According to the Office of Advocacy, only 78.5% of small businesses survive their first year. Newable exists to help other businesses to thrive, through this first year and beyond. We do this by providing the essential resources needed to make the next step. Our top tips series has been designed to overcome the hurdles entrepreneurs often face when scaling their business. Read our top tips for SMEs on Expanding Globally.
Conduct thorough market research
Understanding your market is essential for successful expansion. In many ways, expanding your business globally is like starting your business from scratch. It is crucial to understand your market dynamics, target audience and competitors. A product or service that works well in one market may have a lower market value in another country. CB Insights reported that 42% of businesses failed due to the launch of unoriginal products or services. Conducting comprehensive research will help you identify the appropriate market for your business. It will also help you to analyse growth opportunities, potential challenges and areas for differentiation and exploitation.
Focus on customer needs
Sometimes overlooked by founders as they tend to be hyper focused on either the product or the growth strategy, but keep your customer in mind at all times. By listening to your customers and their feedback, it can help to identify any pain points and areas for improvement as well as customer needs and wants. This valuable information will allow you to create targeted growth plans for your audience.
Business development and customer service go hand in hand. Your customers are likely to recommend your product or service to others if they have had a positive customer experience, which in turn helps to expand your customer base. Qualtrics XM Institute have reported that consumers are 38% more likely to recommend a company after experiencing good customer service.
Leverage strategic partnership
CB Insights reported that 8% of start-ups failed because they neglected to network. Collaborating with other non-competing SME’s that share your vision and values can create mutually beneficial opportunities for growth, including access to new markets, resources and customer segments.
By networking with overseas companies, you will not only gain access to local knowledge, resources and talent, which is essential information when creating your growth strategy, but it will also provide your business with a positive reputation in your new market. This positive reputation could persuade local investors and consumers to trust in your product or service.
Develop a clear growth strategy
Once you have conducted thorough market research, the next step is to develop a clear growth strategy which can serve as your business roadmap. No two markets are the same and so you must create a growth plan for each market you wish to break into. You will need to set specific goals and objectives, identify key resources and capabilities required and outline the essential steps needed to achieve your desired growth.
Here at Newable, we have a team of experienced advisors passionate about helping SMEs. We give a range of external support from help to get trading overseas to develop new management capability.
Expansion efforts very often require substantial financial resources. CB Insights have reported that 29% of businesses fail because they run out of cash. It is essential to have a solid financial plan in place. This could include obtaining external finance (debt, equity or grants), optimising cash flow management or implementing cost-saving measures to ensure you stay financially sustainable throughout the expansion.
The cost to expand your business will depend on the type of business you have, as well as your expansion plans. Regardless of this, it is likely that you will need to source outside funding. It is recommended to compare your options to find the right loan for you.
Newable has a range of financial products and services designed to help your business.
Developing a strong online presence
Maintaining a strong online presence is more important than ever in today’s digital age. The Organization for Economic Co-operation and Development (OECD) have stated that ‘SMEs that don’t go digital might not survive’. Whether you choose to use social media and/or websites, make sure you are consistent with posting regular, user-friendly content, optimised for SEO.
A strong online presence will help build brand awareness and enhance the positioning of your product in your market.
Whether it’s developing a strong online presence, helping you develop clear growth strategies or supporting you with the cashflow you need, Newable can help. Email us at us at businesssupport@newable.co.uk
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About Newable
We can also help you in other areas of your business. Whether it be Money, Advice or Workspace, Newable provides the essential resources businesses need to take the next step.
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Read our other blogs in this series:
Top tips for SMEs on Expanding Globally
5 top tips to help make your business reach net zero