Your business has been doing great and you’re probably thinking of all the ways how you can develop it further. If you believe your company has reached its peak in your country, it might be time to consider going global as this step might bring you more exposure and customers. However, there are many factors you should take into account before deciding to make this move, from choosing the right place to dealing with finances. Take a look.
Decide where you want to expand
Going global does not mean that you have to set up offices or export your products to every single country in the world. You can start by picking one country and then expanding your reach once you make it there. Think of a few places and write a pros and cons list to see whether any of them are the right choice for you.
Look at the infrastructure of those countries. Will you be able to find good accommodation? Do you want it to be Western-like? Also, check the cost of living. Inquire about the speed of internet, reliability of hot water and other utilities. What is the state of the roads? If there are some things you cannot work with, look for another place.
You need to consider the economic and political stability of these countries as well. Will you feel comfortable and safe there? Is their market stable? Does the country have some controversial stances and laws which could get you in trouble with your current clientele? Make sure you do your homework before making your decision.
Conduct market research
Once you have found a few places which could be good for the first step of your expansion, you should do thorough market research. A market segmentation analysis can help you determine whether your product will sell in a foreign market. Moreover, analyzing the market will let you know if there is a demand for certain products.
If you can, visit the country and see first-hand whether this option is good for you. Maybe you could even test your products on a smaller scale to see how you would do. It can be hard to get customers if there is a local brand offering the same services and products. If there is no chance of you getting on the market, consider other options.
Work on understanding other cultures
Respecting and learning about other cultures is crucial for business success. Do your research on their customs and etiquette. In southern Europe, for example, you can expect more personal conversation while in the north, people chat less and get straight to business. Familiarize yourself with the local practices so that you do not insult your potential partners. Moreover, keep in mind that body language is not universal, so make sure you do not offend them.
If you’re from the US and want to expand to Australia, you will not face a language barrier for the most part. However, if you decide to go to Japan, the Middle East or South America, for instance, you should try to learn some basics of their language as that will show your potential business partners that you respect them. Still, you should bring your own interpreter to make sure your interests are well represented.
Develop a business plan
Seeing as how every country is different due to various cultural, economic and market conditions, you need to develop a localized strategy and good business plan. Establishing your short-, medium- and long-term goals are crucial; just make sure they are reasonable so that you can measure your progress.
Another thing you need to think about is the business model you will implement. Will you be opening subsidiaries in foreign countries or setting up joint ventures and working with distributors and representatives?
Cover the legal aspects
Before you start this process, however, you should make sure you understand the legal side of this endeavor. In order to avoid unnecessary risks, put strong legal practices in place. Check all the licenses, certificates and documents you must have. Moreover, find a reliable lawyer who can advise you on immigration laws and dispute resolution.
Don’t forget to look into the costs and restrictions of shipping and importation, as there are complex rules concerning these issues. Also, review labor laws in addition to employment practices and regulations as well as packaging standards.
Deal with finances and taxes
In order to know how much you can expand, you need to be aware of your budget. Make sure you do not go over your limit because that can spell disaster for your entire company. Consult with experts to see how much money it would take to see this realized.
If you think that you will not be able to do it without help, look into loans and see whether there is anything that could help you achieve your goal. Moreover, go to various foreign government sites to see whether any of them offer business grants.
In addition, you cannot forget about taxes. You should deal with this early on; that way, you’ll ensure timely reporting. Your best course of action might be outsourcing this aspect of your business to local experts, as it is really easy to find reliable accountants in Sydney, Hong Kong, Lisbon, or wherever you decide to open a new branch. They already have experience with the local laws and regulations, and can deal with payroll, accounting, and taxes for you.
Make sure your product is ready
Lastly, you need to ensure your product is ready for the market. Review regulations to see whether it meets all the requirements. It might also be a good idea to look into a trademark or patent application.
Moreover, make sure you meet all local standards concerning quality assurance and compliance. Determine if you need to localize your product. Pay attention to the translation into the local language, or any other as many areas require you to put a few languages on the packaging.
Going global is definitely not a small endeavor, so make sure not to overlook anything, because even the smallest of details could be detrimental for your company. Talk to experienced professionals to make the most out of this undertaking. Good luck!
