Companies expanding into foreign markets want to make sales as quickly as possible. However, when they don’t make a sale in the first 6 months, they become disillusioned with the market, upset with internal and external sales channels, and look to place blame
While no matter what a company’s strategy is, there is never a guarantee that you will ever sell a product into a foreign market, the leading cause of a failed market entry is the result of companies underestimating the time and cost of expanding into a new market, where on average it takes between 24 to 36 months to realize any meaningful sales.
Additionally, a successful market expansion program not only requires a company to have the experience and the skills of providing quality products or services, but as importantly they must have the ability to build credibility and trust which requires critical “soft skills” that include patience, good communication skills, and a willingness to understand and adapt to another business culture.
Rauch Ex-Im together with U.S. based government and private sector strategic partners, provide specially designed programs and advisory and management services that assist companies in navigating and managing the risks, practicalities and nuances associated with their foreign market expansion.
When expanding into new markets, it is imperative to plan for the associated investment required, which can be challenging when there is no one size fits all in terms of cost and time estimates for new market entry.
Costs and time will be determined by the specific actions you need for your market entry. Consultancy, translations, legal, product adaptions, identification, vetting and engagement of sales and distribution networks, are just a few examples. In summary, market entry costs and time, are dependent on the type of offering and complexity of the market being entered.