Considerations When Growing Your Business Internationally
Growth is the goal for any business owner, but for many, going global is the ultimate aim. While online shopping has made it easier to take your business to the international stage and explore new markets, expanding overseas also presents a new set of challenges.
From cultural customs and trading laws, to logistics and marketing, going global requires a lot of research and knowledge. To help you on your venture, here are some things to consider when growing your business internationally.
New Business Plan
Firstly, and crucially, you will need a new business plan. This is because each country has its own market, economy and culture, and as such, you cannot expect to simply replicate your business elsewhere with the same success you have experienced in the UK.
Your new business strategy must take into account international competitors, marketing objectives, growth analysis and logistics, to name a few.
Language and Culture
Every country has its own unique gestures and ways of doing business. For example, when at a business meeting in France, long lunches are common, while in China, it is customary to bring a gift. Furthermore, in some cultures, small talk is considered polite, while others prefer to discuss business straight away.
To overcome cultural barriers, do your research and consider employing local or bilingual staff.
Customs and Tariffs
Expanding internationally to the likes of the USA and China means business owners need to become familiar with different customs and tariffs. Furthermore, while the UK currently has access to the single market, this could change depending on how Brexit impacts trading. As such, going global could become more complex, as British businesses will have to adapt to new trading laws.
Tax Codes and Regulations
In addition to customs and tariffs, businesses also have to comply with different international tax codes and regulations. This may include product and packaging standards, business regulations and different tax rates, all of which can impact operations and profits. If in doubt, speak to an international courier like TNT, who can help to advise you.
Due Diligence is Essential
While it is always important to plan for any eventuality, this is crucial when expanding internationally. Before making the move, research the location, test out your product and marketing strategy and look into the cost of premises. In addition, make sure to create backup plans, including an exit strategy, so that should the worst happen, you can minimise the impact on your business.
Going global can be difficult but if thoroughly researched and carefully planned, it can boost profits and grow your business. Make sure to consider cultural, legal and economic differences before making the move.