David Farca has recently been appointed to the advisory board of Job Aire Group, a prominent player in the Aerospace industry based in Arizona. Additionally, his company, International Business Group, has been selected as the exclusive representative for Datron World Communications and Cyberlux Corporation in Mexico, both renowned leaders in Defense and Security. Farca is also to assume the role of VP of Business Development for Latin America at Entira Capital. In the following article, David Farca of Arizona delves into the bold steps, calculated risks and dedication entrepreneurs must impart for orchestrating international expansion.
Taking a business global is anything but straightforward. However, those who've been there, done that, and got the profits to prove it say it's possible to grow a local company into a global empire with the right strategies and approach.
David Farca of Arizona explains that from market research to sales plans to establishing presence to monitoring, these are the most most vital steps to reach previously untapped customer bases and successfully turn small businesses into worldwide brands.
David Farca on Performing Market Research
Thorough market research is the
first step on the long road to globalization. Other professionals echo this statement, noting there's no point in employing an accountant or lawyer before knowing whether demand for the product/service exists in the new region.
David Farca says that companies should gather and analyze data relevant to them, which includes:
- Competitive insight
- Industry growth indicators
- Micro and macro-economic data
- Market size and segmentation
- Infrastructure
- Political factors
- Cultural environment
- Trends and forecasts
- Distribution trends
- Sales data
- Localization requirements
- Consumer data and buyer behavior
Unearthing information on the above for every desired expansion country lets business owners discover whether there's potential for a successful entry, avoiding bank-breaking mistakes in the short and long term.
Preparing a Go-To-Market Strategy
The next step is to prepare a Go-To-Market strategy, otherwise known as a GTM strategy, which gives the above-garnered information context and allows business owners to develop an action plan. According to
FSB, it's integral for international success.
David Farca explains that like initial business plans, GTM strategies should outline the:
- Target market No product is right for every market. Thus, clarifying target markets is key. Not only do companies need to know whether their service or product is attractive, but they also need to understand the market's accessibility to align their strategy and discover opportunities.
- Target customer Businesses need to know how their new market's customers behave, what their needs are, and who they are. Surveys, one-to-one interviews, and focus groups (all of which are conducted during market research) help understand these imperative elements.
- Product and value proposition David Farca says that this section of the GTM strategy defines the product/service, its main features, and its benefits. After that, it's about brand positioning (e.g., premium vs value).
- Pricing Price should reflect the market position and value proposition. Variables can be split into four, easy-to-remember Cs: company, customers, competition, and channels.
- Routes, channels, partners The route to market sets out the channel the product uses to reach target audiences. Selecting the perfect channels is crucial for market success. Leveraging the skills and experience of any agents, distributors, or other partners already in the local region is ideal.
Put simply, it's the blueprint for success in a company's globalization endeavor.
Tailoring Sales and Marketing Strategies
David Farca notes that depending on the differences in the previously untapped area, companies may need to drastically switch up their sales and marketing strategies. Easter and Western audiences may respond differently to certain types of advertising/promotions.
He also emphasizes the important of a multilingual website, which lets businesses' current websites available, more accessible, and increasing appealing to customers from distinct pats of the world. In today's fast-paced, digital environment, instant ease is essential for lasting engagement.
Securing Financing
David Farca of Arizona explains that a complex process involves expenses that companies are unlikely to have in their back pockets. Thus, securing financing (made easier with a well-constructed GTM strategy) is a must-do to enact the previously laid plans.
Lots of funding options exist (e.g., loans, investments, grants, etc.), but businesses must carefully evaluate the terms, repayment schedules, and interest rates to guarantee a good fit.
Establishing an International Presence
At this stage, businesses actually head into the market, establishing a presence in the new communities. This may mean setting up a physical retail outline or office, hiring staff from the area, and registering the business with the necessary authorities.
David Farca of Arizona says that having a presence in the community helps foster relationships, trust, and credibility with stakeholders, partners, and customers, simplifying the navigation of the all-new business environment.
Monitoring and Changing Strategies
Experts state the final stage is monitoring and changing strategies as required. As entrepreneurs can attest, international expansion is a dynamic procedure, so many companies must adapt their plans as they learn more about the local market and their newfound customers.
