Tips for expanding internationally successfully

A successful international expansion opens up global markets and multiplies your customer base. Many companies fail due to strategic missteps or financial constraints – even with promising products and services. In this article, we’ll reveal tips and tricks to ensure your international expansion becomes a complete success.

Reasons for expanding internationally

International expansion offers businesses a wide range of opportunities. When the domestic market becomes saturated, companies seek new growth prospects by expanding internationally. In foreign markets, competition may be less intense, creating additional revenue potential.

Accessing new markets enables businesses to reach a larger customer base and unlock new revenue streams. A global presence also offers companies the chance to benefit from diverse economic conditions.

It’s important to note that expanding internationally doesn’t always require a physical presence. Digital strategies allow for a global reach without being physically present, minimising costs and simplifying market entry.

By expanding business internationally, companies can also diversify risks and protect themselves against fluctuations in individual markets. Overall, international expansion broadens horizons, drives growth, and strengthens a company’s position in both the domestic and global marketplace.

However, it’s crucial to remember that expansion – whether digital or physical – does not come without challenges. Companies face complex strategic, financial, and operational hurdles that require careful planning. To learn about potential pitfalls and how to overcome them, read our article on International Expansion Challenges.

7 Tips for successfully expanding internationally

From comprehensive strategic planning to effective execution, the following tips and tricks help structure and simplify the process of expanding internationally.

1. Conduct market analysis for expanding internationally

The first step in expanding internationally begins with thorough planning. This includes analysing the target audience and understanding their needs, preferences, and purchasing behaviors in the target region. Equally important is evaluating the competitive landscape to identify existing competitors, their offerings, and market positions.

Additionally, legal requirements play a critical role: Laws, regulations, and compliance aspects must be considered to establish a successful foothold when expanding internationally.

Market analysis also covers cultural differences, trends, and economic conditions that can influence the business environment. A comprehensive initial analysis provides valuable insights and lays the foundation for a well-informed and successful approach to expanding internationally into the desired region.

Already have plans for your target country?

• Discover our guide to starting a business in Germany as a foreigner aiming to expand internationally.
• Find out how to start a business in the Netherlands while expanding internationally.

2. Calculate time and costs

Time and cost estimation is a central aspect of planning when expanding internationally and requires special attention. A realistic assessment of financial and time resources is essential to avoid unexpected constraints during the process of expanding internationally.

Depending on the scale of international expansion and the resources available, funding can be obtained through equity, bank loans, investors, or financing rounds. Particularly for larger projects, risk-tolerant investors or strategic partners are often essential to distribute the financial burden and fully capitalise on growth opportunities.

A detailed cost analysis is necessary to establish budgets for each individual step. Time management is also crucial: Depending on the industry, market requirements, and regulatory hurdles, the process of expanding internationally can take anywhere from several months to several years.

Securing the necessary financial resources requires thorough preparation and a convincing business plan that demonstrates the profitability of expanding internationally to investors and lenders.

3. Develop a market entry strategy

From planning to gradual implementation: A well-thought-out market entry or launch strategy is essential for successful international expansion. It encompasses a wide range of measures, including marketing, distribution, and, if necessary, establishing a business presence abroad. Ensuring compliance with legal requirements and local regulations is also a critical component of expanding business internationally, helping to overcome regulatory hurdles early.

A central focus of the marketing strategy lies in effectively targeting the audience, with cultural differences from the domestic market playing a significant role. At the same time, the distribution strategy ensures that efficient supply chains and strategic partnerships are established locally to facilitate smooth market entry.

Calculated risks are an important aspect: Comprehensive market analyses and test runs help minimize potential threats. Gradually implementing a launch strategy ensures a solid introduction into the target market and provides room for sustainable growth and adjustments.

4. International Search Engine Optimization (SEO)

An initial, relatively low-risk step for expanding internationally is to strategically enhance your digital presence. This begins with content translation and localisation, complemented by an SEO strategy tailored to the target country.

Through precise keyword research and adjustments to local search habits, search engine visibility can be significantly improved. Cultural nuances and the specific needs of the target audience play a central role in content creation, which is essential for effective international expansion. Additionally, optimising metadata, URL structures, and building local backlinks can enhance visibility and relevance in the target country.

A well-thought-out digital strategy that is linguistically and culturally tailored to the new market forms the foundation for a strong online presence. This approach allows companies to tap into market potential early and lay the groundwork for successfully expanding business internationally.

5. Protect yourself from currency fluctuations

Expanding internationally inevitably involves currency risks, as suppliers or customers may be paid or make payments in foreign currencies. To minimise financial uncertainties caused by currency fluctuations, companies should actively protect themselves against exchange rate risk.

A proven measure during international expansion is to open a business account in the target country to reduce exchange rate risks and handle transactions more efficiently. Additionally, maintaining cash reserves in the foreign currency and utilising financial instruments such as derivatives or options can help safeguard against unexpected currency fluctuations.

Effective risk management also includes developing clear processes and strategies to address currency risks in the process of expanding business internationally. This may involve agreements in local currencies, flexible pricing strategies, and regular analysis of market developments.

By taking a proactive approach, companies can identify and minimise financial risks early on. This approach helps establish a stable financial foundation for successful international expansion and ensures competitiveness in new markets.

6. Choosing the right foreign currency account

To make transfers in the target country as cost-effective and straightforward as possible from the very beginning, selecting the right multi-currency account is essential. A standard foreign currency account offers limited benefits if transfers still have to be processed through the expensive and slow SWIFT network.

Instead, the ideal account should be free of charge, offer low and transparent exchange rate fees, and most importantly, provide access to local payment options such as SEPA in Europe or ACH in the USA.

The advantage: Utilising local payment options can significantly reduce foreign transaction fees, as the high SWIFT fees are eliminated. Additionally, payments are often processed within a single business day, whereas SWIFT transfers can take up to a week.

Therefore, before expanding business internationally, companies should select a foreign currency account with versatile payment options to ensure financial efficiency and flexibility.

7. Secure free multi-currency debit cards

A physical and/or virtual business debit card is a valuable tool for international business activities. Depending on the provider, companies can hold multiple currencies and, if necessary, exchange them at low costs. This flexibility offers significant advantages both during the initial phase of expanding internationally and when scaling operations.

Additionally, business debit cards help streamline processes, manage costs more transparently, and provide employees with greater financial flexibility – an advantage for the entire company.

Choosing a free multi-currency debit card can make international transactions more efficient and conserve financial resources. It is essential to carefully review the terms of use and watch for potential hidden fees to avoid unexpected expenses.

amnis – Your partner for seamless international expansion

Expanding internationally into new markets presents financial challenges, especially when it comes to international payments, currency management, and efficient financial processes. This is precisely where amnis comes in. As a global payment service provider, amnis supports companies with local multi-currency accounts, including IBAN accounts in the company’s name, along with virtual and physical business debit cards to simplify market entry in the target country.

A key advantage of amnis is the substantial reduction in costs for international money transfers. Instead of making expensive transfers via the SWIFT network, payments are processed through local networks such as SEPA or ACH – faster, more efficient, and more affordable. Additionally, financial processes can be automated, enhancing efficiency while minimising errors caused by manual handling.

Maximum cost efficiency & complete control over international payments

With amnis, companies gain a transparent and cost-effective alternative to traditional banks. By using multi-currency debit cards, payments can be made flexibly in various currencies, while foreign currency accounts help minimise exchange rate fees and enable direct payments in local currencies. Additionally, businesses benefit from attractive interest rates on business accounts without compromising on security.

amnis facilitates money transfers to over 200 countries and the receipt of payments from more than 180 countries – all through a single, user-friendly banking platform. This allows companies to maintain full control over their foreign currency transactions, reduce costs, and optimise global payments – an essential foundation for successful international expansion.

Get your free demo account now to take advantage of all the benefits.