Independently whether your company has an international presence or not, it is already competing globally. Even though you might not realise it. With many foreign companies penetrating your local market and the largest percentage of the world’s population living outside of your home country, expanding your business across the borders seems only logical.
Going global is a complex and dynamic process that could disrupt existing business activities. Thus, it is important to gain a deep understanding of your competition, current market trends and develop your business growth plan.
Set your goals.
In order to get somewhere, you need to know where exactly you are heading. Therefore, it seems wise to start with setting your business expansion goals, both short and long – term. Make sure that your goals are realistic, measurable and time-bound.
Market research is probably the most crucial step in planning your international expansion. It will help you to determine what are the top countries for your products and how successful your venture will be. Product gap and market segmentation analysis will show whether there is demand for your product and how well it will sell. In the meantime, SWOT analysis will define your strengths and weaknesses against the competition.
Entry and exit strategy.
By starting your global expansion with the strategy that includes both, entry and exit, you put your company in a more favourable position by getting it ready for legal challenges. The right entry plan will allow your business to act instantly when it is time to build a team in a new market. Meanwhile the exit strategy will help you avoid financial and time loss in case you decide to shut down operations in a country.
Familiarise yourself with local legal and tax requirements.
Failure to do so may result in great financial loss, damage to your company’s reputation and serious legal consequences. Some countries have extremely complicated legislation; therefore, it would be advisable to consult business expansion specialists prior to making any decisions.
Choose your team and hiring method.
We cannot stress enough the importance of human resources in the process of going global. Whether you decide to transfer your current employees, hire independent contractors or local nationals, can predetermine how successful the entire project will be.
Expanding globally can be stressful and overwhelming. It is essential you understand the factors that would make your business successful. Protect yourself from liabilities and unnecessary difficulties by partnering up with a company that understands potential risks and can ensure you 100% compliance.
Reasons for International Business Expansion
If your company is firing on all cylinders domestically, overseas expansion is the next logical step. To say more, it is less of an option and more of a necessity in order to remain competitive in today’s global business.
Entering an international market brings new exciting opportunities, such as:
The best proven way to increase your company’s income is to diversify revenue streams. New customers come with different needs, creating unique opportunities for your business to fill in the gap in the market.
Many countries are extremely interested in attracting new companies. They are ready to offer support in order to fill in the gaps in the local market, augment development and increase employment. You might be in for tax allowances and exemptions, cheap infrastructure and grants.
Greater access to talents
It is not easy to find workers with the right skills and mindset. Overseas expansion grants you access to the top talents around the world who might be hard to find in your home country. Not mentioning that hiring in the emerging countries may cut down your costs.
Improving your company’s status
Gaining the status of an international company is a great accomplishment and upgrade, that will open many doors. Prospects and potential partners will think more highly of your business when they learn you have an international presence.
The old saying warns ‘do not put all of your eggs in one basket’. If your business has one or two areas where it can sell products or services, what would happen if these markets would experience a dramatic change? Expanding your business to the new markets allows you to reach more stability and security.
Although going global has a number of advantages, they do not come without challenges. There is a number of factors to consider before taking your company overseas. However, you don’t have to do it alone. A company that specialises in business expansion strategies, can prove to be an important ally while undertaking new markets.
Bradford Jacobs combines years of expertise and unmatched service standards in European Employment, that will guarantee your business a compliant, cost-effective and stress-free transition into new markets.
If you are considering expanding your business, but don’t know where to start, contact us now to discover your options.
Any questions? Get in touch now!