Expanding your business globally is no walk in the park. Despite the myriad of benefits that come with “going global,” there are still a lot of firms that haven’t made the leap abroad. After all, it’s a massive endeavour that will require a lot of time, effort, research, and patience.
In order to successfully expand your business worldwide, having a smart strategy is crucial. Help your team get an idea of what it takes to expand overseas by checking out this list of the most important global expansion strategies.
Let’s dive in.
Goal Setting
You can’t hit the ground running if you still haven’t defined your goals. Try to segment the process into short- and long-term strategies. Through this method, you can set small yet realistic goals for each stage and easily keep track of the changes at every level. Take note: your goals should be timely, relevant, specific, and measurable. Schedule dates, use numbers and be as specific as you can.
Tax and Finance
Proper tax and finance systems should be set up ahead of time. By doing so, you can be sure that you are receiving reporting earlier and your foreign entity is following local corporate policies. For instance, you may consider outsourcing tax, accounting, and payroll services in Spain if you are planning to expand in that country.
You also need to establish relationships with local banks, come up with a transfer pricing study, work out a proper risk management plan and cash repatriation plan, as well as report sales and VAT.
Organizational Preparedness
Cultural aspects such as language, customs, or regulations should be taken into consideration by your firm at all times. Your entire team has to abide by the procedures and policies implemented in the area of your business to make sure that all employees are on the same page. Everyone needs to work toward one goal, and that is to execute the company’s plans. Having a “one size fits all” mentality will not do your company any good and may lead to negative effects down the road.
Build Your Beachhead Team
Most companies attempt to open with executives from the mother company or just quickly build a local team. This is not an ideal approach for firms that are expanding globally because it takes a lot of time, puts your company at a higher risk of failing and cuts your marketing time.
Instead, you need to tap a team of senior interim executives who could help get things started. They can help you drive certain initiatives while the company finds the ideal senior management team.
Business Plan
All markets are unique in their own way due to different governmental, cultural, and economic conditions. This is why you need to work out a localized business plan and strategy that allows you to succeed locally while still staying integrated with the overall corporate goals.
Readiness on Legal Matters
There are certain countries that are notorious for being very litigious. This is why it’s important for your business to establish strong legal processes to avoid unnecessary commercial risks down the line. Keep in mind that government agencies also have strict policies that require legal documentation to be submitted before operating a business in the country.
Product Strategy
Last but not the least; make sure that the product you’re planning to offer is going to be market-worthy. Come up with a product or service that will appeal to any foreign market. Carry out necessary tests for your product in your target market and see if there are any adjustments needed.
Since you already have a facility overseas, you can use those to help you make decisions on how you should adjust your product in conjunction with the local market. As things progress, identifying new and much better opportunities will be a breeze.
Wrapping it up
Let’s be real here – you’re still at the starting line of the race. And we mean that in a good way. If you’re feeling pressured by all the planning and preparations required in expanding globally, don’t fret – you’re not alone. Remember, you can overcome any hurdle by setting small realistic goals and making plans that get you closer to meeting them. Global expansion is a great opportunity to help your business grow, as long as you take one step at a time.
