Starting to sell to a new market is an exciting phase and milestone in a startup’s journey. However, this journey can also be overwhelming.There are many steps to take prior to entering a new market, whether it be related to banking implications, regulations, legal and IP protection, changes to the product, and more! There is a lot to be done before you’re ready to begin exporting. This blog breaks down the 8 factors you need to consider before you’re ready to “go global.”
Before we jump into the 8 key factors, it’s also important to ensure you are ready to begin your exporting journey! Many startups jump at the opportunity to expand to a new market. However, if you do not meet the regulatory requirements, ensure you have enough demand, and/or have the budget, your entry into a new market may not be successful. To see if you’re ready to begin exporting, try taking the Trade Commissioner Service’s Export Quiz: Are you Ready?
Now onto the 8 steps:
1. Create a Business Plan
Although you may already have a business plan, it’s important to refine the key elements of your business plan for the new market you’re planning on entering. Who will be your target market? What channels are you planning on using for distribution?
2. Market Knowledge
Do you understand the market you’ll be entering? Did you consider the cultural differences of that market? What trends are you seeing? How big is the market?
3. Competitors Knowledge
While you may be first-to-market in your country, what competitors already exist in the new market you’re entering? Are there indirect competitors or substitute products or services that customers are currently using? Are there local or native brands that already have consumers’ trust?
4. Product Differentiation
What is the unique advantage of your product or service in this new market? What is your value proposition? Do you need to change your packaging?
5. Regulatory, Logistics, Operations, and Supply Chain
Do you meet all of the regulatory requirements? How will you transport your product to this new market? Do you need local distribution partners or warehouses?
6. Risk Assessment
What are the macroeconomic factors that may impact your success? Does that market experience war, climate disasters, or political strife?
7. Marketing Plan
Will you need to alter your marketing strategy? Are there different tactics that resonate with this market?
8. Financial Plan
How much capital do you need to enter this new market? What are your financial targets and projections for revenue, costs, and profits?
Resources for Success: How Desjardins Can Help
Once you’ve gone through each of these considerations, you’ll be ready to start your exporting journey! While it may seem overwhelming at first, there are a lot of resources to support you. Introducing Desjardins International Gateway, a solution designed to facilitate international growth in any sector. Desjardins’ international consulting and advisory services include:
- Multi-country targeting and exploration
- Support with finding partners, distributors, suppliers, clients, etc.
- Help getting established in another country
- Access to individual trade and business missions
For more information, contact services.internationaux@
Wrap-up
If you’re considering entering a new market, make sure you take the time to think through these 8 key factors to ensure you’re set up for success and find the right partners and resources to help you along the way!