How to help a local business grow
Getting a local business off the ground in your area requires a certain set of skills, such as the ability to meet and greet customers in person as well as a strong sense of commitment to place and community. But for those local entrepreneurs who want to go that one step further and grow their business beyond regional borders, a separate set of skills is often required. Navigating the national or global economy is a tricky job – and going beyond Devon or into a further destination can be hard. Here are some tips on how to do it.
Investment capital
There’s no doubt about it: businesses that grow are often the same businesses that have a substantial amount of cash behind them. Cash flow tends to be a significant problem for local businesses, which in turn can prevent them from growing. If there is not enough cash in the bank to pay suppliers, for example, there is unlikely to be anywhere near enough to pay to break into foreign markets! For a local business looking to grow, overcoming this obstacle is pretty much essential. Venture capital funding could be a way to do it, while angel investors – who tend to be individuals – may also be able to help.
Specialist advice
External support doesn’t have to be just financial. Growing your local business abroad will also require you to get help from agencies that are specialists in the regulatory and cultural frameworks of your new proposed destination. This could be anything from navigating the NMPA (National Medical Products Association) rules for biotech firms in China to ensuring that your marketing copy is translated into French and German for expansion into the European Union. Whatever it might be, don’t be afraid to source help.
Know your market
Finally, a note of caution: it’s important to remember that what works in Devon or elsewhere will not necessarily work in every other market in Britain or around the world. There are a multitude of factors affecting market demand for certain products and services, and barely any two places are the same. It is essential for you to conduct international market research to understand the important factors that will help you evolve into an international business that still retains a localised stature.
However, it’s not always simple. Take artisanal food: this is the sort of product that, while valued in rural counties, may be devalued in big cities due to the wide availability of cheap food choice there. In other cases, though, artisanal products may do well due to the gentrification of many major cities. Therefore, before pouring time, effort and hope into an expansion project for your local business, it’s important to carry out some intense market research.
Not all local business owners want to expand their horizons beyond where they currently are, and that’s understandable. However, the good news for those who do want to spread into new markets is that there are plenty of options. From market research to gaining investment, transforming your local business into a national or even global one is certainly possible.
