SHAKERS & MOVERS n PRODUCTIVITY
3. What changes do you need to make to your product, service, brand, or sales strategy? If the primary color of your product is red, and you’ re going into certain cultures overseas, that may be offensive. If you have a modern, cutting edge look and feel, and you’ re entering a market where stability, old-guard and tried-and-true wins the day, you may need to adapt. If you’ re a direct sales company, and direct selling is illegal in China, you need to adapt your sales and distribution methodology to enter that market.
When I was CEO of the Hoverboard Company, we had to change the look and feel of the boxes the Hoverboard came in based on the retailer that was selling them. Brookstone wanted a high-end look and feel, while Toys R’ Us wanted a playful look. These changes cost money. They change your costs based on quantities ordered, shipping methods, and tariffs, duties, and import / export taxes.
4. Choose a market based on opportunity and budget. It will cost more than you think. Hiring costs are vastly different around the world and has sunk more than one company. When I first expanded a technology company into Europe, it was eye-opening that their employment laws were so vastly different from the United States. When you hire someone, you’ re essentially hiring them for life. It can take 1-2 years to let someone go at best. For a small business, this can be disastrous. I strongly recommend partnering, testing, and using local agencies or international staffing firms prior to actually hiring your first international employee.
One of the safest ways to expand into a new market from an opportunity basis is to go where you’ ve been selected as opposed to you selecting it. It’ s where you already have existing customers who love you. You already have a following there. You know that your brand and products resonate with that culture.
On budget, the fully-loaded costs of international expansion are mindnumbing. There are numerous resources I would be happy to share with you to help you minimize and plan for these expenses by country. You can email me at rr2 @ theprompting. com to schedule that conversation.
5. Do you have the internal fortitude and stamina to go the distance? Opening new markets requires a thousand more decisions than you ever thought it would, and that’ s for domestic markets. International markets will make your head spin. How committed are you? Can your marriage handle what expanding will require? Does your family and children understand the commitment you’ re about to make? Have these conversations up front because no business and no amount of money is more important than your marriage and family.
6. Validate and test before entering the market. How many customers do you already have there? What interest has been indicated? Start small. Spend some marketing dollars and fulfill even if it doesn’ t fit your cost structure. I was advising a local backpack company that will be one of the hottest backto-school products for 2018. Their fulfillment costs will barely break even and will likely cost them more money than they will make. But they will have successfully validated and tested some new markets. It’ s a very small price to pay to learn what quantities need to be manufactured and shipped for the various products and target markets.
7. What strategic levers can you use? Should you joint venture, partner, use resellers, or have a physical office and staff? Partnering in whatever form that makes a lot of sense for the small business entering international markets. You may instantly have a sales force of 50 people by doing that, and it requires minimal support staff on your side to train, educate, and provide incentives for sales.
Dr. Rollan Roberts II is the former CEO of the Hoverboard Company, and is CEO of The Prompting, Inc., a crisis and revenue growth organization for individuals solving the # 1 productivity killer in business— depression and anxiety. He is one of the“ Top 100 Most Influential Floridians” and was a keynote speaker at Harvard University. For a free consultation with Dr. Roberts, text 407.820.5820, or visit RollanRoberts. com.
COURTESY OF DR. ROLLAN ROBERTS II
44 IBA Success Magazine n VOL 4, Issue 1