At reesmarx, we’re clearly passionate about global expansion. Our team of experts have spent years in the industry and know about all that comes with going global. There are a plethora of benefits, which you can read about here, but today we’ll be focusing on the main challenges businesses face on their expansion journey.
1. Deciding on the Right Target Country
There’s a lot that goes into going global, but the first step is figuring out which country you want your business to grow into. You need to find a location that will benefit your company the most and provide great opportunities for further growth and success. As you sort through prospective destinations, some key factors to consider should include: economy, access to trade, local workforce, infrastructure, and financial incentives. Finding the right location to expand into takes a lot of time and research, but it’s the most important decision you have to make to lead a successful business expansion journey.
2. Foreign Cultures
Sure, you can expand into whichever country fits your company’s needs, but you also need to have, at minimum, a basic understanding of that country’s culture and societal structure. Take the time to research common behaviors and customs of your target country, and make an effort to act accordingly in both social and professional settings. If you want to take your business to a foreign country, you’re entering a new market with a consumer pool that might be vastly different than that of your home country. Being able to assimilate with the people who will become your customers, you’re more likely to find greater success in sales, revenue, and overall growth.
3. Adjusting Marketing Strategies
In order to have a successful business anywhere in the world, you need to know how to best appeal to your target consumers. If you’re looking to go global, it’s likely that you have already mastered your marketing strategy in your home country’s marketplace and have seen great success. Now that you’re looking to expand you must understand that most markets around the world differ from country to country. This means you will have to work to determine how you need to “translate” your current strategy in order to reach prospective customers in your target country looks like.
4. Tariffs and Fees
In most countries, foreign businesses are required to pay a tariff or fees in order to import goods. You should have a firm grasp on these requirements and integrate them into your business growth plan to avoid any future stress. Financial planning helps to prepare your business for what they need throughout their global growth journey, and by integrating these fees you will get a better grasp on how you’ll allocate your finances.
5. Business Personnel
You can’t have your entire leadership team and all of your employees in multiple locations at once, so you’ll need to find new team members within your target destination. Today we are able to communicate effortlessly with people anywhere in the world thanks to the internet and video chat services. Through video chat, you can easily interview prospective hires from your target location to fill positions without the need to travel. On the other hand, you can also send existing employees to your new location, but keep in mind that you will now need to find additional talent to fill those vacant positions in your main location.
Going global is an exciting asset to your company’s success. We’ve discussed a few challenges that come with going global, but these roadblocks are easy to work through (especially with some help from our specialists!) and the results of global growth will leave your company more successful than ever.