The-International-Entrepreneur.Com

The-International-Entrepreneur.com

Becky DeStigter+1-303-601-2566 (Mobile)

International Marketing Consultant@IntlEntreprenr

The International Entrepreneur – International Market Entry Checklist

The purpose of this checklist is to help a growing company entering a new international market to cover all the bases. There may be some variance based on a company’s past experiences, industry, country, etc. but it would be best to at least review each point to ensure that no critical issue emerges to sabotage efforts before entering the market.

Strategic Considerations

Expansion needs 100% Management Commitment to move forward
Research market: estimate market size, market share, price and profit margin
Set aside market expansion funds- US$100,000-$1,000,000 over 2 years based on market & industry
Identify or recruit experienced international staff (more than just foreign languagespeakers)
Decide for how you’ll get your product to market (reps, direct sales, intermediaries)
Understand the cost structure ofyour product/service and then how it would be affected by the new market
Create a change management plan for how to win over your employees to the new market

Can you actually export your product to this specific country?

Travel to the host country on at least one fact-finding mission to meet local industry contacts and gather first-hand information (ideally travel several times)
Any political restrictions (embargos, etc.) against the host country
Home country’s export control lists (weapons, security, etc.)
Host country’s import control lists (product bans, etc.)

Legal, including Intellectual Property Protection

Hire an international business transactions attorney with experience & connections in the market you’ll be entering
Seek advice from your attorney about any legal considerations, restrictions, corruption issues, etc.
Register your company in the host country, if needed, and understand the options
File any necessary patents, copyrights, trademarks, etc. to protect IP in the host country
Verify that IP protections have not been already filed on similar assets by another country
Develop a plan to deal with IP infringements
Understand where risks lie both here and abroad for litigation brought against you
Ensure that your attorney has counterparts (same firm or partnership) with a law firm in the host country

Accounting Considerations

Hire a good international accountant
Seek specific country advice about tax implications, funds repatriation, and currency fluctuations
Product warranties, shipping insurance, international banking fees and any costs of export/import certifications
Any home government export-promotion tax credits or other incentive programs

Is your product designed for the new host market?

Product Standards (these are country specific ex. CE marking from European Union)
Right % of country of origin to meet any requirements for trade agreements
Product Size optimized for shipping
Electrical Voltage conversion
Metrics vs. English measurements
User preferences

Product Packing, Labeling & Shipping

Right language for the market
Labeling requirements
Packaging localized
Packaging stable enough to protect product in transit
Freight forwarder (a good freight forwarder is worth their weight in gold!)
Learn about the international shipping and financing options. Make sure that your shipping & financing terms can be used together

Local Promotion

Local marketing mix selected with local marketing input/advice
Website translated (if needed) and localized
Presentations translated and localized
Marketing materials translated and localized
Local sales representatives hired/contracted and then trained on your products/services
Set appropriate limits for terms and options negotiated by sales reps (if product is complex)

Support

Develop a plan for how to support new customers in the host country
If support staff is local, then staff needs to be trained on company culture, products, etc.
If support staff is in your home office, the staff needs to be trained on the host country culture and possibly hire fluent language speakers (depending what is being sold)
Plan for any replacement parts, equipment, software, etc. to logistically reach host country customers in a timely & cost-effective way

Periodic Evaluation

Plan for when the expansion to this new market will be evaluated
Evaluation should include market penetration and financial progress, as well as all lessons learned

This checklist should act as either a starting point for the types of information and resources a company should be gathering to enter a new international market; or used to double-check an in-process market entry effort. Either way, should your company need any assistance in entering a new market, please contact me. Best wishes, - Becky