Finding Great Local Partners During International Expansion
When expanding your business abroad, one of the major challenges is establishing yourself in a market that you may know little to nothing about. That’s why companies looking to expand internationally should also be looking for local partners to make the expansion a seamless one. Here, we explain what makes for great local partners and how to find them.
What Makes a Great Local Partner
When you take your business international, you’re taking your business into possibly unchartered territories. A great local partner will know the market and how to navigate it successfully. This in turn will minimise the costs and risks that can come with international market expansion. Sourcing a partner who has had experience in other international business expansions is also beneficial, as you can do your due diligence on this future partner through their previous collaborators.
Finding common ground is an immense advantage when it comes to forming a partnership. When possible, look for a partner whose company culture and strategy are similar to your own. It’s possible in these circumstances that the partner you choose will have no experience in your market, but the common ground could be worth the risk.
How to Find the Right Partners to Successfully Aid your Company
One way to find local partners is through connections you’ve formed, either in your home market, through your research into your new market or from business associates.
Help can also come from a source you may not have expected: the government of your current market. In Europe, the Enterprise Europe Network (EEN) provides trade expertise and services for companies. The UK also offers assistance through their Department for International Trade. These departments have a plethora of knowledge and welcome the opportunity to offer their assistance and services to companies looking for international partners. Other government aid can be found through foreign embassies and trade commissions.
Another place to find a local partner is through expos and trade shows, where companies can come face to face with potential partners and get a feel for the potential partnership.
What To do Once You’ve Found Local Partnerships
Once you’ve established a partnership, negotiate a clear contract of what is expected, including the length of the agreement – some companies only hire local partners for the first few years to get the expansion up and running before they can regain control. It is important that you relinquish control to your partner in order to let them do their job effectively – remember, they know local business practices, rules and regulations.
Finding great local partners could make or break an international expansion, which is why it’s important to take the matter seriously. Let Galvin International’s international expansion concierge service help you utilise your resources, as well as our own, to find local partners that will help you in your expansion. We offer expert advice, custom solutions and the on-ground support you need during your international expansion.
Get in touch with us today to learn how we can help you grow your business internationally and connect you with the right people.
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