If you are in charge of a growing business, you may be thinking about going global. It may be the next stage in your expansion plans, but there are challenges ahead. We will examine some of them in this article, giving you a brief overview of the obstacles you will face along the way.
Dealing with a new culture
The way people do business in other countries is not the same as your own. Therefore, it’s important you do research into the country you are expanding into. What is the buying market like? What are consumers looking for? How are products marketed? You should also learn the language, translate your website, and educate your employees. Without research, you can hinder your business rather than help it, as there may be certain taboos within the culture that you need to be wary of. As well as research, you should also hire a local representative to help you deal with any issues around a culture clash.
Hiring a workforce
Do you want to send your own employees over to the country you are breaking into, or are you planning on hiring a team local to the region? There are pros and cons to both, and you need to think through these issues carefully. For example, sending people over from your team is a good idea, provided they are ready to uproot themselves to a new country. Hiring people in the target country is also a viable option, especially if you are creating more jobs in that region, but you will have to adhere to working laws that won’t be the same as your own. Communication is also key. Unless you hire somebody to manage your international team, you will have to find ways to reach them. Mobile collaboration by Librestream is one way, with innovative tech available, but you will need to factor this into your budget.
Checking out the competition
As you would locally, you do need to consider the competition in the target country. If there is a lot of competition for a particular product, you will need to rethink your plans. It’s a waste of time and resources to expand into an already oversaturated market. You also need to think about costing. If the country’s factories are offering cheaper rates for a product, you will need to match this. You need to have a USP for what you are selling, and if you struggle to find one, you will need to re-strategise. Again, research is key, so speak to businesses abroad, get your head around local currencies, and find an inroad into an area where others have not yet capitalised.
Understanding rules and regulations
Before you begin any expansion plan, you need to get your head around the regulations of the target country, ensuring you aren’t making any blunders that could prove catastrophic to your business. We have already touched on employment laws, but there is so much more to consider, such as rules surrounding the importing and exporting of goods, tax laws, and other legal considerations. To help you, it’s worth getting legal help in your own country as well as the country you are targeting, to formalise you with the rules and regulations you need to follow.
There is much more to consider when going global, but we hope we have provided a touchstone for your thoughts. Commit to research, carefully formulate your plans, and you should find success as you expand your business.