is your business ready to expand internationally?
Before taking on the world, it’s essential to understand whether your business is ready and conditions are right.
Prior to beginning an international expansion, look inward to evaluate your current position in the domestic market. Has your growth rate plateaued? Have you reached significant market penetration? Have you exhausted your search for the right talent at home? If you've reached a saturation point domestically, international expansion could be a logical next step.
I also recommend leaders speak to their accountants and financial advisors first. Accountants are critical partners for SMBs, with deep knowledge of the strengths and weaknesses of your business. In seeking advice, articulate your long-term business objectives and your vision for serving customers, and be clear-eyed about the level of risk you can assume.
If your analysis and input from trusted advisors suggests it’s time to expand, the next step is a deep-dive into the economic, legal, and regulatory environment of your target market. Is there demand for your products/services in the target market, and what do your prospective customers say when you speak to them? What competition exists, and how will your business value proposition stand up? Do opportunities exist to partner with local businesses to share risk, and tap into established local market knowledge or distribution networks? Is your business compliant with local regulations? Economic indicators like GDP growth, exchange rates, and consumer spending patterns should be carefully evaluated.
Every business will have unique assessments, goals, strengths, and risk thresholds when it comes to expanding internationally. But there is one common factor that every SMB can leverage to get their business ready for this next step: that is, technology. Before you make the leap to expand internationally, here are some steps you'll need to take, and how the right technology can help.
Before expanding internationally...
1. Understand your target market
Technology can be a powerful tool to help you research and plan for new markets. Social listening platforms can provide a deeper understanding of customer preferences and emerging trends in real-time. Market research automation tools can streamline the process of gathering data on demographics, buying habits, and pain points through targeted surveys of potential customers overseas.
Technology can help you strengthen your digital presence. Optimizing your website for international keywords can help you attract organic traffic from your target markets. Machine translation tools can also help bridge the language gap by translating marketing materials, and customer support content.
Finally, U.S. business associations operate in major markets around the world. Connecting virtually with these organizations before you enter the market is always a good idea.
2. Automate your finances
Operating internationally can be complex, but investing in automation and AI can help you manage your finances as you expand, and help you avoid operational roadblocks along the way.
Financial automation tools optimize and provide real-time visibility into cash flow, irrespective of where transactions occur, and ensure international payments flow smoothly, quickly, and securely. Since moving money internationally can be costly, choosing a trusted partner to help streamline and facilitate international payments with speed and efficiency is important.
Automating finances also allows your business to use different payment choices, like ACH and credit cards, to reduce international payment transaction times from hours to minutes.
Beyond payments, integrated financial operations platforms can give you essential data and insights into your business, to help you make better, faster, and more strategic decisions. By analyzing vast datasets using AI, these tools can identify trends in your business finances, and help you forecast and optimize resource allocation strategies. This is essential to making informed decisions, mitigating risks, and seizing opportunities in the global marketplace.
3. Support your customers
Physical distance shouldn't create a customer service gap. AI-powered chat can help bridge this divide by ensuring a seamless experience for your customers.
Chat functionality can provide 24/7 support, address customer needs immediately and reduce wait times. This can be a game-changer for SMBs with limited staff. AI chat can also serve as triage. By analyzing conversations, chat tools can categorize inquiries and direct them to the best resource, whether it’s a live agent or a self-service portal.
It’s important that AI doesn’t replace human interaction. Complex issues or frustrated customers still require a human touch. A hybrid approach is ideal, with AI chat handling routine inquiries and routing trickier ones to your customer service team.
4. Build your supply chain
Establishing a reliable and cost-effective supply chain might seem complicated in a global market, but technology can also help you here. Cloud-based supply chain management (SCM) platforms offer features that allow you to optimize inventory levels, track shipments in real-time, and facilitate collaboration with suppliers across borders. This helps lead to timely product delivery and greater customer satisfaction.
Data-driven inventory management is another key aspect of building an efficient global supply chain. AI-powered analytics tools within SCM systems can predict demand fluctuations based on historical data and regional trends. Using these tools can help you optimize inventory levels across various locations, minimize the risk of stockouts and overstocking, and ultimately improve your operational efficiency.
Unlocking global potential with the right tech
Going global isn’t easy, but SMBs now have more tools to tap into new markets and reach new customers and talent. As a champion of SMBs, I’m excited to see the ways these businesses are leveraging technology to win.
About the Author
Post by: Sofya Pogreb
As the chief operating officer of BILL, Sofya brings more than 20 years of experience in operational roles at financial technology companies. Before joining BILL, Sofya was the COO of NEXT Insurance, where she led insurance, data and operations functions serving small and midsize businesses across the country. Sofya has also served as COO at TrueAccord, where she built and led the company’s operations and analytics functions. Sofya holds a Masters of Computer Science from Massachusetts Institute of Technology and a Bachelor of Finance from the MIT Sloan School of Management.
Company: BILL
Website: www.bill.com
