For many firms, developing an international business strategy is part of the growing process. If teams create a plan early, they see better results in regards to industry growth. The best set of actions items is complex, which is why we put together a list of eight do’s and don’ts for businesses to consider when developing their international business strategy.
Do take small steps before diving into a possibly debilitating investment.
Global expansion is a risk for smaller firms, but it’s usually necessary to jump to the next level. Companies that do not have substantial capital to risk on an expansion should consider Foreign Subsidiary as a Service. This option takes the heavy responsibilities, such as compliance and payroll, off your plate and allows you to quickly expand overseas.
Do establish realistic goals.
The key to any strategy is setting short- and long-term goals. It’s the same scenario when developing an international business strategy. Determine how this expansion will increase revenue and what actions you’re willing to take to achieve your target goal. Create a list of short-term objectives and a list of long-term objectives and make the necessary edits as you start to operate in your new location.
Do plan a visit your target market before setting up shop.
This is an important step when determining the prime location for your new operation. Travel to your desired country. Dive into the culture to fully understand what your potential customer base wants and needs. Operating in a new market is complex. You cannot start selling your product or service in the country and expect to succeed without research. You need to first, understand the cultural dynamics, including language, and mold your brand around this new audience.
Do develop a trusted, in-country team.
When you visit your target market, start to develop relationships with a trusted team of professionals that will assist with overseas operations. You’ll benefit from a business development partner and a sales representative with a comprehensive client list. It’s also beneficial to seek advice from a legal consultant who is familiar with the employer regulations in your target country. Velocity Global’s services can also help you with these barriers.
Do not ignore cultural barriers in your target market.
As mentioned above, you should begin to understand the culture of your target country during your visit and through extensive research. Pay attention to details including symbols, phrases and traditions and make sure these align with your brand. Do not be afraid to update your logo or tagline to meet the needs of your new audience, if necessary.
Do not complete your international business strategy without assistance.
Global expansion is not a simple task. Seek advice from international consultants before you sign off on your strategy. These resources can ensure that you’re compliant and ready to hire employees overseas before you run into legal issues. Understanding international regulations and laws is a full-time job with many complexities and hiring an expert is a safe and simple option.
Do not assume that you understand international payroll.
Hiring employees overseas comes with many challenges, which include new wage and labor laws, benefits requirements and required annual bonuses. Monitoring these challenging requirements is a daunting task. Consider outsourcing your international payroll to save you time, money and risks. There are great international payroll softwares, Celergo being our favorite considering they will take responsibility for the compliance liability if something were to go wrong.
Do not wait too long to develop your international business strategy.
Start developing your plan now. Global expansion is becoming a requirement for smaller firms to leap into the mid-size market. Even if you are in the very early stages of development, you should start considering when and how you want to expand overseas in order to keep up with your competition.
If you need assistance with your international business strategy, give us a call. We have a team of experts who can walk you through the steps to get your business up and running in your target country quicker (and cheaper) than you think!