Expanding your business gives you the opportunity to enhance your success and substantially increase your profits. However, you’ll need to have a strong growth strategy in place if you want to expand your company. For many firms, the ideal way to expand is to grow the business internationally. By going global, you can substantially increase your reach and establish a brand presence in new regions and markets.
Although the growth potential is enormous, deciding to trade internationally is a big step. If you’re growing a small or mid-size company, for example, you’ll want to ensure you have the logistics and resources in place to facilitate such an ambitious growth plan. If you’re thinking of ways to expand your company, take a look at the factors you’ll need to consider when deciding whether your business is ready to go global…
1. Have You Got Funding in Place?
Launching in a new market can require a significant investment. Even promoting your brand in a new country or region can increase your marketing budget by a substantial amount. When you consider the cost of shipping materials or goods to a new region or setting up retail stores, offices, warehouses and factories, you may need considerable funds in order to make global growth a viable plan.
If your business is generating profit, then you may want to re-invest it into your expansion strategy. Alternatively, you may be looking for external investment in order to finance your next steps. Whether you choose to take out a business loan, sell shares in your company or use a venture capital firm, you’ll want to ensure you have enough funding in place to see your growth plans through to completion.
2. Can You Manage a Remote Workforce?
Depending on the nature of your business, you may need to hire staff in your new location. If your headquarters are in New York and you’re expanding to Europe or Asia, for example, you won’t be able to travel from one location to another on a whim. Instead, you’ll need to have staff situated in these locations to undertake the day-to-day management of the business and to take on customer or client-facing roles.
Fortunately, you don’t have to handle this aspect of your expansion alone. With services from specialist firms like New Horizon, you can access the advice and assistance you need as you grow your business globally. From international payroll and professional employer organization services to global recruitment and compliance management, you can ensure your business is properly managed in any new location. New Horizons offers a range of services, including international payroll and global PEO and staffing.
3. What Do You Know About Foreign Markets?
Even if there is demand for your products or services in a foreign market, this doesn’t necessarily mean that expanding your business into these areas is the right way forward. Before you decide to take your business global, it’s essential to have a good understanding of foreign markets.
Furthermore, exporting into a foreign market is entirely different to establishing a local business within that jurisdiction. As an exporter, you’re likely to face additional tariffs and taxes, for example. In addition to this, there may be national laws relating to the production of goods, which means you’ll need to ensure your products meet that market’s particular criteria.
4. Do You Have an International Network?
If you’re determined to make your business a global success story, you’ll need an international network in place. From supply chains and logistics to advertising and merchandising, there are numerous areas in which it’s helpful to have an established network.
If it’s possible, it can be advantageous to visit potential new markets in person before deciding to trade there. You may want to reach out to potential new contacts online before taking a business trip to discuss possible collaborations, for example.
Although the internet makes it easy to access information, connect with industry peers worldwide and trade internationally, visiting a new jurisdiction in person gives you a unique insight into the market and enables you to build strong ties with professionals in the region.
Are You Ready to Trade Internationally?
If you’ve done your due diligence, researched all potential growth opportunities and familiarized yourself with the most viable markets, you might be ready to start trading internationally. However, it’s critical to have your company infrastructure well-established before you launch your brand in a new region.
While it might be tempting to forge ahead with your growth plans, it’s worth taking the time to re-assess every part of your strategy to ensure you haven’t missed anything. By doing so, you can address potential problems before they arise and put contingency plans in place to ensure your expansion goes smoothly.
Taking your business global could take months or years but, with the right preparation and expertise, your international growth plans could be a sure-fire way to put your company on the map.