Expanding a business is a scary step for any entrepreneur but it can become more complex and give you more sleepless nights when you are expanding abroad.
This may be a huge challenge but if you love the thrill and adventure of being an entrepreneur, then you will do everything you can to succeed. Before you set off to pastures new, here are 4 things to consider when expanding your business internationally.
Cash Flow
Cash flow is what keeps your business afloat. If you can’t pay your bills, your business will soon sink. Make sure you budget enough money to fulfil your expansion plans. Consider that currency rates fluctuate so the price you pay may differ depending on how favourable the exchange rate is. This issue may be largely out of your control but you can help yourself by using a money transfer app to make sure your cash keeps flowing, you can pay international freelancers, and you can cover the costs of expanding your business into new territories.
Legalities
These differ from country to country, so you need to do your research to make sure you don’t fall foul of the law in the country you are expanding into. For example, tax laws can differ vastly, and getting this wrong can be an expensive mistake as it could lead to you being fined or even imprisoned. Employment law needs to be adhered to strictly and you need to consider how you will draw up employment contacts so that you get the best from your employees and don’t make mistakes that could land you in court. It is best to hire experts such as lawyers and accountants who are local and understand the legal technicalities in the market you are entering.
Culture
Cultures are incredibly different depending on what county and region you are in. Just because a sales or marketing technique works in one area doesn’t mean it will work elsewhere in the world. You need to understand what the market is looking for before you can sell it to them, and you will need to research this thoroughly. If you get this wrong, you could find yourself spending a lot of money on marketing or advertising techniques that simply won’t work with the people you are trying to sell your products to. Hiring a local marketing firm can make sure that you get this right from the offset.
Operations
If you want to make your brand stand out from the pack in a different region, then you will have to have slick operations management. There are many reasons to expand into individual countries. You may like the proximity or cultural similarity of expanding into Europe, your brand may suit the American market well, or you may like the low overhead costs associated with Asia. Whichever country you have your eye on, you will need to make sure that you can fulfil orders quickly and effectively. That means that your logistics have to be fast, your warehouses can handle the quantity you need to place, and the product needs to be packaged to suit a local market. Without these aspects of your business in place, you may not succeed.
Get these 4 things right from the beginning and you are more likely to find success in your chosen country.
