For many companies, global expansion is an important means of increasing market share and profits, and building international brand awareness.
Expanding into foreign markets is potentially lucrative, but requires planning and vision for the future;
Here are five tips to guide your international expansion:
Do enough market research and analysis.
Comprehensive market research and analysis forms the backbone of all business endeavors. A tedious and time-consuming process, thorough market research is often worth it because it provides valuable information about the profitability and viability of your product or service in your target market, other competitors, and the demographics of your target customer. The results of your marketing research and analysis often provide insight into how your business can tailor its products / services or marketing strategies to your target market.
Check local licensing laws and other regulations.
Different countries have different laws and regulations. A thorough study of these foreign business laws is essential to ensure your business complies with local laws.
Many countries, such as Australia, Canada and Hong Kong, have minimum wage laws, while others have different minimum wages agreed between unions and employers. The amount of corporate tax your business should potentially pay also varies from country to country. Some countries, such as Switzerland and Singapore, are considered tax havens by global companies and investors. The amount of taxes collected is often an important factor.
Be aware of possible bureaucratic red tape
When planning and preparing for the global expansion of your business, various administrative tasks and processes often come up. Applying for a business license is often a lengthy process that requires a lot of legal documents and information, such as your type of business.
Additionally, certain products may be subject to customs and export restrictions, and your business may need to obtain permits and legal documents to enter foreign markets. Depending on the processing time, it can take a long time to get approved. To become familiar with business activity in another country, it is wise to seek trusted local advice.
Start with a market from scratch and focus on an individual limited range of products.
Global expansion is a costly but potentially rewarding endeavor. According to Economy Watch, it makes sense for companies to focus on one or a small number of markets first. As American business mogul Bill Gates said, “My success is certainly partly due to my focus on a few things.”
Focusing your resources on one market initially also means that your business can conduct rigorous research, test these new markets, and adapt accordingly to ensure your business expands globally. Establishing a limited range of products with a competitive advantage in your target market greatly increases the likelihood of success.
Use an effective international payments strategy
Sending and receiving international payments is often problematic. Time zone and exchange rate differences interfere with this process. When planning business ventures abroad, this helps you decide which primary method you want to send and receive funds internationally.