Launching a small business is no small feat. Beyond the excitement of bringing an idea to life and entering the market, the real challenge lies in finding new leads and managing cash flow. Achieving profitability often feels like a distant goal amid the daily hustle to break even.
Once your business is up and running successfully in the UK, the next hurdle is sustaining and growing it. Expanding into overseas markets can be daunting. According to PayPal’s 2024 Business of Change report, which surveyed 500 small and medium enterprises, 32% of UK small business owners lack confidence in international sales.
While uncontrollable factors, such as global pandemics and rising energy costs, can impact your business, focusing on what you can control will enhance your chances of thriving internationally.
Here are our top tips for going global:
1. Establish Why You Want to Expand
Begin by understanding your motivations for looking overseas. Are you aiming to compete with similar companies that have expanded and gained a larger market share? Are you trying to attract new customers outside your current market, or diversify your customer base to mitigate domestic risks? Clarifying your reasons for expansion will help you strategize effectively.
2. Assess Your Readiness for Expansion
Evaluate your current business model to identify areas for improvement. This could involve offering new or refined products or services, enhancing the customer experience, or targeting different audiences. Reflect on your original vision and objectives to determine if you’re meeting them and how new markets can help achieve your goals.
3. Identify Target Markets
Research competitors to understand where they are expanding and what products and services they offer. Narrow down your target markets based on alignment with your business objectives. Conduct thorough market research to build a solid foundation for expansion, and establish a budget and timeframe for this growth phase.
4. Diversify Your Payment Options
Customers prefer quick, simple, and secure payment methods in their own currency. The PayPal Complete Payments platform, recently launched in the UK, accepts a wide range of payment methods, including digital wallets like Apple Pay and Google Pay, as well as international credit and debit cards. Offering flexible payment options can improve checkout conversions by removing barriers.
Vincent Belloc, Managing Director of PayPal UK, states: “At PayPal, we recognize the challenges British small businesses face with international sales. Our focus on enabling cross-border trade for UK SMEs is a key differentiator. PayPal Complete Payments provides faster access to over 140 currencies in a single wallet, with no account minimums and no need to manage multiple accounts. Additionally, it offers 25 settlement currencies and business relationships in more than 200 countries.”
5. Ensure Peace of Mind for Your Business and Customers
Entering new markets involves navigating unfamiliar regulations. PayPal Complete Payments helps ensure compliance with the latest market regulations, creating a seamless global selling experience.
Moreover, today’s shoppers expect timely delivery and continuous tracking of their packages. Providing package tracking is essential, offering convenience and transparency to customers worldwide, and enhancing their overall shopping experience.
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