Understand the Landscape and Be Relevant in Your Approach
Far from the industrial complex of major cities, lay towns or villages are central to the culture of many emerging markets. Understanding life outside the city, and the lifestyles of your potential workforce in remote locations, is important. Emerging markets require strategies specific to them. Distribution and logistical practices found in San Francisco may have no real application in other places around the globe, especially where there is basic infrastructure — so be specific and relevant.
Accepting your limitations will open your eyes to creative ways of accomplishing what is necessary. Remember, understanding risks is vital to overcoming them, and keeping ahead of potential problems is the key to success. A successful business is one that is thriving, not merely surviving. So consider some elements of creative risk management that could truly rework and recover a hopeless situation.
Be Flexible. If you aren’t ready to bend, you’ll break. Remember, just because it’s a normal business practice in the West doesn’t mean it makes sense in an emerging market. Local cultural ideals, language, and nuances are the scaffolds on which you must build in order to craft a successful venture.
Be Empowering. With the diversity of emerging markets, cultures and philosophies, be sure to give your team the ability and freedom to speak openly. This will not only help with identifying risks but empower them to solve problems proactively.
Be Wise. Know your team, your networks, your partners, and your people. Incentivize risk management within the confines of the market center. Your team will catch the vision of how vital mitigating and managing these risks are to the organization and they’ll perform accordingly.
Not everyone is able to enter into business in an emerging market, but for those who are patient and stay the course, great returns can be had. Learning who to trust and finding the help you need is the key to tackling the plethora of potential risks found in the glorious and profitable scope of emerging markets.