Global expansion is the goal for many businesses, and if you are aiming for that kind of change you will want to know you’re doing it right. It’ll never be as simple as pressing a button saying “Go Global!”, though, and you will want to know you protect your business from risk at the same time. So, what methods are available to help you avoid issues while building on what you have already created?
This article will dive into the details that might make or break your attempt to grow. Read on and prepare your business for global reach.
1. Conduct Market Research Early
Not understanding the market you plan to move into will mean you are far more likely to flounder until you find your feet. It will also help you build your global expansion strategy by avoiding costly mistakes, such as legal errors that end up with you paying fines.
Identify Business Opportunities
Performing a SWOT analysis and comparing yourself to the market you intend to enter will help you discover unmet needs in the area. You can then pivot what you offer on a local scale to meet demand. You may even be able to find local groups you can partner with to help expand faster and give you a good base of core customers and clients.
You should also research local economic trends to learn how stable the local area is. The last thing you want is to expand somewhere going through a rough patch, affecting you and your business as you try to expand.
Discover Your New Local Competition
Knowing who is going to be pushing back against you is important. It can do two things, both good and bad.
First, it will show you whether there is a market in the area to start with. If there is a thriving competitive environment, it means there is a demand for what you can provide.
Second, you can try to see if you can offer a USP locals need. This will help draw people away from the competition and set you up as a viable alternative.
2. Localize Products for Different Cultures
As you enter a new market, remember any region you expand into may have a different way of working. Things that might be vastly different depending on the location might include the following:
- Cultural touchstones
- How people pronounce letters
- Holidays and expected time off
- Corporate culture
- Deference to managerial authority
- Willingness to ask questions
While global expansion services can help with ensuring you do not make too many mistakes, it is good to do some work of your own. Avoiding some of the worst faux pas with your branding will ensure people respect what you have to offer.
3. Assess Economic Implications
Make sure to study the tax structures that might exist in the areas you plan to expand into. This might be VAT, some kind of goods and service tax, or many other regulatory rules. These may even rely on treaties between different countries to define the exact nature of any currency transfer.
A global expansion service should have the tools and legal expertise to offer you advice on what to do here. They will help you avoid mistakes that could cost you a lot of money and keep your business from crippling before you even start.
13th Month Salaries
While not common in the United States, “13th month” salaries do appear in many areas of the world. These act as a bonus payment that occurs once a year and is sometimes enshrined in law. Make sure you know which countries do this so you do not face surprises when your employees expect them.
4. Ensure You Follow Local Laws
As well as taxation and currency issues, you should also ensure you follow rules related to recruitment and paying employees. Non-compliance will not only put you in hot legal water but might also hurt your brand image.
Find an Experienced PEO
Find a professional employer organization (PEO) that can help you understand and comply with any legal demands from an area. This might include
- Gathering licenses
- Sourcing permits
- Filling in local documentation
This list is not exhaustive, and you may need to investigate what else a PEO can do for you. For example, they might be able to act as your payroll service, which will help you avoid needing to handle local payment issues.
5. Leverage an Employer of Record
An employer of record (EOR) is a company that acts as the real manager of people you bring onto the team. You hire the company, and they supply you with a trained workforce who can do the work you need.
Outsourcing HR Work
An EOR can handle many of the HR issues you might usually have with new hires. These include:
- Discipline processes
This frees you up to focus on the core of your role instead.
Handling Legal Issues
Having an EOR provides you with legal safeguards that reduce risks that may occur during global expansion. These include employee disputes and changes in laws and regulations.
6. Choose Seamless Global Technology
These days, almost everything is online. You should look into online collaborative tools, such as virtual meeting software and task managers. This way, you can empower people to communicate and perform their roles no matter where they are.
Not only can this help you reach a global workforce, but it can often also aid you in your local area by increasing access to data across the company. Though, you should ensure it is both scalable and has robust security features, to ensure you do not introduce new issues to the company.
Empowering Your Global Expansion Strategy
You need to prepare your business from a legal standpoint and avoid some of the most problematic errors to be successful on a global stage. As such, global expansion means more than simply having employees in other countries.
Still, as mentioned above, you might need a PEO or EOR with the right expertise to help you get past some early speed bumps. Bradford Jacobs has both the experience and the tools to get you going with as few problems as possible. Get in touch to learn more about how to give your company the best chance of success today.