If you are an entrepreneur, there has never been a better time to embrace the world of international trading. The global market, as we know it, has shifted paradigms in a massive realignment of the way business is conducted. Emerging markets across the globe are the new driving force behind the world economy and successful entrepreneurs know just when to jump in.
So, what's the key to success in international trading within these emerging markets? The answer may very well go beyond just strategy and execution, long-term coherence and a relentless pursuit of top-line growth. It is, after all, the dawn of a new era, heralded by emerging markets in South America, Asia and Africa. This shift is generating countless new business opportunities, increasing competition, with multinational companies all forcing established domestic players to seriously rethink their strategies.
It's a global thing
There's no doubt that the business world is now more international than it has ever been, thanks to the growth of the Internet and emerging economies in what were previously considered third-world nations. It is not that entrepreneurial companies must take advantage while the opportunity exists; as the cost of development soars and produce life-cycles decrease, it is essential to establish a presence in as many markets as possible, just to survive. This is particularly true for newer businesses.
Companies that were previously confined to their domestic base are now looking abroad to maximise their potential and are venturing into countries that were previously thought to be virtually worthless in terms of potential profitability. Many of these regions of the world are now growing and their governments are positively encouraging outside investment.
Widening the breadth
As entrepreneurs consider going global, they need to make a firm commitment to do so. However, this requires resources, primarily in the form of cash and local expertise. Don't forget that cash is king, especially in emerging international markets. So, don't let the lure of a promising new endeavour get the best of you.
It is also time to develop new managerial and leadership competencies within your organisation. Volatile governments and shaky currencies sometimes blight emerging markets, so you have to be vigilant. Your management and leadership teams need to be rebalanced and more competent than ever. However, you have to remember that the bigger the risk, the bigger the reward.
Moving ahead
Two of the most prominent emerging markets are Africa and the neighbouring Seychelles islands, where investors like Mukesh Valabhji have already taken the plunge. Until fairly recently the very thought of investing in Africa might have be enough to make investors break out into a cold sweat; however, the comparatively strong performance of some of its developing countries has shown it to be more than just a commodity supercycle. Africa has improved macroeconomic management principles and now supports a growing middle class desperate for a whole range of consumer goods.
When investments are made wisely, they tend to produce high returns in these fast-growing markets. As the global market shifts even further to focus more heavily on emerging markets, UK and European entrepreneurs should be ready to take advantage before it's too late.