Going global is defined as the worldwide movement toward economic, financial, trade, and communications integration.
Today, the wealth that the new generation of millionaires in Africa generates is created through new and unconventional business opportunities. As African economies develop, opportunities arise in sectors such as retail, telecommunications, banking, infrastructure-related industries, natural resource enterprises, and the entire agricultural value chain.
At the same time, income in most parts of the African continent is growing, creating new business opportunities for the consumer market.
Overall, we expect that by 2030, the annual expenditure of African consumers and businesses will reach US$6.7trillion, up from US$4 trillion in 2015. By 2020, the total number of households in all three market segments will reach 128 million, making Africa one of the fastest-growing regions in this decade’s growing consumer market. Africa is the newest region to become going-global successfully.
The rapidly growing African population and markets provide important business opportunities in the context of slowing global growth.
These emerging markets have a diverse set of offerings, making them attractive to different companies. Expanding your business to new markets can help you maximize profits, minimize risks, and create economies of scale. These are great incentives to leapfrog. Expanding your business overseas isn’t for the faint of heart, but it will be inevitable for most businesses as global markets offer more room for growth.
While successful African companies vary widely in their geographic and industry focus, they are united by the imagination of seeing the unmet needs of continents as entrepreneurial opportunities and the long-term commitment required to build large-scale enterprises. With many South African SMEs having the potential to be the big corporations of tomorrow, African unicorns must continue on their path to growth and prosperity on this continent.
For small and emerging businesses, going global is a significant undertaking that could disrupt existing business activities. Before going global, it is critical to understand what the full impact on your business will be. By paying attention to details and outsourcing administrative functions, the difficult job of “going global” can produce great results. Investors will need to assess growth opportunities at the sector level or use their activities as a base from which to expand into other parts of the region.
CEOs and business leaders must understand its full impact and determine if the rewards outweigh the risks. Stakeholders across the organization will be called on to carry more responsibilities to continue to execute day-to-day activities in addition to the global initiative.
Taking a small business global is a complex and dynamic process. Gaining a deep understanding of the targeted markets, the competition, current local market trends, and the requirements to successfully launch and drive growth lays an important foundation. A professional translation solution provider can assist your company to translate information into any language that suits the target market. Tigrinya translation services are also offered among many other languages of the world.
1. Perform a Market Segmentation Analysis
To be successful business leaders need to understand the environment in each country they enter and adapt their plans accordingly. Indeed, the fastest growing and most profitable companies in Africa generally see challenges as an incentive for innovation.
A deep understanding of target markets, competition, current local market trends, and the requirements for successfully initiating and driving growth lays an important foundation. Before entering the global market, it is important to understand what impact this will have on your business.
Researching your target market and local competition will let you know if your company’s products and services have any impact on the country in which you are expanding. This helps you to know if the products or services you offer will sell. An international trade consultant can help you select the best markets for your business and provide personalized support to get started abroad. South Africa being a major startup hub, a business and a travel destination is also a home to some of the best language firms in Africa which offer localization assistance to companies expanding in other countries. With years of experience in translating, localizing and interpreting services for the private sector, a quality and well researched firm can even assist you with free personalized advice and support to help your overseas business.
2. Develop a Strategy and Business Plan
Using the global goals to inform leadership development strategies Incorporate diverse leadership. Sustainable businesses look to the global goals as their road map to sustainability. Creating and growing a sustainable business is good for several reasons. Chief among them is that we live, work, and play on one planet, and we need to take care of it for the benefit of all. This strategy will make it easy for you to expand into other territories and adhere to the set of rules and guidelines that safeguard the planet against global warming. Part of strategizing is to set up a budget that will sustain the company is branching out. The vision of the company has to be maintained in line with the business model and structure.
3. Use Existing Team Leaders
As a parent company expanding into new territory, you must use current senior management to enable the company to start with a bang. As the company establishes itself in the new territory, recruitment of new senior management will be in process. Highly experienced individuals must be hired to take upon permanent positions. The financial infrastructure can be outsourced to local service providers in the country you are establishing your business. By paying attention to detail and outsourcing administrative functions, the hard work of “global exit” can produce great results.
4. Product Readiness
To achieve success in your product, market your product vigorously in the target market. Do not forget to check government and industry regulations for that particular country to ensure that your product complies with the law. Also, it is important to acquire certificates and licenses for that product. The name and description of your product must be localized and translated into the local language. Also, the Tigrinya translation service is offered by our professional panel of experts. Localization is also offered to help you satisfy the needs of the locals.
Successful African innovators are also deeply conscious of the barriers to their business’ success and are careful to build long-term resilience into their business models. To create a franchise, you license your business model, process, and branding to franchisees who then sell your branded products and services in their location, under the same name as your business.
6. Establish a Go-to-Market Strategy
The effective selling and marketing of your products or services require a comprehensive strategy that addresses sales strategy, sales delivery, branding, value proposition, marketing strategy, marketing programs, and pricing. These strategies create clear market differentiators that help in pricing. Avoid exorbitant pricing of your products. You must consider that consumers in developing countries buy less expensive items. If your product is too expensive it might not sell in these countries.
7. Legal Readiness
Being on the right side of the law is crucial when you are expanding your business into another country. It is very important to ensure that legal processes are properly followed to minimize industry-related lawsuits. Also, your documentation must be put in order so that your company operates legally. All industry-related certificates must be acquired. Customs and immigration procedures must be adhered to, by your company.
8. Tax and Finance Readiness
Compliance with tax requirements in the host country is crucial. Local corporate policies and procedures must be followed so that your company is not accused of tax evasion. Establishing healthy banking relations with financial institutions is very important. Your payroll and all accounts-related issues can be done by consultants. They can also help you to compile sales reports, cash repatriation plans, and risk management plans.
9. Prepare Your Final Budget Preparation
Preparation of a comprehensive and aggressive budget is of uttermost importance in the success of your company. A detailed business plan with milestones ensures that you monitor your success periodically. Reviews must be performed to assess the progress of the expansion venture.
10. Establish Close Relationships with Local Businesses
If you do not want to expand to new markets or add new services to your revenue stream, you can also grow your business by focusing on a single niche. Working with other businesses can help you reach new customers and establish your credentials on a national or even international scale, all of which can help grow your business. Like franchising, this is a way of growing your business by accessing new customers in diverse geographic locations. Create a supporting ecosystem of complementary products and services, which can come via third-party relationships. These relationships can support the growth of the organization while minimizing financial risk.
Therefore, good relations with other companies are very important. A wide trade show presence can help you grow your business and be a proven leader in your industry. Working with these other companies can help you attract new customers and build your reputation nationally or even internationally, which can help you grow your business.