Veteran Entrepreneur, Essay Example

When considering expanding your business into a global enterprise and thereby embarking upon international trade, you need to consider the following issues:-

1. Develop a Business Plan – You will need a structured plan of attack for expanding your business into international frontiers. As such you will need to determine whether you have adequate market penetration funds, research and development funds and expertise, capital expenditure plans for establishing regional offices and overseas agents.  You may need either support of a Bank or Venture Capital funding.  Either way you will need to demonstrate a professional approach to business expansion via a good business plan that potential investors can support.
2. A Strategic Planning Approach – Have a strategic approach to business development in international markets.Consider the “Balanced Scorecard Approach” that enables you to consider the main pillars of your business and how employees can support the vision and mission accomplishment.  “The scorecard helps managers to clarify their vision for the organization and translate that vision into measurable actions that employees can understand” (Hillstrom, 2010).
3. Know your Markets – Understand the markets that you can penetrate and take competitive advantage. Only enter those areas that offer the firm significant advantage.  This involves market research and is best accomplished by experts that can profile your business to specific market areas.  Don’t experiment here! It is vital that you get this right as your firm’s image and credibility is at stake.  Equally you don’t want to get wiped out by a fierce competitor that you cannot fend off.
4. Understand the Culture – Do business from strength by understanding the business culture of your market areas. This is vitally important in South East Asia with countries like Korea, Japan and China.  Those that recognise the cultural distinctions and abide by them are far more likely to succeed.
5. Venture Capitalist support – If you do not want to go it alone, and then seek out a strategic financial partner. As such you have to go into this in a shared partnership fashion and be prepared to lose some vested control of the business. “There is, however, still a very clear role for venture capital, and that is in helping a company move from initial product to huge scale.  This still takes significant capital” (Brisbourne, 2010).

There is no doubt that Venture Capital Companies have promoted tremendous growth in the development of small business operations.  Between 1972 and 2000 venture capital firms raised over $104.8 billion.  The TV program ‘ Dragons Den’ is an example of Venture Capitalists that invest in business growth opportunities.  Often extremely successful business people that offer investment and business expertise “Venture firms play an active role in their investees’ board of directors, providing oversight, strategic advice, and credibility to the company.”  (Jacobs, 2010)

6. Export Grants – The Federal Government supports US businesses that wish to

expand overseas and it is possible to get financial support and expertise. Government have an amazing amount of money set aside for the development and promotion of Export and overseas business development schemes.  Good sources to gain information are local Chambers of Commerce, Export Business Agencies and branches of State or Federal Government.  Monies are allocated as either direct award grants or on a loan basis similar to Banks.  It is imperative to have a well prepared business plan to accompany any grant application. Equally if you can prove that the growth plan increases local employment or contributes to a community development, then this will considerably strengthen your application.

Works Cited

Brisbourne, N. (2010). The venture capital model – how building a company has changed. Retrieved 8 9, 2010, from Equity Kicker: http://www.theequitykicker.com/2010/03/02/the-venture-capital-model-how-building-a-company-has-changed/

Hillstrom, L. C. (2010). Balanced Scorecard. Retrieved 8 15, 2010, from Reference for Business: http://www.referenceforbusiness.com/management/A-Bud/Balanced-Scorecard.html

Jacobs, P. K. (2010). Venture Capital: Spurring Innovation and Growth. Retrieved 8 9, 2010, from Harvard Business School: http://www.hbs.edu/entrepreneurship/newbusiness/2002spring_6.html