Companies have a lot to contend with during global expansion. From the different labor laws in each country to understanding visa requirements, a company could face a number of challenges if it does not have a plan in place. By implementing global strategies that anticipate potential challenges, companies can plan for a more prosperous global expansion.
Best Practices for Developing Effective Global Strategies
Companies need to have a clear vision for global growth in mind when developing a global expansion strategy. The most effective global strategies are those that take cultural and legal expectations into consideration when formulating a plan. When creating a global expansion strategy, companies can benefit from learning how to navigate new markets, ensuring compliance with local labor laws, and using an agile approach to international expansion.
Test the Market
Before a company makes a commitment to enter a new country, it’s best to perform a thorough market test by spending time overseas performing hands-on research. Making an effort to explore the country and get a feel for the culture firsthand will give companies a better understanding of the legal requirements to consider when entering into a country.
In addition to research, it is important to analyze the competitive landscape of a target country. This includes examining a country’s market conditions, such as population makeup, number of foreign businesses in operation, and available workforce.
Taking the time to properly assess the marketplace before making a commitment to a country allows companies to see whether or not there is an opportunity for its product or service offering in a desired location.
When beginning operations in a new country, companies need to ensure that they are managing compliance throughout the entire process. This can be a challenge, especially if that company does not have experience navigating the employment laws and tax requirements that vary from country to country.
Maintaining compliance includes addressing benefits, withholdings, taxes, bonuses, agreements, and termination regulations in foreign countries. Terminations are one of the biggest compliance risks companies face when operating in foreign countries. In Australia, for example, employers must provide employees with a written notice of termination with one to five weeks of lead time, depending on the length of employment. Terminations are just one of the many factors that can affect a company’s compliance in new markets. By keeping these common compliance issues in mind, companies can better prepare to overcome the obstacles associated with them.
Take an Agile Approach to Global Expansion
As organizations approach global expansion, they can benefit from studying effective global strategies that have helped other businesses find multi-market success. For instance, there are assistance programs, such as the US Small Business Administration, that provide support to companies with limited resources so they can better overcome challenges associated with global expansion.
Another solution to help companies enhance their global expansion experience is through an International PEO (Professional Employer Organization). This employment solution helps an organization enter into and hire in a new country quickly and efficiently without the need to establish a foreign entity right away.
Velocity Global has helped hundreds of companies establish an international presence through our International PEO solution. With capabilities in more than 185 countries, we can help your organization reach its global expansion goals, too—virtually anywhere.
Ready to get started? Reach out to the Velocity Global team today.