If you’re the CEO of a quickly scaling company in the Asia-Pacific (APAC) region, you probably know quite a few secrets to business success. But if you’ve reached a point where it makes sense to set your sights on other countries, and consider a global strategy as your next growth strategy, where do you start? Let’s cover a few of the key takeaways.
Not all markets are created equal.
Some CEOs get really excited about the revenue and growth success they’ve enjoyed as an APAC-based company so far, and for good reason. But if your plans for putting down roots in another country are motivated by thinking you can replicate that success exactly, we’d suggest resetting your expectations. Yes, you can experience strong and wild growth in other markets. But every single region and every single market is going to be marked by its own specific distinctions.
If you’re looking at opening up a site somewhere in the United States, for example, don’t expect it to be a mirror image of your headquarters in Taiwan. Not only will the language, culture and physical premises be different, but your market fit will be, too. The products and messaging that stimulated your fast growth in Taiwan might not resonate as much with the people in the U.S., and their specific needs. In order to make sure you’re choosing the right location and the right approach to that location, we highly recommend investing in some solid market research and partnering with someone who has successfully navigated this challenge before.
Calculate all the cost implications.
There are some obvious costs involved with opening up operations in a new country or even on a new continent. But sometimes companies forget to account for some of the less overt costs, which can end up leaving them in a bind or eroding their profit margins before their new location is even functional. So, make sure you think through the full scope of the expenses of such a move, so you can properly plan.
Make sure your financial projections include costs like:
- Legal fees
- Regulatory Approvals
- Product localization
- Talent recruitment, onboarding, and training
- Marketing to a brand-new market
- Pricing (you might need to charge for your products or services differently in the new region that you had previously)
Local expertise is irreplaceable.
There are many aspects of a global expansion that any smart and savvy CEO could likely figure out along the way if you had to do so on your own. But there are also parts of the process that simply can’t be muscled through, knowledge that can’t be learned quickly and experience that can’t be simulated.
In order to make your new operations successful, you need to have guidance from someone who has executed on a global strategy before and has specific regional insight and experience to offer you. Conectys can be that trusted consultant with deep regional understanding of components like real estate, licensing, contracts and cultural norms to help you replicate success in the new market.
Contact us to learn more, or download our guidebook to better understand what it takes to successfully expand your APAC operations internationally.