Five ways businesses can succeed in emerging markets

With emerging markets predicted to grow to 70% of global economic growth by 2030, ambitious entrepreneurs looking for business longevity should turn their attention towards developing economies. Providing access to millions of new customers, the opportunity to vastly increase sales and a chance to capitalise on thriving new economies; the benefits of expanding your business into these emerging markets are clear to see.

However, doing business in new economies is not like doing business in the UK. There are new challenges to overcome, and a host of potential problems that could derail any business plans that haven’t been thoroughly through. If you’re ready to take on the challenge - and reap the rewards - of doing business in emerging markets, here are five things you need to get right to ensure success:

1. Build a diverse team 

There is growing evidence that businesses which champion diversity do better than those which don’t, with benefits including increased profits, more innovation and faster business growth. Diverse teams are also essential for companies who want to sell to emerging markets. To be successful internationally, it is vitally important that you understand different cultures and how to communicate with them - the most effective way to do this is by diversifying your own team.

Hiring people who have lived experience of the culture you want to access will help break down barriers, remove cultural biases and overcome stereotypes, enabling easier entry to new markets. In fact, analysis has found that a team member who shares a client’s ethnicity is 152% more likely to understand that client’s point of view; an essential factor for forging new partnerships.

Our world is now better connected than ever before, so take advantage of this and hire team members in the countries you’re looking to grow into. There’s no better replacement for someone who is living in the area, plus local employees will usually have invaluable access to local networks and a wealth of knowledge of how to get things done.

2. Learn local regulations

Each country has a different set of regulations for doing business, so make sure to do your homework and learn exactly what is required for the territory you are looking to move into. These could include laws on compliance, taxes, employment, licensing and a whole host of other regulations we don’t have to consider when running a business in the UK.

It’s critical to understand the correct business processes and procedures to ensure your strategy will be compliant. Not getting this right at the start could lead to some very big problems further down the line. Staff at the Department for International Trade are based around the world and can be a good place to start for help navigating the local regulatory landscape.

3. Invest in technology

Keeping up with the latest technological advancements is vital when working in emerging markets. The rise of global connectivity has made having reliable technology particularly important when considering communication and relationship building, as connections need to be dependable to ensure efficient conversations can be had with key contacts in different countries.

Having good technology will also help increase efficiency across your systems, services and products, allowing you to modernise and streamline your processes for more productive day-to-day business operations. This increased efficiency will help reduce costs and free up your time to focus on growing your business in these new markets.

4. Set realistic goals

Any business owner knows the value in having a plan. Before starting your expansion into emerging markets, you need to make sure you’re fully prepared and have considered every aspect of the task ahead. While international expansion is undoubtedly exciting, it requires a lot of time, patience, investment and a strong value proposition.

Ensure the goals you’re setting are realistic by making sure you can detail exactly what you’re hoping to accomplish, how you are going to finance your plans, what skills you need to learn, what your expectations are - and if they’re attainable - and if you’re prepared for the upheaval of working in different countries, time zones and unfamiliar cultures.

5. Build flexibility and resilience 

Finally, the most important factor for building a successful business in emerging markets is remaining flexible and building your own resilience. It’s extremely likely that what works in your current market for your UK customers isn’t going to apply for your new international client base. Being able to pivot your plans, products and expectations will help you remain agile as you adapt to the changing landscape of new markets.

Similarly, growing your business in an emerging market will result in several bumps-in-the-road or even setbacks. Therefore, building your own resilience is key - chances are that, as an entrepreneur, you’re well practised in flexing your resilience muscle, but using those skills to face any challenges head-on will be more important than ever as you learn how to navigate this new environment.

Expanding your business into emerging markets is one of the most exciting steps you can take as an entrepreneur. While the task can seem daunting, and is undoubtedly complex, if you do your research and make sure you have a solid strategy you will be in a great position to reap the rewards.