How Cabinet Start-Ups Conquer Market

How Cabinet Start-Ups Conquer Market

The foreign expansion harbors opportunities, but needs to be well prepared. For many start-ups, opening up foreign markets is a key to success. Many business models are based on some form of digitization and are therefore particularly well suited to international expansion.

How start-ups conquer foreign markets

Good preparation

Expanding abroad often involves a great deal of effort and investment, which entails considerable financial risk. On the other hand, opening up foreign markets offers unexpected scaling opportunities for your own business model. So the decisive question is less whether to go abroad than how to thoroughly prepare for internationalization. This requires an in-depth market analysis, a close look at the cultural, political and legal environment and good financial planning.

RTA cabinets

In-depth market analysis

Even if a RTA cabinets start-up is extremely successful with its product in the domestic market, success in foreign markets is by no means guaranteed. Rather, each target market should be examined individually. In addition to direct competition, companies from related sectors that may be able to enter your business area with little effort should not be overlooked.

Build local network

Even before going abroad, a start-up should try to build up a local network. There are a variety of approaches to this. The classic is hiring local managers or sales professionals. They know the market and already have a local network. Business partners, joint ventures, suppliers and others can also promote market entry abroad. However, all of this must be set in the right direction before entering the market.

Liquidity and financing must be right

Foreign expansion is regularly associated with considerable investments. Foreign companies have to be founded. The first employees have to be hired and products. In this situation, companies that are already successful in their home market and generate stable free cash flow from which these investments can be made have a clear advantage. However, start-ups often lack these. This is why the expansion has to be managed from equity. Nevertheless, liquidity management is necessary. Furthermore, start-ups have to clarify with their banks how payment processing and the handling of foreign exchange is best organized.

Tackle expansion as early as possible

Since this is the only way the business idea can be scaled up, most start-ups plan to expand abroad at a later date. Nevertheless, many founders put the necessary planning on the back burner. First, there are more pressing issues. However, early consideration of plans abroad makes sense in any case.