Expansion into new markets where we have little or no experience may present increased risks.
Breaking into international trade is increasingly important to many growing businesses. New markets, particularly emerging markets, may have different competitive conditions, consumer needs and discretionary spending patterns than your existing markets. Consumers in a new market may not be familiar with new brand you bring, and as a result, the result may be less successful than in your existing markets, and could thereby adversely impact your overall results. You may need to build brand awareness in that market through greater investments in advertising and promotional activity than you originally planned.
Unlike multimillion dollar companies who allocate huge budget along their overseas expansion, SMEs are smart enough to work-on parallely by utilizing a limited resources and budget.