According to the latest research, experts predict that global expansion will slow down from 3.2% to 2.7% in 2023.
This can be a great opportunity for your business to expand without much competition. However, you need to do this carefully.
Keep reading to discover all the international business mistakes you should avoid.
1. Hiring the Wrong Candidates
Your employees will be the ones who determine how successful your business growth is, so you’ll want to start by hiring the right candidates. When you hire the right employees, they can help your business expansion and even become advocates for your product or services.
Many companies have had to change their hiring processes after the COVID-19 pandemic, and hiring internationally poses its own challenges. However, there are many solutions out there, like hiring a PEO to handle all of the legal challenges that come with hiring remote workers in other countries.
2. Not Having a Plan
It would be best if you had a plan for growing your business. It can be exciting to want to expand internationally and rush into a new market, but if you don’t have a plan, everything could fall apart, and you won’t grow much.
When you handle all of the research and preparations beforehand, you’ll be better prepared to handle any obstacle that might come up. It would be best if you had a different plan for each country you want to enter because they’ll have their own markets and challenges.
Take time to study the market and determine what customers are there. Do you have a lot of competitors in that market? Are they doing well, or are they struggling?
When doing your research, you also need to examine your finances. Do you have the money to fund this type of expansion? And what kind of monetary return on investment are you hoping to get?
Also, do you have the resources to put this kind of business expansion in place? Do you have the experience you need to manage an international company?
You should also take time to review the weaknesses of your company. If your company has many of them, expanding internationally might be the one thing that breaks the business.
3. Not Choosing the Right Market
While doing your research, take some time to figure out what market you want to go into. For example, you might be interested in entering the EU market. A prosperous economy can be attractive, but looking at emerging markets might be more productive.
The young and growing markets might have more business opportunities for your business, and you might get a better return on investment.
There aren’t really any bad markets, but it depends on your product or service, what competitors are already in that market, and the types of consumers who might be interested in your product.
Establishing an international business can be challenging and stressful, and some business owners will try to micromanage every aspect. However, micromanaging from a distance can hurt your employee morale and slow down your business.
To get around this, you should find someone you trust to make good decisions that align with your business. This way, you can assign them to the international branch and have them make decisions for you.
5. No Flexibility
The first strategy you come up with for your business expansion may not work, and you need to be okay with switching to a new strategy. You’ll need to be able to adapt to change quickly to get into a new market.
One thing that will help you measure if your strategy isn’t working is setting KPIs and timelines for your goal. You might find that you need to alter your strategy, but you can also listen to your customers and employees.
6. Not Consulting an Expert
If you’ve never expanded a business internationally before, chances are that you won’t be an expert on everything. It might be wise to consult an expert or hire a consulting company to help you expand your business.
Expert advice can be costly, but it can be the difference between seeing a return on investment in a new market or failing in that market.
When you’re working in a new market, you’re exposing your business to all kinds of risks, and having that advice and support by your side can be very useful.
7. Entering Too Many Markets at Once
If this is your first time expanding your business globally, you need to ensure that you’re not entering too many markets simultaneously. You might have limited resources, and you should only focus on one market at a time.
However, it might be beneficial to have an idea of future markets you want to expand to. It is better to have good returns on investment with one market versus failing at three or four markets at once.
8. No Goals
You need to set goals for what you expect to see when entering the new market. It can be hard to predict what will be successful, and some companies launch their expansion without having any goals in mind.
However, this strategy is very dangerous, and you may see results at first, but it’ll collapse over time. Instead, pick KPIs and ROIs you want to see within the first few months. You’ll have to decide if you want a good ROI or just to reach new customers.
Discover More International Business Mistakes That You Should Avoid
These are only a few things you should do to avoid international business mistakes, but there are many more things you can do to help your strategy succeed.
If you’re interested in hiring a business consultant to boost your chances of success, we’re here to help you.
Check out our website to learn more about how we help global businesses succeed.