Your company is successful: you have created a solid customer base in the Netherlands with an innovative product. Perhaps digital innovations have enabled you to scale up production significantly. You are increasingly considering the next step: doing business on a global level. But beware, doing business internationally is no small undertaking. What should you consider if you want to expand your business globally? In this blog, we give you four suggestions for profitable exports.
Tip 1: Understand your market
Certainly, as an entrepreneur, you sense where opportunities exist. But it is not wise to rely solely on your instinct. Successful international business starts with thorough market research and competitive analysis. Are your potential customers really interested in your product? What distinguishes you from other suppliers? And: how many competitors are already operating in your target market?
Many entrepreneurs find it difficult to answer these and other questions objectively. One option might be to have an intern with a “fresh perspective” work on this project. You can also take advantage of the opportunities offered by the Starters International Business (SIB) incentive scheme for companies looking to move abroad.
An additional tip: Contact some existing clients and ask why they do business with you specifically. This often provides a clear picture of where you excel. Information that can then come in handy if you want to grow internationally.
And: take another critical look at your current markets. Perhaps you can — especially if it’s mainly about increasing your sales — first try to increase your market share there.
Tip 2: Consider cultural aspects
Most Dutch entrepreneurs understand that doing business with China is different from doing business with a customer “around the corner. But beware: even between the Netherlands and neighboring countries such as Germany, France and Belgium, there are often significant cultural differences. For example, when it comes to negotiating and communicating. This affects the entire sales process and your expressions. Consider carefully what to pay attention to.
Therefore, study the differences carefully in advance. Because “mistakes” in this area can make just the difference between a successful deal and an aborted one. Note: Don’t make the mistake of having only yourself or your sales teams undergo intercultural communication training. Once your international prospect has become a customer, it is helpful if the inside sales team is also aware of cultural differences.
Tip 3: Consider delivery and payment.
Have you sufficiently mapped out how promising your target foreign market is? Are you well aware of local cultural norms? Then you’re not there yet. A well-thought-out export plan also addresses delivery and payment. Will you work with a distributor or agent, or with your own representative or sales office? How will you arrange your logistics (and transport insurance)? And: what payment terms are you going to use? Good (legal) agreements around issues such as delivery and payment are inextricably linked to a successful expansion abroad.
Tip 4: Seek advice from experts
Good preparation, especially when exporting, is crucial. Fortunately, there is a wealth of expertise and advice available in the Netherlands, and a considerable amount of it is free (or almost free).
- InnovationQuarter helps companies in South Holland from the initial orientation and preparation phase of their internationalization plans.
- Together with DutchBasecamp, Innovation Quarter also offers other, sector-oriented programs (such as Globaliser or the Export Accelerator Program).
- InnovationQuarter and other regional development companies offer a lot of information and support, for example in the form of online missions, webinars and matchmaking.
- The Rijksdienst voor Ondernemend Nederland (RVO) offers an enormous amount of information about international business on its website. So do agencies such as the Chamber of Commerce and the Tax Office.
There are also many private parties you can turn to for training and courses, for example on legal aspects and intercultural communication. Invest in your own knowledge and that of your employees if you are seriously considering operating internationally.
Want to know more about international business?
Do you have plans to go international with your company and would you like to have a no-obligation sparring session on how Digitalzh and Innovation Quarter can support you in scaling up internationally? Please feel free to contact Marit Kuypers at marit.kuypers@innovationquarter.nl.