How to Handle Your Company’s Overseas Expansion
by Brian McKay
Taking your brand overseas is tempting, with the growing number of people making their purchases online. However, international expansion can also be overwhelming. You need to establish a new customer base, learn new laws and regulations, find reliable partners in another country, and familiarize yourself with local customs.
Are you ready to go global?
One of the first questions you have to ask is if your business is ready to succeed in an international market. Overseas expansion consumes a lot of time and resources, regardless of the size of your organization.
Evaluate your finances and determine if you have the funds to support and sustain business abroad. Monitor your share in the market and the status of your industry in the country of your choice.
Consider if you can build a solid customer base abroad. Just because your products sell well in your home country doesn’t mean it has the same appeal to an international market.
What challenges will you face when expanding internationally?
Major business decisions come with hurdles, but global expansion involves a different set of obstacles. Below are some of the challenges you have to anticipate before expanding overseas.
1. Language and cultural differences
You need a local staff member or outsourced customer service to translate the language and explain how things work in their country.
2. Foreign regulations
Business regulations and tax codes differ from one country to another. You also need to set up your business and a bank account to handle transactions more efficiently.
3. Product development and distribution
Some countries require packaging to be localized. It means you have to come up with a different package containing instructions in the country’s language and other guidelines.
4. Shipping
If you’re shipping items overseas from your country, you must come up with a way to eliminate the effects of shipping costs and taxes to encourage customers to buy. Will you be sending the goods directly to the local headquarters before dispatching to customers?
Or maybe it’s more cost-efficient to hire a package forwarding service? For example, buying from the US and shipping to the Philippines through a forwarding service reduces customs taxes and time spent on red tape.
5. Local competition
You need to convince customers to buy from you instead of the local business.
Best practices for a successful international expansion
After doing your research, you’ve finally decided that your business is ready for global expansion. Are you looking for guidance on how to do it? Here are some of the best practices from business leaders:
1. Learn about the market
Use available government data to learn the strength of your industry in terms of exports. If budget and time permits, visit the country where you plan to expand and talk to competitors, customers, and distributors. Doing so will help you learn if your product is feasible and if you can manage your business in the local setting.
2. Manage and understand customer expectations
Make your process clear to your customers. Let them know how long it takes to complete an entire transaction, from initial purchase to delivery.
3. Leverage relationships with influencers
Look for industry influencers in your target country and develop a relationship with them. As your relationship grows, they can be your mentors or guides toward your resources.
Expanding your business internationally is appealing but it comes with a set of challenges you won’t encounter when promoting locally. Research, research, and research. Make sure you’ve got all your bases covered before you launch, to ensure a successful venture.
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