When we first started our business, we never thought that we would achieve successful global sales expansion. But as our company grew, so did the demand for our products and services. We realized that in order to meet this demand, we would need to open a sales office in a new country. And so that’s exactly what we did!
It was definitely a challenge at first, but with careful planning and execution, we were able to set up shop successfully and start serving our international clients. If you’re aiming for international sales expansion, then here are some tips on how to open a sales office in a new country:
Global Sales Expansion
Global sales expansion refers to a company’s growth in sales in new geographic markets.
This can be achieved through a number of different strategies, such as opening new stores or branches in new countries, or by increasing marketing and advertising efforts in new regions.
International sales expansion can be a risky proposition, as it requires a significant investment of resources and can often be difficult to establish a foothold in new markets.
However, it can also be a very rewarding strategy, as it can lead to significant growth in revenue and market share.
Global Expansion Strategies
Many large companies invest heavily in expanding their operations into other markets. They do this by maximizing their resources, creating efficiencies, and lowering costs. This enables them to increase their profit margins while selling goods and services at a lower price.
When looking to expand your business globally, it is important to create a well-defined strategy for doing so. This global business strategy should cover things like your primary target markets, your key customer segments, your distribution strategy and your operating models. Having a plan for each of these areas will help you to expand successfully and increase your market share.
B2B SaaS companies can be flexible in how they approach expansion, unlike restaurants and consumer goods. These are the most popular strategies, as highlighted by this Principles of Management course.
- Indirect Sales: Companies without the infrastructure to expand their direct selling teams often turn to channel partners to help them grow. Partner programs are a cost-effective method to expand your global reach.
- Standardization strategy: B2B SaaS products can solve universal problems (for example, marketing automation, CRM, etc.) so your company can treat the entire world as one market. It’s easier to adapt how your product functions for local audiences.
- Multi-domestic strategy: While the overall business is still managed and controlled by the headquarters, regional managers have the ability to tailor packaging, sales incentives and pricing models to best meet their customers.
- Transnational strategy: Companies that adopt this strategy are able to maintain economies-of-scale by standardizing their products across all market segments while still allowing each country the opportunity to win pricing against local rivals.
- Licensing: Businesses can license their trademarks or patents to a company located in a target area, who then sells the product. To use the intellectual property, the licensee must pay a fee to licensor and be responsible for all sales, marketing, and manufacturing efforts. This is a low-effort, high-return investment strategy.
- Franchising: As with licensing, a company can use the intellectual property from a business to reach a targeted audience. The difference is that the parent company has the power to enforce strict business rules. The franchisee has less freedom of operation.
- Joint venture: Finally, your company can partner with a company in your country by taking over the business and its operations. A local brand’s reputation and knowledge can help you reach your ideal customers more quickly. Both companies share equal ownership and must decide which company invests the most resources.
4 Steps for Entering New International Markets
Start with the markets you most readily can penetrate, where you find the least resistance. Then, as you grow and learn, slowly expand your reach into more difficult and competitive markets.
Step #1: Target markets that speak the same language as you
If you’re a German business, consider expanding into Austria and Switzerland first, rather than trying to target the Chinese market.
Many companies mistakenly base their entry into foreign markets on the size of the opportunity, not taking into account the many complexities that are involved.
Step #2: Begin selling to a foreign audience from the comfort of your office
The next step to expanding your international business is to hire people in these countries who understand the culture and speak the local language.
It’s better to hire salespeople who are based locally because they’ll be able to speak the same language that your prospective customers do.
Because you want to give your sales team a feel for your office culture before having them leave and sell in another location.
For the first couple of months, let the newbie sell under you, using your sales process and your sales pitch. You want them to be fully immersed in your process and your pitch, so they will completely understand it.
Step #3: Go visit the country you are targeting
Now you—the CEO, or VP of Marketing—should make trips to that country. Start going to conferences, networking events, and getting involved in that market.
If you already have customers in your target country, visit them to learn more about how they use your product and what improvements they would like to see. You can also ask them for introductions to other potential customers. If you don’t have any customers there yet, research your potential customer base to identify the best way to reach them. \
Consider how they are currently dealing with the issue your product can help them solve and whether there is a need for your product in that market. Also, research the business culture in your target country and look into any competitors you may have. Finally, consider the legalities and financial issues you will need to deal with when expanding into that market.
As the founder and owner of your company, you have a better understanding of the bigger picture as well as the different intricate details. This enables you to see opportunities where other business owners may not and build relationships with customers.
Step #4: Start a sales office in the target country
Once your reps are successful at closing deals in one country, set up an office there.
If you’re looking to grow and expand into a new country, it’s a great idea to find a few salespeople who already sell there. Once you have a few representatives, you can open up a new office and start hiring more employees. Your new manager should be someone who knows the market and understands how to sell there.
They should also be able to communicate the company vision effectively. Once you have a solid base, you can finally start opening your official office and begin to benchmark it against the temporary one. With a good team, you can expect to see better growth and continued success in your new location.
Conclusion
If you’re looking to achieve a successful global sales expansion, then opening a sales office in a new country is a great way to do it. Just be sure to plan carefully and execute flawlessly, and you’ll be serving international clients in no time!
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