Want to Expand into International Trade? Four Tips for Getting Started

During my career in international trade, I’ve been asked many times by entrepreneurs and executives: How do I get started?

It no longer surprises me because the prospect is exciting. It’s also daunting, though it shouldn’t be. Pursuing global markets isn’t a dice game. It’s all about diligence and consistency.

Here are some guidelines for taking your business to international markets:

Identify a compelling market proposition. Expanding to a smaller market from a larger one (from the United States to Australia, for example) may be different from going from a smaller market to a larger one, but either way, a company needs a good reason for expanding. There’s no point in expanding for expansion’s sake. It’s better to pick a market that is developing in some relevant fashion or to offer an innovation that will turn heads and resonate in a new market. Or perhaps new legislation in a target market has eliminated a barrier to entry. Since any international venture requires receptive customers, the first question that must be answered is: What is our value proposition? Timing is important, too: Don’t be late to the party with the same gifts as those who arrived earlier.

Rely on experts, but not too much. The world of international business is full of trade consultants, many of whom are excellent. And a target market is likely to have economic-development agencies and government programs that can be relied upon for help, often at no charge. These are worth taking advantage of. But, in addition, a business owner ought to personally and diligently research everything. Fortunately, this is much easier today than when I started out. The internet is a ready source of market intelligence, and generative AI tools can help analyze data and craft market strategy. The goal is to combine expert advice with personal understanding—and to be able to determine that a chosen strategy is the right one. Then it has to be followed through with conviction. All of that takes homework, not merely writing a check to a consultant.

Make the trip, more than once. Expanding internationally is nothing like expanding from, say, Illinois to California. A new country means a new culture, new regulations, and new market dynamics. Even if there are no language barriers, there’s still much to learn and no substitute for being there in person. So acquire local knowledge and build relationships. Have a hand in all key hiring decisions. And stay involved through repeat visits. I’ve seen too many companies set up shop, make a few hires, and expect things to run on autopilot. That rarely works out. New markets can help a company build its brand, but a poorly run effort can damage a brand quickly, which is apt to happen if domestic leadership isn’t paying attention.

Allow more money (and time) than you think you need. Exporting and international expansion require good trade financing—a network of banks, credit agencies, and insurers that can mitigate risk, ensure payment, guard against currency fluctuations, and prevent financing for domestic operations from getting stretched too thin. And companies involved in technology or other capital-intensive expansions may need venture capital to underwrite an international push for the long-term. As in any business endeavor, patience is key. I’ve seen companies expand to a new country and succeed beyond expectations immediately, but they are the exceptions. Be prepared for contingencies—and have the funding and patience to overcome bumps in the road.

Leading a company into the international arena takes a special kind of person. If you’re one of those people with the optimism to “go for it” and the realism to not go bust in the process, and a commitment to unwavering diligence, world markets await. Let’s go!