In tip #1 of our Going Global Countdown, we reviewed timing and timelines.

Tip #2 is about choosing markets. In companies starting to think about global expansion, one big question is on the tip of many tongues:

Which countries/regions should we target first?

There are around 200 countries in the world and, by some measures, 6,900+ languages. While you’re probably not going to sell in every country on earth (and certainly won’t localize your website into those thousands of languages), there’s still an overwhelming number of good potential markets and languages to examine. With limited time and resources, even three equally good-fit options can leave you feeling stretched a bit thin if you’re only looking to start with one.

To start whittling your list, here’s we suggest you ask yourself:

• What does the current competitive landscape in that region/country look like? Do as much basic market research as you can. Even if it doesn’t look like much from the outside, don’t underestimate your competitors’ cultural or local industry knowledge.
• Where are your customers already coming from? Some quick analysis will reveal the countries of origin and languages of your current customers. Maybe French users are interested in your hospitality site, or you see frequent web traffic from Japan despite your ecommerce site only being available in English. Don’t ignore these useful insights.
• After doing research, is your product suited for local tastes, or will it fail to adapt well? As a simple example, if you’re selling cars in a country where the vast majority of the population commutes on foot or via public transport, you might want to look elsewhere.
• How much market share will you gain? Will what you gain in this new market be worth the cost?
• Will you come up against considerable regulatory or licensing roadblocks, and are you equipped to handle these challenges? Many companies that are currently trying to disrupt an industry or create a space of their own often face this challenge. A common example is with ridesharing—in this area, locally popular companies like Uber and Lyft face concerns not only in their home country, but also abroad. If you’re in a similar spot, ask yourself if it’s better for your company to try and push through, or if you’re better off building in a country or region where the path isn’t as steep.
• Are you comfortable with your target market on an everyday, cultural level? Can you successfully communicate in the local language, or can one of your partners/colleagues? As you attempt to break down barriers with your product and service, make sure that you have a plan to get to know the country’s business preferences more intimately yourself.
• Other core considerations: the country’s infrastructure, tax system, internet penetration rate, GDP per capita and political stability, among others.

Tomorrow we’ll help with what follows the market selection process: defining what you’ll sell and how it might change from your current product or service.

Read all of the tips in Gengo’s Going Global Countdown:

• #1: Choose your timing and timeline
• #2: Research and choose target markets
• #3: Define your offering and level of service
• #4: Build an internationally-minded team
• #5: Craft a working translation/localization strategy
• #6: Select the best translation tools and services
• #7: Internationalize properly
• #8: Translate cleanly
• #9: Check, double check, launch
• #10: Create a great global growth machine
• #11: Round it out with multilingual support
• #12: Kaizen! Optimize

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