Tips to Take Your Business to the Global Market

“If we want our businesses to grow, we must make smart decisions,” said Astrid Vélez, a business strategist and consultant, while discussing what company’s  need to grow and expand. 

Making smart decisions, she said, requires information, planning, and metric evaluation.

According to Vélez, the first thing every company must know is where it stands in the market, who its customers are, what growth opportunities it has, what internal or external factors will enable expansion, and what aspects it needs to improve or change to make that expansion possible. Furthermore, it must also have a clear picture of its financial health before pursuing expansion.

“I have to assess where I am and what is happening around me to determine where my company’s strengths and weaknesses lie; that way I’ll know how to address those weaknesses quickly and effectively,” explained Vélez, president of Astrid Vélez & Alliances, a firm that has provided specialized training, executive coaching, and strategic consulting to micro and small businesses for 14 years.

The second step is determining the expansion’s direction. This growth can occur in Puerto Rico or globally, through traditional brick-and-mortar locations or through technology and online sales. 

“I always recommend first evaluating how to grow within your territory; that way, you create the best practices that will help you grow overseas,” the expert advised.

Marketing as a key driver of expansion

From the earliest stages, marketing is crucial, whether through market research or by evaluating growth opportunities. “The same evaluation practices we use in Puerto Rico are the ones we will use overseas to validate that what we already have is what we will offer abroad, or to determine what changes need to be made to be effective in the new territory,” Vélez said.

She added that marketing helps business owners analyze and identify their target customers and the problems they aim to solve. 

“It also allows us to see how customers buy and make decisions, so we can determine whether we will enter the market in a traditional way or use technology, and which technology to use, because it’s not necessarily the same technology we use locally.” 

All these analyses and marketing efforts should begin before entering the new territory to position the company and build a solid foundation for international expansion. Vélez also emphasized the importance of understanding the culture of the place where the company is expanding “so that when you approach potential customers, they can connect with your brand.”

She noted that the new trend is for marketing, sales, and service teams to work together rather than separately. Vélez recommended that they work in an integrated manner, which would enable them to support one another toward a common goal.

Once the market research is complete, the entrepreneur should have a clear understanding of the most appropriate growth model for their business. According to the Rethink blog, available on the ESIC University website, a Spanish institution specializing in business and marketing, the primary expansion strategies include:

• Product diversification: The company introduces new products or services.

• Geographic diversification: It establishes a presence in new national or international markets.

• Vertical integration: It acquires or merges with suppliers or distributors to control part or all of the supply chain.

• Franchising: The company offers third parties the opportunity to operate under its brand and with its support.

• Strategic alliances: Mutual-benefit agreements are signed with other organizations to share resources or knowledge.

• Online expansion: The company strengthens its e-commerce platforms, digital marketing strategies, or social media presence.

• Acquisitions and mergers: Growth through the purchase of other companies or through a merger with a similar or complementary business.

Some of these strategies require a greater financial investment than others. The business can use the chosen strategy to develop plans with specific, measurable goals. This way, the strategies can be reviewed several times a year to determine whether the goals are being met and whether the expected results are being achieved. Planning and measurement are key to achieving better results globally. “What isn’t measured, isn’t achieved,” Vélez stated.

Strategic alliances and staff recruitment: alternatives for growth

According to the consultant, forming strategic alliances is an approach that offers greater benefits and requires less investment. “An alliance can be established with any person, company, entity, or business that can add value for you and also benefit from the partnership,” she explained. “You must identify your needs and expectations to determine who to partner with.”

Vélez pointed out that some professionals can help entrepreneurs with their national or international expansion. For example, hiring an accountant can help the company keep its business finances up to date. Similarly, a lawyer can ensure that the company complies with the laws of the markets in which it operates. You could even hire a business consultant to guide the strategic aspects or a human resources firm if your company has employees.

 

 

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