The pandemic has impacted the lives of many people around the world.
Restrictions in travel did not allow many people to move freely and thus not meeting with families and friends.
But I am confident that the world will soon be able to start again and opportunities for expansion into other countries will increase exponentially.
In the meantime, it is best not to be unprepared and to study the possibilities that a global expansion into other countries can offer to your business.
In this article, I want to highlight some points that it is important to understand in order to face an expansion abroad.
1) Study the market
Going abroad and expanding your business is not always easy. There are several aspects to consider at the market level.
A market research before investing abroad is probably the most important suggestion that I feel to give, as it can change the fate of your company.
Questions such as “What are the buying habits of consumers?”, “What are the cultural differences compared to my country”, “What are the rules for starting a business in the country”?, are only some of the question to answer.
A market research allows you to better understand all these aspects and evaluate whether or not to invest in the country.
2) Choose the right business structure
The choice of the business structure to be used is equally important to avoid problems at the legal level and thus start the activity quickly and without the risk of paying penalties.
Depending on the business structure used, even aspects such as taxes may vary.
3) Find a local partner to support you
Investing abroad means having to deal with many aspects related to taxation, human resources, relationship with public offices that can cause problems from the point of view of administration and compliance.
For example, in a country like China, aspects related to employment, HR, and payroll are obscure to foreign companies, both because of the language and because of the constant changes in regulations that can undermine business operations.
In such a case, it is more convenient to use a Chinese HR service that can handle these delicate aspects.
4) Look for funding and insurance options
Many countries have set up government funding programs to support business international expansion. You should check if your business qualifies for government support. But you also need to find the right insurance solutions to protect your business against trade and political risks.
5) Define a clear strategic plan
Expanding abroad without a clear plan is the best way to end your experience before you even begin.
A well-defined strategic plan allows you to have a clear vision of what your business goals are in the short, medium and long term.
In the plan, you don’t have to forget to clearly define a comprehensive, cohesive strategy that addresses sales strategy, sales delivery, branding/value proposition, marketing strategy, marketing programs, and pricing, which together create clear market differentiators that propel market acceptance and revenue growth.
Having clear goals and strategies to achieve them is the best way to enter a foreign market.
6) Build your team
An overseas expansion will also require you to expand your team.
Local staff can enable you to better manage your expansion because the team knows the local market, language and and can manage customer relationships in a better way.
But especially for small and medium-sized businesses, hiring employees can be expensive and risky if you don’t know the laws.
To test the market and hire employees, even without having a company in the country, the best solution is to use a PEO.
A PEO (Professional Employer Organization) can help you not only find employees, but also taking care of all the aspects related to HR, payroll, taxes, and benefits.
When you go abroad, you have access to a market that is certainly larger, but which can offer many more opportunities for companies.
Networking, participating in local events, contacting other people who have experienced the same situation as us, is important both from a business point of view, opening doors to new opportunities, and from a human point of view, sharing problems and solutions with someone who is in the same situation as us.
Expanding your business abroad is definitely a process full of pitfalls and obstacles.
I hope that with this article, I was able to provide you with some useful information that can help make your business expansion abroad easier.