4 Cost-Effective Tips for Breaking into New Markets

January 16, 2020

Expanding to a foreign new market is a life-changing venture for any entrepreneur so the entire process needs to tended with care. You need to set clear goals, figure out your budgetary allocations, and perform extensive research regarding the new market.

Truth be told, setting sail to a foreign market is not for those who are close-fisted but the trick is in making prudent decisions about the areas in which you can save some money without it hurting any vital processes. With that in mind, here are some tips to help you assess when a more economical choice pays off and when it doesn’t.

Network your way to a foreign market

When entering a new market, any entrepreneur would thread more confidently knowing that they have made some contacts there beforehand. So, prior to initiating the venture, try to gather as many contacts as possible since networking will ensure an easier transition into the new territory. This being said, each relationship that you forge, regardless if it is a client, partner or supplier, needs to be nurtured even more than those you made on the domestic market.

Maintaining long-term business relationships will not only get you supreme quality goods from suppliers but also discounts which are among the most favorite ways to save money. A positive reputation is what will earn you the respect of current and prospective partners and ensure you strike good deals. So, networking in this sense will not cost you money but it can bring you a lot which makes it a strategy worth implementing.

Know your legal rights and obligations

We all know that one person who tries to find different ways to avoid paying certain bills or reduce taxes and then acts surprised when the due day still comes. It is a similar thing in business – some taxes you just have to pay unless you want to risk the entire venture or even your core business. That being said, each country has its own laws and regulation for foreigner investors so you should put some research into that.

For instance, in Indonesia, a foreigner cannot own land directly and if you decide to turn a blind eye to the law and put your trust in some unverified domestic intermediary, you might lose both your investment and your big break. This is why you need to be vigilant and collaborate only with reputable investment companies, such as Invest Islands that operates successfully in Indonesia, that have the necessary knowledge and experience to guide you through the rights and obligation of a foreign investor.

Take the language seriously

While business meetings with new clients and business associates can be conducted in English, your business operations should be in accordance with the foreign market you are targeting and that includes the language. Regardless of whether the locals know English, with a website in their native language, you will help them navigate and understand the content easily, which is something your foreign target audience will appreciate.

However, this also means that you need to approach this task with care and even though Google Translate seems like the least expensive solution, you will lose much more with that kind of an unprofessional translation. So, instead of having a high bounce rate due to visitors being repelled by the poorly translated content, it’s best to hire language experts who will not only translate correctly but also localize the content so it integrates naturally into the foreign culture you are targeting. The bottom line is that by skimping on professional translators, you actually risk losing money.

Don’t comprise on quality

When it comes to finding a budget for a venture, many businesses embrace cutting costs by opting for a cheaper supplier. This strategy works in a lot of cases but unfortunately, a less expensive supplier sometimes means goods of lesser quality. This naturally reflects on the quality of your end product and while at times the difference is minimal, in others it can lead to a significant decrease in your products’ quality which is something to be avoided.

Also, when it comes to the quality of your service, build your business from the start with the knowledge it will grow – the standard of the service your customers get should never be lowered. This means that you need to plan an expansion of your workforce in advance, all to ensure the quality of your service is not jeopardized. If you wish to maintain the product quality and be able to hire new employees, it is crucial to prepare your budget on time.

Final thoughts

When breaking into a foreign market, investing the highest amount of money into everything is not the optimal solution but neither is the lowest amount. Assessing financial risks and planning the budgetary allocations are integral parts of preparation for a foreign venture and they often mean you need to research, analyze, and combine elements to strike the balance between expenditure and (future) revenue. However, if you do those necessary preparations, you will build strong foundations on which you can continue to grow your business.