TACTICO Logistics together with our partner ICOA International has a vision of empowering both small business and entepreuneurs who are experienced at providing services and products in their own region to expand their business into other markets at a competetive price and with a comprehensive range of outsourced support services to make the expansion as hassle free as possible.
Below are some of the vital points to consider.
Entering a foreign market – especially one which is highly regulated – can be very challenging with multiple obstacles. We find that many clients are keen on overseas expansion the biggest problem for many is knowing where to begin. Basically there are several possible routes and they are listed in order of which are the least problematic.
Exporting Direct From Your Current Location
This is the simplest route by far – you start marking the product of service directly to the target market you are looking to enter. Very little is required but lets assume you are based in Germany and want to enter the US and Canadian markets essentially all you need is a local contact phone number (Tollfree is ideal) and a means to accept payment in USD and CAD other than those two items and arranging delivery you are good to go.
The reality of the situation is exporting direct to a new market is very similar to selling products in your existing market.
Partners, Agents and Distributors
Finding a partner, agent or appointing a distributor is another way to move forward quickly plus means the goods can be shipped from within the territory. This arrangement can take many forms but a distributor works well for many companies and means you are not dealing with end users. We favour appointing a distributor over appointing a partner or agent because it takes 75% of the work out of the whole thing, also it is a defined and formal arrangement the only downside is it normally involves exclusivity in that particular market which can be a plus or a minus depending on your business model.
If you can find either a good partner, agent or a distributor, you’ll be able to get established much more rapidly in your new market – the biggest plus of all is that he or she will know everything about how the local market operates and be able to work our which products or services are likely to be successful. They will also promote the products because more sales means increased income.
We distribute 20+ products for clients in various markets and the partnerships are extremely successful.
With franchising much depends on the product or service and if you’re not familiar with franchising, this is how it works:
You create a successful brand (e.g. clothing or jewellery)
You allow business owners to see under your brand name as opposed to distributors who sell the product under their own name.
The franchisees pay you a set fee or percentage of the profits or sometimes both. They retain the remainder of the income.
They frequently also pay to secure the rights to the franchise.
They can also appoint further franchisees locally with them then becoming the master franchise.
The best thing about franchising is that it’s one of the easier ways to move into new markets and once you franchise in one country you just keep repeating the process in others. Essentially all you have to do is take your existing, successful business model, find a franchisee in your target market, work our the fine details then get underway. One vital tip though is make sure you secure the trademarks before you sign anyone up!
The bad thing about franchising is that you have to ensure the franchisee is performing to the requisite standard. Also keep in mind franchising won’t work for everything but one of our clients makes a fortune with a cosmetic product sold in 28 countries, another British client who moved to Holland and opened a business selling hot roast beef, turkey and pork sandwiches (similar format to most takeaways) and thought he would sell a franchise back in the UK and then in Ireland and it took off from there.
We have experience of all these area and the program delivery methodology was developed over many years of working with clients worldwide in launching products and services in markets where they had not previously operated.
We believe that our key strengths are being adaptable and reactive to the ever developing needs of our clients, knowing that requirements can subtly change as technology, payment, communications and e-commerce solutions become ever more sophisticated and global.
We work as a business partner, allocating dedicated resource with the specialist skills to fulfill the client brief, whether the preference is for local talent or globally mobile international consultants. Above all, we believe that by listening to the client and understanding the business context of their requirements, we can rapidly cover ground in the early stages when we agree the basic business plan and objectives, then moving forward to the initiation and solution scoping phases of an implementation program and from thereon, we continue to communicate effectively with the client and any other parties involved in implementation to formalize the program roadmap and work through to the stage at which the business is operating effectively in its chosen market. As far as the timescale it's always difficult to be exact because cases vary significantly but in over 50% of cases we find it's possible to be operating in a new market within as short a time frame as two or three months.