Moving my business to Australia let me reach new markets, but I had to plan carefully and consider everything from culture shock to life insurance. Financial planning can go from complex to convoluted when dealing over international borders. Opening a branch or moving your business overseas will open new doors in the business world while allowing you to build an international reputation, and discover new habits and talent. To make this venture successful, you’ll need to avoid these seven deadly sins of opening a business overseas.
Jumping in Too Early
There’s no substitute for real ambition. Chomping at the bit to begin a new project or venture is a positive trait. However, the ability to look before you leap is critical when making a large move like going international. As I was making the decision to move to Australia, I didn’t want to be charging into a new market unprepared, without proper investors and backup. We know this rarely works out. Make sure your dealings in your country of origin are going swimmingly before branching out to another nation, and cautiously prepare yourself for the change.
Breaking Regulations
Smart businessmen have a good relationship with a reliable lawyer. Opening a branch in a new country will likely require you to recruit a lawyer from that nation who is familiar with the labor laws and business regulations you’ll contend with abroad. You’ll need to familiarize yourself with the role that the government plays in the commerce of the area. If you fail to do so, you’ll ruin your venture and your reputation while also being hit with massive fines.
Failing to Ensure Employee Treatment
The benefits you offer your employees in your new branch should be comparable to the ones you offer your employees on the home front. This may take some doing, especially as the branch gets its feet under it. More importantly, you’ll need to be aware of the average benefits in your industry. Will employees expecting something like GIO Personal Life Insurance to be offered in addition to a basic health insurance plan? Do a little bit of asking around in similar businesses and make a decision that will benefit employees.
Ignoring Competition and Pricing
Years of research beforehand should be dedicated to getting to know the markets you’re hoping to break into overseas. Before you get to the point where you’re looking for real estate to set up shop, you should be paying close attention to the financial situation of the nation as a whole. What role does this nation play so far in your industry? What is the cultural opinion of your industry? Is this country’s financial situation stable?
If you come in offering your services and products at prices way above average, you’ll be wasting time and money marketing for a futile cause. If you crash the market with prices that are far too low, you’ll garner ill will in your competitors and drastically change the landscape in a way that will be difficult to benefit from. This brings me to my next deadly sin which is all about adapting to culture.
Unwillingness to Adapt to Culture
This can be a crucial element for your success. Culture includes everything from language, symbols, cuisine, social habits, music and art. Culture is often influenced by many different groups of people coming together with drastically different cultures, sharing and trading bits and pieces of their own. Your business can keep its identity while incorporating essential cultural aspects of the new country’s culture. Unwillingness to use the native language in your new facilities, or ignoring social habits such as dress code can be a deadly choice. Employees and investors alike will appreciate your effort to speak to them as an incoming member of their culture, willing to experience things openly and without prejudice.
Luckily for me, Australia’s culture is very similar to that of western culture, just heavily influenced by the remarkable environment and history. I particularly noticed the overwhelming commitment to and pride in their beautiful continent and spirit of equality that unifies the people. The colloquial words took some getting used to, but now I encourage hard yakka until it’s time to say hoo roo (which means hard work until it’s time to say bye!) even if I do sound a bit silly.
Lack of Communication with the Mother Ship
Similar to your effort to ease in to a foreign culture, communication has to be in place to allow approval of the brand image you are creating. I tried to spend as much time as possible at the company I started in Australia, moving my family from the US to Sydney, so that I could easily foresee operations. If communications break down, bad things start to happen quickly. Whether starting a new branch in Canada or Japan, miss-communications happen. A lack of a cohesive brand across your company spells sure death (just ask KFC Thailand). Their Hitler-esque Colonel Sanders shows bad taste doesn’t it? Granted, this is a case of two unaffiliated restaurants (one with an apparent cultural sweet spot for Nazis), but it could nevertheless happen to you.
Giving Up Too Soon
Don’t give up! There will be highs and lows of owning a business, and it seems like everything is intensified when moving to a new country to do it. Being an entrepreneur means sticking it out and struggling sometimes. Don’t let lack of results find you jaded and discouraged, instead renew your commitment to getting clients, securing them, and creating your product or system for the client. There are no shortcuts, and once you have traveled halfway around the world, you might want to give up.
Making a good impression in your niche and business culture in a new country is essential. This is an opportunity for you to become a household name and to bring your company’s virtues to a new group of people. Don’t jeopardize this opportunity by making gaffes, wasting money or letting your dream be flushed down the dunny because of your own opposition.
