Having been a success in your country as an industry leader, you may be thinking about taking a step further and having dreams about operating on an international level. This is a significant move for any company, particularly when you have started it from scratch, but it can also be incredibly overwhelming. It can also be one of the most exciting times for a company. Do not be afraid, though, as we have put together several tips to help you move from small to world leadership.
You must make sure that both you and your business are ready in the logistical and financial sense before you start the often complex and lengthy process of going global. If you are not entirely sure, there is no harm in hanging on a little bit longer and staying local, because diving in the deep end too quickly may cause you to flounder and fail. Remember, just because you think that your product, service, or idea will work in another country does not necessarily mean that it will. Scaling borders is always an expensive and complicated process, whatever the size of size and type of business, and it takes resources and time away from other local opportunities and your core business activities. Can you afford to take this risk?
Before you throw your heart and soul into a global expansion, spend some time planning and tracking your market share to see how it will support new international markets and help to build more long-term opportunities. If you think that there is a need for what you can provide, have all of the necessary resources to finance the initial investment, and maintain the development you are planning, then go for it. It is essential to keep in mind; however, that success is very rarely immediate, and preparations and time need to be factored into your plans.
With global expansion comes a whole host of new challenges and obstacles that you may not have thought about these may include:
Differences in language: How do you interact, for example, on the Chinese market if your business’ primary language is English? It can be disastrous for the business if messages are not delivered correctly. Obviously, there are ways around this. One of the most transparent and straightforward ways is to recruit bilingual workers who interpret for you. You might either want to play an active role and hire someone to work as an in-house member of staff or outsource it to somebody part-time, depending on your company needs. If your workflow relies on the interaction of your clients, make sure you have employees who speak the language of the country of which you are expanding in. You could consider using a PEO to help you.
It does not matter where you are in the world – customers expect the very best quality service and language can be a significant barrier to that.
Differences in culture: It is not only the language differences that we need to take into account but also cultural differences as well. Remember that every country and culture has its own complexities and ways to do things, and it is essential to focus on those and not to offend them. You will need a local person to understand how the culture and taste for certain consumer products and services outside of the United Kingdom will affect the market.
Compliance with international regulations: Ultimately, you may be aware of all of the rules and regulations governing compliance in your own country. However, do you know the rules in the other countries that you are planning to expand into? This includes global tax regulations, corporate regulations and packaging requirements. You may also find that some banks overseas are unwilling to deal with your administrative problems that might occur in dealing with a British company, especially after Brexit. You may need an international banking company to help you to deal with the financial side of the business. There are some ways around this; however, if you want to get a little more creative. These include using payment platforms such as PayPal, although this does bring about some issues of its own, or International money transfer, which is safe, easy to use and could save you plenty of money in transfer fees.
The pace: It is not unusual for companies to realise just how fast-paced industry is in the United Kingdom once they move into a market outside of it. It can take people by surprise! The speed at which other nations work at may be a lot slower, and some may find that this can take some getting used to. However, it is important to try not to rush things because what you want to do is to build a partnership and trust with customers and vendors. If they feel rushed, they may not feel as valued, and this can have adverse effects. Try slowing down and going at the pace of the local – you never know, you might find this a much better way of working overall.