Over the past few years the pace of globalization has increased pressure on companies to contemplate “when” and “how” they should expand internationally. A frequent question that many business executives are asking themselves are, “I want to target a new geographical area for selling my products/services. What are the necessary steps I need to take before/when targeting these areas?”

These four critical steps are highly dependent on what you are selling and your distribution strategy (i.e. direct or channel). In no particular order:

1. Legal Analysis

Analyze the legalities of what and how you will penetrate the market. If you are a U.S. company, legally you may not be able to “do in Rome as the Romans do” (particularly in Asian or Middle Eastern countries). I highly recommend you research and find a local partner/agent/consultant for the geography you are contemplating.

2. Market Analysis

Conduct a detailed market analysis to include size, maturity, competitors, political and legal environment, pricing expectations, etc.

3. Time to X Analysis

Determine your time to market, time to revenue, etc. Some markets may require a long time to penetrate due to having to build relationships, hire partners, establish a local legal presence, etc. Most markets outside of the U.S. do not work at our same breakneck pace. They believe in building and investing in personal relationships prior to entering into a contractual arrangement. Ultimately, you need to decide how long and how much you can invest in opening up a new geographical market.

4. Strategy Analysis

Many companies want to expand, but then they don’t make the strategic commitment at the senior level to follow through. You will need to incorporate and institutionalize the expansion strategy at the corporate level and then build the respective operating plan to manage the expansion.