It’s never been easier for businesses to expand globally than it is today, thanks in large part to the Internet. But that doesn’t make setting up a branch of your business is another country a simple task – far from it, in fact. There are many issues that you will encounter which need addressing, and it is vital that you understand the broad range of pitfalls that could be in the way of your success. Let’s take a closer look at the basics of setting up a business overseas.
Check the Infrastructure
Just because you are seeing sales to a particular region increase by a dramatic amount, it doesn’t automatically give you the green light to set up shop right away. There could be a huge range of problems with that country that will impact your ability to run a successful overseas business. You have to research the infrastructure of that country thoroughly before making your decision. What is the economic stability like? Is there likely to be political issues in the future? What are the utility services like – and do they have fast enough Internet speeds? Even the weather of that country could have a big impact, so it’s vital to establish everything is in place before making your decision.
Learn the culture
Every nation is different, and drilling down even further will reveal even more cultural difference between regions within that country. It is vital that you learn about the locals before making your move. Understanding who your market is, where they are from, and what they are about is a hugely important part of the process which you can’t afford to ignore.
Understand the regulations
Every part of the world has their own unique way of doing business, and if you want to avoid running into regulatory problems, you have to have a thorough understanding of them. An international trade lawyer can help you here, of course, but it’s also a wise idea to start building up a network of local contacts. The tax and legal protections you might enjoy in the States will be very different abroad, and it will cost you dearly if you assume everything will be the same.
Understand the lingo
It’s not sufficient for businesses to speak the language of their host countries – you need a thorough understanding of it, too. As The Translation People point out, this goes for everything from regional dialects to the language used in different industries. Using the right words that your audience understands will have a dramatic impact on your ability to appeal to them – and, therefore, improve your chances of success.
Study the competition
Finally, make sure you have a thorough knowledge of all your competitors, from both present and the past. Look at companies that have failed, too, and find out why they didn’t enjoy any success. When you do move your business overseas, it’s important to understand that your local competitors will see you as a threat to their market, and are likely to change and adapt their businesses to counter that threat. And you need to be flexible, adaptable, and quick to change as and when they do.
Good luck with your new overseas business – let us know how you get on!
