Start Up, Part II

After covering off some of the basics in creating an international business (Start Up, Part I), it's time to look at the 'How.'

Do you have any contacts?  Is there anyone you know that can either connect you to the consumer or that can assist in part of the distribution or supply chain?  Friends, relatives, or other people that share your passion can offer help and insight. 

How will you provide the product or service?  By mail?  Digitally?  Will product need to be produced locally, or can it be made centrally and shipped internationally? 

In this case, a 'where' raises one other question: focus. For example, you might think that China is the largest untapped market for your business, so you'll jump right in. However, can you speak Chinese?  Will they use what you offer?  Can you reach even those who speak English (and, chances are that they'll have higher disposable income anyway, so you might be on the right track)?  But a market like China could be TOO big. It might be best to focus. Maybe, through your research, you have found that Hungary, for example, has a specific demographic that is very similar to your core and it is growing. Focus. And the learn Hungarian. 

Next, how do you reach them?  Direct email? Facebook? Twitter? Tumblr?  If these are affective (and sometimes they are not), then go to town. For its impact on current events, Twitter is great because it was used to organize political demonstrations in Iran, Tibet and China. But personally, I don't care to read every little thing that pop's into people's brains (except for ESPN's Bill Simmons' feed -- fabulous!).  

Connection and communication is the real trick.  And, how do you keep them abreast of updates on your business, so that it's relevant to them and not lost in the constant noise that's being fed to us, particularly via Facebook's new profile setting (see my post, 'The Death of Facebook'). 

The most important thing in reaching that international audience, though, is having the ability to speak to them, whether it's common language, common interest or common experience. Can you take what excites you most about your business and convey it to your international audience so that they GET it? 

Once these questions are answered, it's time for the next phase: going into business. Start-Up, Part III  is coming soon...

Start Up, Part 1

Building a business from the ground up is a challenge in and of itself. It requires a demand for a product or service and, except for possibly the tech sector, these smaller start-ups target niche consumer segments, which are often localized, i.e., where the entrepreneur resides. How does one take that fledgling idea and see if it can resonate internationally?

First, check its relevance and reach. Is there a need for this in Shangai, Munich, and (/or) Johannesburg? If not, what would? Does the business need to then be refined or expanded? So, do lots of people do it? Or just some, but you know who those people are?

Next, are you involved in the community. I’ve known people who have created small apparel brands, were very involved in the community of their target market, but had never been exposed to the apparel industry before, so things like process and pricing were completely foreign to them. They might be able to build product that has a demand, but without enough research, there will most likely be significant associated costs, and the learning curve is steep. So, know your market and know your business.

Does it have longevity? Is it the current equiviland of the 8-track, or is it the running shoe? Is it recession proof, or will people only purchase when things are good? In the sports industry, it was argued that even if the economy was tanking, runners would keep running, basketball players would keep balling, etc. It was a mental release for them, an escape, particularly to deal with stress that could come with a poor economy. And when things were going well, they would buy more running shoes!

Are there global institutions also focused around what they are doing? Are others in the world working towards similar goals?

Answers to these questions will provide some next steps in strategy and business plan formulation.

Stay tuned for parts II and III, coming out over the next week.