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Your expansion project in 10 questions

Are you ready to go international? Is your foreign strategy mapped out down to the last detail? The best way to be sure is to carry out a final evaluation of your expansion project.

1. Is your business built to cross borders?
   Of course, but on one condition: that you meticulously prepare for the adventure. There is no standard profile for successfully conquering foreign markets. Did you know, for example, that Belgian SMEs are champions in international trade compared to their European counterparts? Structures with less than 10 employees are even very well represented, as they account for half (46%) of intra-European trade. This is direct proof that internationalisation is not only reserved for large groups and that Belgium is a country with a high level of foreign-oriented businesses (almost 85% of national GDP).
   
   
2. Should you limit your project to neighbouring countries?
   There are no rules. However, it is no surprise that almost 80% of Belgian trade takes place within Europe, most specifically Germany (it’s by far the best customer), France and the Netherlands. That said, the trend has evolved in recent years, and numerous companies now do business all over the world: in the United States, China and India, as well as Brazil and the Gulf States. It is a way to escape European competition, tap into markets in full growth and  find target audiences that match the company’s ambitions and strategy. This is a finding that should encourage you to look for the ideal market – far or near – to ensure your growth.
   
   
3. What is the biggest challenge of your internationalisation project?
   There is no single 'magic' answer to this question. That would be too easy. However, you can have one crucial element at your disposal: information. That’s logical, because when you expand internationally, improvisation is out of the question. All the more reason, then, to first carry out a thorough analysis of your business and clearly define your strengths, weaknesses, values and objectives. And after that? Your project should be underpinned by a strategy based on solid elements and a 360-degree assessment. This means having as much data as possible about your target market and the risks involved. So information is one of the keys to success! 
   
   
4. Is the internationalisation method you have chosen the right one?
   Export, patent transfer, a commercial intermediary, branch offices, local distributors, joint ventures, subsidiaries or merger acquisition: there is a way forward for everyone. You need to do what’s right for you, taking into account many factors: your structure, the sector, the target market, your resources (HR, financial, etc.), your risk tolerance, etc. There's no such thing as 'one size fits all'. But what we do know is that a bad strategy can be fatal. So explore several avenues before making a final decision.
   
   
5. Are you sufficiently ahead of your competitors?
   This question is essential to developing precise plans. You can also formulate it differently. For instance, can you transfer your 'value' to the target market?, or, do you have, or will you have, sufficient capacity to gain a competitive advantage locally? This also means that you need to consider the added value of your products and/or services, your innovative strength, your unique or specific expertise and your technological advantage. 
   
   
6. Is this the right time to grow internationally?
   The timing of your internationalisation is another decisive parameter. It is made up of three different elements: 
• The life cycle of your own business: are you ready now or do you need to 'grow' in certain areas or persevere in certain aspects to avoid, like Icarus, flying too high and burning your wings?
• Opportunities: the economy in your target market plays a decisive role. An offer for a partnership, economic news or the fact that you can benefit from a commercial launch window. But beware of a purely 'opportunistic' approach, as the tide may turn. 
• The rhythm of your international growth project. In other words: You can start working gradually to better control the risks and increase your knowledge. Or you can launch a major project right away.
  
  
7. Do you have competent people and enough of them to make your project a success?
   It is important not to lose sight of the human factor. In fact, your human resources deserve special attention on several levels:
• Buy-in: as a manager, you need to 'bring' the whole organisation into the adventure. Without the commitment of your teams and the involvement of your managers, it won't work.
• Internal organisation: your effectiveness depends on your ability to face the many future challenges that lie ahead (commercial, legal, logistics, etc.). You must therefore prepare yourself: either by mobilising people who are already active in your organisation or by recruiting specialist profiles.
• Local workforce: there are sometimes huge differences between countries. This can be in terms of culture, legislation, management or competences. You need to consider all these factors.
  
  
8. Are all risks covered?
   International expansion will involve many pitfalls. Hence the saying, 'to govern is to look ahead'. From foreign exchange risk to financial or legal pitfalls to supply and distribution difficulties, you need to anticipate these threats as much as possible in order to develop quick and effective response plans. 
   
   
9. What mistakes should you avoid?
   That is a very general question! One thing is for sure: many companies give up after a few months, and some failures of large chains are downright distressing. Although there are sometimes parameters beyond the company's control, many factors can explain these disappointments:  
• Incorrect assessment of local competition and market expectations; 
• Wrong choice of market access strategy;
• Poor choice of partners or over-reliance on local intermediaries;
• Insufficient knowledge of cultural differences, such as products that are not adapted to local tastes, strained business relationships, etc.;
• Wrong marketing strategy;
• Insufficient preparation for internationalisation;
• Underestimating the financial investment or costs involved in the project.
  
  
10. Are you being properly guided?
    This is one of the keys to success. So don't embark on the conquest of foreign markets alone!