By Viktor Andruhiv, co-founder of Fibermix and Savex MineralsÂ
In today’s interconnected and globalized economy, businesses must find a way to keep themselves within the borders of their home markets. The vast untapped potential lies in foreign markets, waiting to be harnessed by visionary entrepreneurs and forward-thinking business owners. Expanding into international territories not only opens doors to new customers but also offers numerous strategic advantages and opportunities for sustained growth. According to the recently conducted Initiatives for Economic Recovery survey in Ukraine, an alarming 40% of businesses have identified export development as a crucial strategy.
Now, let’s explore some key steps for companies to make themselves more appealing to international audiences and capture the attention of potential foreign clients and partners.
Gaining a Competitive Edge: The Key to Success in Foreign Markets
Any company needs to have a competitive advantage, regardless of the market it operates in. To get foreign customers, you need to give them something that makes them want to choose your company over others. Depending on your business’s type and condition, your competitive advantage may stem from various factors, such as:
- Modern technologies and equipment;
- Unique products that have no equivalents on the market
- Resources: access to cheaper or higher-quality raw materials compared to competitors, and more.
But customers usually care about how much the product costs and how good it is for their money. So, one way to get into foreign markets is to offer better conditions than your competitors. We have employed this approach by reducing prices, enabling us to secure contracts with major companies. This allows us to showcase our products, build a reputation, and gradually increase the volume of orders. This approach helps you set competitive prices and puts your business on an equal playing field with other companies after a few successful years in the market.
Obtain the Required Certificates
Every country has its own rules for how to do business and make good products. The European Union (EU) has more strict rules than Ukraine. To enter a foreign market, it is crucial to thoroughly understand the specific countries’ work regulations, acquire the necessary documentation, and undergo certification. It is fundamental and indispensable for conducting business worldwide.
The number and types of documents and certificates vary depending on the industry and business type. Consider these essential aspects in advance:
- Company registration: familiarize yourself with the procedures for registering a legal entity in the country where you intend to operate.
- Opening accounts and obtaining a tax number.
- Acquiring licenses and permits, if relevant to your industry.
- Quality and safety certifications, along with documentation validating the origin of your products.
The client or partner will only engage in business with you with properly executed documents and appropriate certification. So, it’s important to address this issue quickly when you decide to enter a new market.
Build Reliable and Effective Communication With Clients
Effective communication plays a pivotal role when it comes to collaborating with partners and attracting customers. It’s essential, to be honest and precise when talking from the beginning. Instead of making grand claims and empty promises, provide genuine information about your business. Clearly communicate the technical capabilities of your production and help clients understand how the product’s value is determined. This approach prevents misunderstandings and ensures a long-lasting partnership.
It is also important to respect the communication rules in the target country. For instance, written correspondence holds great significance in the EU, as Europeans prefer documenting all agreements. Ensuring error-free and precise communication in letters and documents is highly desirable, as it shapes your reputation.
Boost your social capital for business success
In the competitive business landscape, having a strong reputation and a proven track record is crucial for attracting clients and partners. How can you do it?
- Showcase your success: document and share the results of your successful projects, along with feedback from satisfied customers and partners. These success stories will serve as compelling evidence of your worth and convince others to choose your company.
- Engage in specialized exhibitions and events: Participating in industry-specific gatherings provides excellent networking opportunities. It allows you to connect with potential partners, reinforce your reputation, and keep your brand in the spotlight.
- Establish a strong online presence: In today’s digital world, a robust online presence is essential for visibility. Treat your social media pages as more than just a formality. Share relevant information about your company and highlight examples of successful projects to engage and captivate your audience.
- Utilize effective marketing tools. Use marketing tools like email newsletters and collaborations with influencers to get your message out there. However, before investing in business promotion, take the time to understand your client’s needs and tailor your communication accordingly.
By actively working on these strategies, you can enhance your social capital, increase your brand’s reputation, and position yourself for long-term success.
Embrace transparency in business operations
Both customers and investors are dissatisfied with business practices with ‘gray areas.’ A single mistake can ruin your company’s image for a long time, end relationships, and cause a lot of money to be lost. That’s why being open and honest is crucial for a business to succeed, especially in other countries where reputation is vital. In certain countries, meeting Western standards of reputation is mandatory even to open a bank account.
Business transparency includes things like proper documentation, tax compliance, company information, fair agreements without hidden clauses, and even small details. We use employee photos on our websites to let clients and partners get to know the people who run our company. This cultivates trust and positively influences the quality of our collaborations.
By embracing openness in all aspects of your business, you lay the groundwork for confidence, credibility, and productive business connections.
