Businesses with solid global strategies are more likely to succeed compared to a company without a plan in place. International expansion is not a walk in the park. It takes skilled research, ample capital and plenty of time – especially if you decide to go it alone.
Using Foreign Subsidiary as a Service can alleviate some of the pitfalls, but it’s still crucial for business owners to consider the following must-haves within your global strategies to experience a successful transition overseas.
Most Important: Develop a Real Strategy, Not a Tactics List
When deciding to go global, you need to develop a long-term plan that matches your already established corporate vision and mission statement. Successful companies enter their desired market with a polished action plan. A global strategy needs to include the following:
- A firm understanding of the country’s culture and how that relates to your product or service
- Commitment from all members of the executive team
- Knowledge of the time and financial commitment for exiting the country
- Plans for future investment and expansion in the new location
- Understanding of the financial implications, including international payroll, for offshore employees
Successful Global Strategies Include a Thorough Market Test
It’s a big mistake to enter a new country without testing the waters to ensure your business model will succeed. You will obviously not know the results of your establishment until you’re fully operating in the new country, but you can at least gather an idea after a proper market test.
- Study your competition and see if it’s succeeding in your target country.
- Analyze the market’s conditions including its population makeup, number of foreign businesses in operation and available workforce.
- Decide if there is a true demand for your service or product in your desired location.
- Do a cost-to-risk analysis and include the price of imports, exports, and manufacturing.
- Determine if the country’s laws and regulations surrounding employee’s payroll and benefits, along with business operations, is worth the investment.
Seek Assistance from Industry Experts
You’re not the first one to explore international expansion, don’t reinvent the wheel. Use resources and advice from professionals that have this experience to create a plan. You can learn valuable skills from business owners that succeed overseas by studying their global strategies. In addition to fellow executives, there are plenty of assistance programs that relieve worries associated with global expansion.
- The International Trade Association
- U.S. House Committee on Small Business’ Small Business Export Guide
- The US Small Business Administration
- Most countries have World Trade Centers that can be great starting points for information
If you’re ready to develop a global strategy and expand your business, we’re here to help. Velocity Global’s team of experts can help you develop an action plan to get your business operating overseas in no time. With capabilities in over 185 countries, we’ve got you covered. Reach out to us anytime!