Broadly examine and think about the aspects related to your company’s internationalisation. Prepare an internationalisation plan and update it regularly.
When your company is about to enter the international market, familiarise yourself with the Team Finland network. Team Finland is a network of public agents offering internationalisation services for companies. The network includes the Ministry of Economic Affairs and Employment, the Ministry for Foreign Affairs, the Ministry of Education and Culture, Business Finland, Finnvera, Finnish Industry Investment, ELY Centres, the Finnish Patent and Registration Office, the Finnish-Russian Chamber of Commerce, the Finnish-Swedish Chamber of Commerce, VTT Technical Research Centre of Finland, VTT, Finnfund, Finnpartnership, and Finland’s cultural and scientific institutions.
Consider which needs your company’s products fulfil and which market would have customers for them. Find out whether your business model and products are competitive in the area. You can receive help from operators such as a business development company in your region and Team Finland.
Decide whether your company will manage its operations from Finland or operate in the target country. You can operate in the target country through your own company or a partner company. Familiarise yourself with the legislation, customs statutes and tax practices in both Finland and the target country. Note that the operations may be subject to restrictions or permits.
Draw up an internationalisation plan in writing. Look for necessary partners and networks in the target market. Familiarise yourself with the market analyses and business culture of the target country. For instance, embassies, Business Finland and the statistics on foreign trade by Customs can help you with this.
Find out how much funding you will need. You can apply for public funding from, for instance, Finnvera, Business Finland and the ELY Centre. Banks and investors provide private funding.
The plan typically includes the company’s mission and operating form in the international market. It also indicates the company’s needs and means for getting funding as well as the aims and predictions for internationalisation.
The contents of the internationalisation plan are affected by issues such as the company’s stage of internationalisation. If you are seeking funding, also take the funding provider’s requirements into account in your plan.
In your plan, give reasons for why your company is looking to enter the international market. Define goals and necessary resources. Explain what your company offers, who are its customers and how it will respond to competition.
Determine how your company can engage in profitable business activities. Find out which market entry approach and operating mode are suitable for your company. These may include direct export, distributors or the company’s own sales office.
Calculate how much working capital your company is going to need. Find out when the company’s revenue is recognised as profit, what kinds of investments your company needs and where it can get the necessary funding.
Estimate how and in which time span your company will meet its goals for internationalisation.
The internationalisation plan makes expanding your company’s business abroad a goal-oriented and concrete process. It also makes it easy to communicate about the measures to the company’s staff and funding providers, for instance.
Funding providers typically require you to attach an internationalisation plan to your funding application. In some cases, it is enough to enter individual details indicated in the plan in the funding application form. The amount of details required in the information depends on issues such as your company’s stage in the internationalisation process.
You can also receive funding for preparing the internationalisation plan itself, for example from Business Finland or ELY Centres. In drawing up the plan, make use of the help of experts, such as business development companies in your region or organisations belonging to Team Finland.
Use your internationalisation plan actively for help in your company’s international activities. Remember to also always keep it up-to-date.
Succeeding in the foreign market requires a long-term financial investment from your company. Prepare that it will take time for your company to make revenue. Building your competence, products and strengths takes time. Success often requires resilience and patience.
To improve your company’s status in the new market area, you should actively follow the market. Aim to use your observations to recognise new opportunities and predict what is to come. The established position and profitable business your company has achieved in the domestic market also improve your opportunities for success abroad.
In order to succeed in the international market, develop solutions tailored to the customers and distribution channels in the target market. Take the local legislation and customs statutes into account. Remember to also prepare for copyright and product liability issues.
Also familiarise yourself with the preferential trade arrangements in the EU and the target country. They may provide you with a competitive advantage in the target market. For example, if you export clothes manufactured in Finland to Switzerland, you will get preferential treatment. For more information on preferential treatment, contact the Finnish Customs.
You can ask for help and support for finding success in the foreign market from the Team Finland network or the business development company in your region, for instance.