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6 Tips on How to Expand Your Tech Startup Internationally

Sooner or later there comes a time in every startup’s journey to start preparing for growth. And especially considering the fact that penetrating the global market is now easier than ever, tech startups especially can seamlessly prepare for this change.

However, although reaching the international and even global market is easier than it ever was, the expansion will still require a lot of work and devotion. Namely, in order to reach an international market and ensure they’ve done so successfully, startup owners need to come up with a meticulous growth and expansion strategy. That way they can ensure no crucial detail is left unaccounted for and avoid any potential mistakes that could hinder their efforts.

Here are just some key aspects to keep in mind.

The importance of research

First and foremost, startups that are looking to expand internationally need to be prepared to conduct some in-depth research. This step is crucial as it will allow business owners to see if there’s any room for expansion in the first place. Of course, when research is concerned, startup owners need to account for every single element of their business that makes it a complete whole, rather than focusing on just some aspects of it. And even though the majority of startup owners find this step to be the most tedious one, it’s absolutely mandatory.

Choosing the market

After the research phase is complete, it’s time to move on to determining which international market to focus on. This decision will mostly depend on the type of products and services your startup offers. Additionally, tech startups should also focus on choosing the markets within stable political and geopolitical environments, as well as the ones with high broadband and stable mobile penetration. Finally, choosing a market with favorable taxes and regulatory requirements is more than worth considering as well.

Focusing on details

The third step when looking into an international expansion is learning as much as possible about the region’s and market’s details. For instance, some countries will require you to become a legal resident in order to be able to run a business from within their borders. That’s why an increasing number of foreigners are looking into ways they can obtain a residence permit in Serbia, as this country is starting to look more and more attractive to foreign investments and experts. So, once you decide on the market you wish to expand to, make sure you learn about all of its ins and outs.

Paying attention to logistics

Next, you will need to think long and hard about the logistics of the expansion. Here, you’ll need to consider whether your international expansion will require you to hire a whole new team of employees, or if offering some of your current ones to relocate would be a better option. Additionally, if your business is selling products, you will also need to inquire about the manufacturing and shipping processes.

Planning the budget

Needless to say, all of the aforementioned tips can simply be disregarded if your startup simply doesn’t have enough means for such an expansion. What this means is that aside from doing all of the research and preparation we’ve mentioned previously, you will also need to be realistic about your startup’s budget and revenue. Of course, even if you don’t actually have enough monetary power to fully support your expansion, that doesn’t necessarily mean the end of the road. Instead, you can always look for aid in terms of loans or investors. But in such an instance, you will need to ensure that the expansion will bring enough revenue that you’ll be able to cover those loans within the given timeframe. Otherwise, you could only compromise the success of the expansion, as well as your business as a whole.

Making sure that the time is right

In the end, you will also need to ensure that the time is right. What this means is that something like an international or global expansion should never be rushed. Instead, you need to make sure you’ve done your due diligence and are satisfied with all data the research has presented you with. Moreover, when choosing the right timing, it’s important to keep in mind that your business is not the only parameter you should focus on. Instead, you also need to make sure that the market you’re trying to enter is ready to have you. By expanding your business internationally at just the right time, you may even reap the benefits of beating your competitors to it.

 

The bottom line, when talking about any business expansion is research. The more things you check and account for prior to the actual expansion, the more you’ll be ready for such a huge undertaking. Needless to say, if well prepared, the expansion will be seamless and enjoyable. So, make sure you do all in your power to set your business up for success.