Six tips for expanding your business internationally
Expanding your business to international territories comes with its challenges, and you’re likely to face a new set of obstacles that you didn’t experience when running your business domestically. The good news is that if your business is doing well in your home country, you’re already a step ahead of the rest when it comes to succeeding globally. However, not every business is built for the challenge of overseas expansion and it’s important to be aware of what you’re getting into before you start investing money in the process. Luckily, we’re here to help. In this article, we provide our top tips for going global with your business and succeeding in international markets.
1. Expanding your business internationally with market research
Understanding the market that you’re branching into is key to success as an international business. However, it can be difficult to get a good understanding of the market overseas when cultural and logistical barriers stand in the way. The best way to overcome this is to hire a reputable market research company. This should be the very first thing that you do before putting any plans for expansion in place. The information and data provided by a market research company will help you to decide on whether there’s a demand for your product or services overseas. Market research data will also help you to figure out whether your branding will translate well overseas, or whether adjustments will need to be made to make your business appeal and resonate with an international audience.
2. Cultural factors when expanding your business internationally
In a new country, you will face new cultural factors that you will need to navigate to be successful, one of these being a new language. To overcome language barriers, you should hire bilingual staff who can translate for your company and communicate with overseas clients. Make an effort to learn the language too if you can, since this will help you to establish meaningful connections with your employees and clients. Cultural differences will need to be accounted for if you’re opening offices overseas too. Work-life balance varies from country to country, and you will need to be aware of these differences when structuring the typical working day for your employees. When organising social events, this is also something to be aware of. In some countries, work and personal lives do not mix, whilst in other countries, work is an opportunity to meet friends and socialise. Understanding these differences will help you to establish a company that people aspire to work at and will help you appeal to a wider, international audience.
3. Get all your staff onboard
Although your business might currently be in a phase of growth, don’t forget to nurture your existing team, remember, you’re not building your business from the ground up. You should make sure that your current body of staff is all on board with the expansion and that they feel included in the new direction of the company. If they’re invested in the process and can see themselves in the company’s future, they’re more likely to be an asset to the company’s growth by bringing their all to the process and embracing any changes. Some ways that you can help your staff to feel involved in the company’s expansion include offering relocation packages. Transferring employees can also help with the transition process since they will already be trained and can transfer their experience over to the new team. If you’re transferring employees to another team abroad, then offering them global insurance can also be a nice perk.
4. Consider hiring a global recruitment agency
In an international market, the talent pool varies dramatically in terms of skills, availability, and culture. For this reason, sourcing global talent can be an overwhelming task. If you have room in your budget, hiring a global recruitment agency can help to alleviate some of these challenges. If there are some obvious skill gaps within your current team that you’re hoping to fill, you could research to find which country and region is best for those skills and consider expanding to those territories specifically.
5. Remember to factor in different tax and employment regulations
Different countries and regions have their own regulations when it comes to tax and employment. It’s important to make sure you are aware of these regulations and adhere to them since they will affect everything from the process of hiring employees to correctly filing tax returns. If you’re selling products, you need to consider how you would get them approved ready for being sold to the public. You’ll also need to be aware of the packaging standards of the country you’re selling in. Get thorough and reliable information about local law, international agreements, regulated activities, employment practices, and customs procedures. To minimize the risk involved in your expansion, you should also research whether there are any regulations in your home country on income earned internationally.
6. Make sure you have a currency strategy in place
One of the biggest challenges companies face when operating across multiple countries is currency risk. When operating internationally sending and receiving international payments can be a risky venture if not managed efficiently. Currency volatility can impact your profits, to mitigate your foreign exchange risks, we recommend you adopt smart FX solutions to ensure you are maximizing your profit margin. Having a corporate currency exchange strategy is key to achieving this.
Here at Halo Financial, we offer a range of FX solutions to help ensure your currency transfers are sent in the most efficient way. We work closely with all our clients and partners to understand how their business operates and to establish a bespoke risk management strategy that is tailored to their corporate needs. To discover the best money-saving solution when making international payments, contact us today.