If you want your business to be successful, you will need to expand it at some point. This might be simply opening up a new store or another location for your office or factory. It might be moving online if you have never sold on the internet before. Or it could be that you want to expand into new countries and open up your business abroad.
If this last idea appeals to you the most, then there are several things you will need to have in place first. Read on to find out how to get started:
Assess Your Capital
You will need a strong business plan and budget to succeed in expanding your business overseas. If you don’t have enough money in your current business, then you might want to consider looking for a loan or perhaps an investor who can help you achieve your goals.
To do this, you will need a business plan that not only sets out how you intend to spend that money, but how you will make a profit. What are the costs, and what is the potential income? Knowing these figures will help you to decide firstly whether the idea will work, and secondly, it will help others to decide whether they want to invest in you. The better the plan, the more likely you will have your money.
Market Research
Of course, a great idea that works at home may not work so well abroad, and therefore it is important to carry out market research before committing fully to the new business expansion you want to take on.
One idea is to hire a market research firm to do the work for you. This can be useful if you don’t have the time to go abroad, but the best way to ascertain whether an idea is going to work or not is to do the market research yourself. Make this business trip as simple as possible, as there will be a lot to take in when you are there.
The most important part of this trip will be determining whether or not your idea is a good one. Look around and see if anything similar to your business is already in place. If there is, don’t worry – this is a good sign if they are doing well. If there isn’t, this could also be good; you might be the first. However, this could also mean there is no market for your business, so ask a set number of people to see if they would buy your products and services.
Understand Cultural Challenges
When you are opening up a business abroad, there are sure to be some cultural challenges that could prevent you from being entirely successful if you aren’t aware of them. Making sure you understand the culture of the country you are expanding into is a priority, as you can make a mistake without even realizing it, and that mistake could mean your business fails.
Some things that are perfectly acceptable here are not considered polite elsewhere, such as a thumbs-up or okay signal. Customers may need to take their shoes off to enter your store, or they might not be able to buy what you are selling for religious reasons. This is why, when you are expanding your business globally, it is often best to engage an employer of record or EOR. When you do this, these issues – and many others – can be easily solved.
