All posts tagged: Business Growth

Expanding overseas: should go it alone or use an agent or distributor.

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Today we will examine the pros and cons of use of an agent or a distributor when expanding overseas compared to using your own sales force. I will focus on working with a partner in our target market but consider entering the market with a company from your home country.  If you know of a company with complementary products, consider forming a Joint Venture to enter the country together. Much of your research will apply to your potential JV partner. You may even have identified that you will have a higher degree of success if you bring a complete package to the marketplace. But you need to assess their financial resources, the robustness of their business, and the capability of their people before agreeing to a Joint Venture. More importantly, does their enthusiasm for the project match yours? Remember, there will be setbacks, and troubles lie ahead unless their commitment is as strong as yours. For marketing your products or services, there are three common approaches: What is the difference between a distributor and an …

Overseas expansion How to find the best target country

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This is the second post on the topic of finding the ideal target country for your business expansion Another criterion in your market assessment is what is the competition like? There is likely to be local competition and probably international competition that have entered the market before you. Find out as much as you can about their products or services, pricing, quality, distribution methods. Is there national and regional competition? How are they perceived? What is their after sales service? A SWOT, Strengths, Weaknesses, Opportunity Threats analysis could be helpful in assessing the potential competition. You should consider the Macro Economic climate. We have talked about GDP growth but extend this to look at per capita income, demographics. Does the country have a young growing demographic? In many African countries more than 40% of the population is under 15 years of age. Niger’s under 15-year-olds represent half of the country’s population. The country with the lowest under 15 years population? Singapore at 12.3%. Look at the trend of the working population size. China’s working population …

Expanding Overseas: Which Country is right for your business?

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Having decided you are ready to expand internationally, how do you decide where to target? Which country or countries is the best fit for your business? According to the UN there are 195 countries in the world. That’s a lot of potential countries. Some will not be open to you, if you are a US based company, you will not be allowed to do business in some countries, such as Iran and North Korea for example. Some countries prohibit foreign companies for operating in certain sectors, military and essential infrastructure are common areas for restrictions. There can be religious restrictions, if you market alcohol you will not be welcome in Brunei. But even with these legal, governmental, and religious restrictions there will still be many to choose from. So how do you select the countries that are right for you? Proximity One criterion I feel is important and one that is often overlooked is proximity. There is a huge difference operating in a country that is a two hour plane ride away to one that …

Are you thinking of expanding overseas? Week 2 Is it right for you?

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Is my company ready to expand overseas? Is it right for me? Taking your company overseas Taking your company’s products or services overseas is an exciting prospect, the potential for a larger customer base, the opportunity to enter faster growing markets, maybe less mature markets where you can ride the tide of expansion. There is also a certain cache in being an international business but with opportunity comes challenge. The international journey can be treacherous with unexpected setbacks that need to be overcome. Even before you embark on the adventure you must assess whether your company is ready to operate overseas. And are you personally suited to doing business abroad? The first question is whether you have the financial reserves required to support your overseas business during its startup phase. This will cost more than you expect and take longer than you plan. This is based on my own personal experience in entering foreign markets. At this stage in the process, you do not know what you do not know. There will always be surprises. …

Are you thinking about expanding overseas: Week 1

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Thinking about expanding overseas? What you need to know. In this 13-part series I am going to explore what you need to know if you are considering taking your business overseas. Why might you consider expanding overseas? Maybe you have outgrown your home market. Some markets are relatively small, take Singapore, a vibrant economy, but still less than 6 million people. There is limit to how big you can be serving a relatively small population. I believe Singapore ranks 36 on the list of GDP by country.  But companies serving the largest economies move overseas so there must be other reasons. Clearly one reason is to increase sales of your business. By making yourself available to a broader range of customers the potential for growth exists. You may find there is less price competition in overseas markets. Beers seem to be particularly prone to this. By entering a new geography you may be able to sell to early adopters at a price premium. The lure of higher profits can be a driver, you would not …

Bring your breakthrough ideas to life. Learn from successful innovators

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In 2003 the Indian environmental researcher Narayana Peesapaty spotted an alarming trend: Groundwater levels in the region of Hyderabad were falling precipitously. He examined rainfall records but found nothing to explain the drop. Looking deeper, he discovered that the culprit was a change in agricultural practices. Many area farmers had abandoned millet—a traditional crop increasingly regarded as “the poor man’s food”—in favor of rice, a thirsty crop that requires 60 times as much water to grow. And because they had access to heavily subsidized electricity, the farmers were continuously pumping water into their fields. Peesapaty tried to influence agricultural policies by documenting the problem in government reports, to no avail. So, he looked instead for ways to boost demand for millet. He hit on the idea of turning it into “edible cutlery”—a solution that could attack not just the groundwater deficit but also the scourge of plastic waste. Peesapaty quit his job to pursue the project. A decade later, after a video he posted about the cutlery went viral, orders began pouring in. Two crowdfunding …

10 things you need to consider before you launch your second career.

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Thinking about launching a second career as a consultant, coach or content creator? It’s time to grab a notebook and pen or pencil and start jotting down the thoughts that are going through your mind about your new business venture. I do strongly suggest that you do physically write down your ideas rather than typing them on an electronic device. Research has shown that the act of writing by hand leads to better retention of ideas. And if you are like me I love a high quality note book combined with a fountain pen. There is something deeply satisfying about liquid ink gliding over smooth paper. But then I know I am a bit of a throw back.   Consult your spouse, partner, or significant other. You may be planning a second career but your partner maybe dreaming of lazy days at the beach, lake or even home. Take the time to discuss your plans and reach an agreement between the two of you of what is going to work. As a generation we are …

Affiliate Marketing

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Following the various ideas we have covered in earlier episodes you may have been able to build a substantial following. Now is the time to consider affiliate marketing as a low-cost option to generating income.  This is particularly attractive if you do not yet have a product to sell. What is affiliate marketing? It is an agreement where you agree to promote a product or service in return for a share in the income generated from your lead. If effect it is a fancy term for the historical, but still relevant, finder’s fee. The most widely known affiliate program is the Amazon associate program where if someone clicks on your link you earn a commission on anything they buy in the next 24 hours, with some caveats. It is easy to set up your associate status, I did it in a few minutes. But there are a few things you should know, and I will share them in my new blog The Geriatric Entrepreneur launching to tie in the start of season 9 on IBGR …

Lower cost options – Help all your followers.

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You can cater to the rich, and I’ll take the rest; the good Lord made more of them. Kemmons Wilson founder Holiday Inn Not everyone can afford to spend a couple of thousands of dollars for a course. And it is likely that many of your followers fall into that category. They have been devouring your free content and would love to buy something from you. But $2000? That’s way beyond their budget. If you have built up a decent following it is possible to generate an attractive income from a $100 product or even a $10 product. Jason Van Orden of Internet Business Mastery thinks of these varied product offerings as ascension ladder. He says it is foolish to only think of selling big ticket items. Instead, you must think about customer lifetime value. A customer spending $25 per month over five years is worth $1,500. And done right your marginal cost of serving this customer can be near zero. That $1,500 is pure profit. And the folks who do buy your big-ticket items. …