MOST COMMON MISTAKES IN INTERNATIONALISATION

Speed up your business with these expert tips "Most common mistakes in internationalisation". Analyse and discover this TIP!

Going abroad is not easy and sometimes you can make the mistake of thinking that you can just start and problems will be solved as they arise. Big mistake! It is easy to make mistakes, but by identifying the main problems, we will be able to better possibilities to identify and solve them.

To internationalise your business you must avoid making the following mistakes

DO IT WITHOUT A PLAN

Going international must be a strategic decision of the company and therefore objectives, activities and resources must be planned.

ADAPT the business model (+)

Another of the most frequent mistakes in the internationalisation process of a company is to think that our business model can be replicated in the country of destination. ¡I recommend to make a new CANVAS for each marketo!

It is essential, take into account the nuances of the business realities of each marketBoth operational (accounting, tax, labour legislation, payment systems, etc.) and cultural aspects are equally or even more important to ensure the viability of the business in that market.

THINKING ABOUT COUNTRIES AND NOT CUSTOMERS

Sometimes it is easier to serve the same type of customers in three different countries than to "look for" customers in one country. Don't focus on the country, think about who and where YOUR customers are.

IGNORING THE COMPETITION

Thinking that competition is only what we know in our local market is a serious mistake. In the country of destination; who will be our competition? There are likely to be global competitors but beware! don't forget the local competitors.

NOT DEVOTING SUFFICIENT RESOURCES TO COMMUNICATION

Marketing and communication are strategic elements in reaching new markets. Remember: you have to be known and have a good image. Arguments that work in the home market do not always work in other markets.

NOT TAKING CARE OF THE WEBSITE

The website is our letter of introduction, especially in a new market. But you should also ask yourself if the home country website is usable without changes (not just a possible translation) in all countries. And of course, take care of the translation of your WEBin the country of destination they DO KNOW THE LANGUAGE. 

NOT HAVING HR WITH THE RIGHT COMPETENCES

I'm sure your team is excellent, but a new strategic activity will be needed above all, time. And internationalisation requires specific knowledge and skills that you need to build into your team.

This TIP will help you your internationalisation department (+).

WHO WILL CARRY THE BURDEN OF INTERNATIONALISATION?

The general recommendation, with some exceptions, is to to be implemented with staff from the parent company. Opt for the figure of a trusted ex-patriate sales manager who will lead the team in the country of destination and who knows the market and sector, rather than looking for a local partner, for example. 75% of the internationalisation projects that have been carried out with local partners break up the partnership before the first 5 years. This is why, if we are going to act with a local partner, it is essential to commercially, by means of a commercial and not a shareholder contract. In such a way that, ensure that during the first few yearsIt delivers what we expect from it, If both parties deliver after this period, it will be possible to move to a shareholding relationship with less fear of failure.

The person we put in charge of our foreign subsidiary should be asked to technical capacity to develop the business and even more importantly, the sufficient honesty that allows us to put all our trust in him. The good relationship and the mutual transparency between the project manager at the destination and the parent company is the most important aspect of an internationalisation process. It is important that the person in charge of the subsidiary has a extensive knowledge of the product and service and transmit to the market the differential values over the competition. The commercial manager in the parent company must give a full support for his counterpart in the new market. Especially during the first year, we estimate that the parent company should spend at least 20% of its time going to the new market, getting to know it and supporting the local team.

Look at this video that complements the tip!

Patience is also a value to be cultivated by the entrepreneur who wants to go abroad, as it takes a few years to see results in a country. Each country works with a different tempo, and you must take this factor into account when going abroad. Setting realistic medium and long-term goals, and taking this path with patience, will facilitate the process. In this sense, too, you need to make a good calculation of resources so that going abroad does not remain an unprofitable attempt a few months after taking the leap.

Good administrative management of the subsidiary in order to achieve success. It is necessary to be familiar with the peculiarities of accounting, tax, labour and commercial legislation in each country. To this end, it is expert advisors in the field are advisable, that allow us to focus on our business and forget the more bureaucratic issues.

How can I use Artificial Intelligence (AI) to avoid typical internationalisation mistakes?

You can use ChatGPT to get advice and tips on how to avoid common mistakes when internationalising a company. You can make questions on the specific steps You can learn about the steps you need to take to plan the internationalisation of your company, how to adapt your business model to meet the needs of a foreign market, how to identify and serve potential customers in the market, how to research local competition, how to communicate effectively in the foreign market, how to take care of your website, how to hire and train the right employees, among other topics.

ChatGPT can provide you with up-to-date information and specific knowledge about internationalisation, to help you make more informed decisions and avoid common mistakes. In addition, ChatGPT can be a valuable tool for obtaining information quickly and efficiently, without having to search for information online or read lengthy articles.

PRACTICAL EXAMPLES OF HOW TO USE CHATGPT TO AVOID TYPICAL MISTAKES

• If you are planning to expand your business to a new country, you can use ChatGPT to find out about the country's business and entrepreneurial culture, as well as the legal and tax requirements you need to comply with.
• If you are designing a marketing and communication strategy for your company in a foreign market, you can use ChatGPT to get recommendations and advice on how to adapt your message and communication channels to the particularities of that market.
• If you are looking for partners or suppliers in another country, you can use ChatGPT to get information on the legal requirements for establishing a business relationship and on best practices for identifying and selecting the best partners and suppliers in that market.
• If you are looking for local talent for your subsidiary in another country, you can use ChatGPT to get information on the skills and competencies you should look for in candidates, as well as to learn about the requirements and particularities of the labour market in that country.

In a nutshell, you can use ChatGPT as a consultation tool to avoid common mistakes in internationalisation, as well as to get recommendations and advice on how to adapt your strategy and your operation to the particularities of each market.