Global expansion is a sign of a successful product or service. If you are thinking about taking your business global here are some tips to help you get there.
Whether your business is small or large in your host country, you might be considering taking it abroad because of recent purchases or clientele. Because of the internet, it seems that it is now both more comfortable and more difficult to expand the reach of your business abroad. However, it is the subsequent end goal when starting a business: to expand and grow globally.
Global expansion is a sign of a successful product or service. There are many fast-growing, markets, and they are often incredibly competitive. It requires a lot of physical and mental work to expand your services or goods abroad, but that shouldn’t stop you. There’s a lot of information at your disposal for this process.
Here are some tips to get your mind thinking global!
Ask Yourself if You’re Ready to Expand Globally
Your business might not be ready to succeed in international markets now, but it could have the potential to with some alterations. However, this is still the first place you should begin: Is your business suited for international markets? Have you found a niche used by everyone?
Maybe if you are in the business of law, technology or cosmetics, the answer to this question is easier to answer. Alternatively, you might think you have a product or service that would thrive in another country, but it might not.
Expanding across borders is a naturally complicated (and expensive) process, and it could distract you from the market in your core country. You need to determine if you have the resources to manage several markets abroad, or whether you need to keep your business centered in one fixated place.
Would it benefit or hinder your business to expand at the end of the day?
Determine Cultural and Language Barriers
Whether you are looking into Latin America, Asia, or Europe, you will encounter cultural barriers. Expanding globally might require a new team of full-time translators, customer service divisions designated to the guest country, or a lawyer from that country.
If your host country is the U.S., it could help exponentially to gather intel from a local person’s perspective before expanding. Culture, ideology, or taste preferences could significantly affect the market for goods or services abroad.
Identify Restrictions and Regulations
Regional restrictions and regulations are complicated enough in a host country, but they can be exceedingly more challenging in a different country. If you want to have offices in other countries, it can be a significant headache. You will need to make sure that you have help in areas like compliance and setting up a corporation. Understand that you might be looking at months of laborious paperwork.
An extra precaution to note for opening an office abroad is the current travel restrictions due to COVID-19. Another thing to consider is your bank compliance and whether you need to have an international bank account arranged for transactions.
Take Stock and Determine Transportation
When selling to other countries, this means entirely different packaging, extra paperwork, additional precautions and sometimes foreign language instructions. The marketing could be completely different and more extensive than what you are used to in your host country. If you have a US-based product, you might need to include instructions when selling to Europe translated into nearly 20 different languages. The marketing tactic needs to be tailored to an international market—specifically for whatever country you are helping to sell to. Don’t be a business who doesn’t do their necessary homework.
As for transportation, there’s a lot of bases you need to cover. You might want to hire an international customs brokerage to ensure that your product is handled correctly. You want to ensure the correct delivery time for your product because mismanaged paperwork can delay a shipment by months.