Growing a business seems easier than ever in the age of the internet. However, now that even small business models have the tools and resources to reach a global audience, that doesn’t mean that there aren’t challenges. Overseas expansion can be very appealing for a variety of reasons, but between getting a firm footing in a new location and ensuring that you are compliant with the local laws of your new market can be increasingly complicated. If you are thinking of leveraging your brand as an international concern, then here are some of the key factors that you are going to need to pay attention to.
Cultural Differences and Language Complications
Different populations have different needs and different goals. That means being aware of how your product or service is going to be received in the countries that you plan to expand into. As well as the cultural differences regarding your brand, you will also have to learn how individuals in those countries work. Remember to address:
- Personal space differences
- Cultural context (particularly important for marketing purposes)
- Business relationships and cues
- Communication
There is an etiquette change and language barrier to address if you want the international expansion to be more successful.
Legal Compliance and Issues with Regulation
All countries will have their own set of laws and regulations that you will need to know and adhere to. It can be very useful when entering a new market to get some guidance from companies that have already helped others to break into new audience geographies. If you want to start selling in Australia, then you’ll need to be aware of the local laws that limit your speed of growth, while branching out into Asian territories will require translation services and tighter protection of your assets. If you’re expanding into China, then you’ll need to become a limited liability company. A WFOE in China (Wholly Foreign-Owned Enterprise) is easy to arrange and can keep your business and your assets more securely protected. As an added benefit you can ensure that can quickly implement the strategy you have in mind.
Packaging and Shipping
This will form the most customer-facing element of your growing business, and you’re going to need to get it right if you want success. Your packaging will need to be localised, as will product user guides. This can increase your costs, so budgeting needs to be very firmly controlled. Remember as well that different countries have different speeds. Spanish businesses close down for siesta and may not be reachable on weekday afternoons, while German brands want prompt and precise service at all times. This means your customer service is going to need to address 24/7 availability. Momentum can be one of the main challenges of global business expansion which is why planning out each step of your growth and addressing every potential issue with a proactive solution is so critical.
To make overseas success more likely, you need to take a rigorous approach that includes research and action. Make sure that your infrastructure can cope with growth, and can be redirected into your new markets. You will need to take tight control over your costs, but with the potential profits that can come with global growth, it might be easier to balance those costs than you might think.