Growing Your Business Internationally

Growth and expansion are very likely key objectives for your business. So now let’s say you’ve expanded and made an impact on the domestic market. Are you thinking about making the big move next and expanding internationally?

Sounds fantastic, of course. But going global is going to require some careful planning. Here are five things to consider to help ensure that your move overseas goes smoothly.

First, make sure you can replicate your existing business model. Wherever you decide to locate overseas, you’ll be facing challenges that are different from those at home. Labor laws, cost structures, weather patterns, holiday seasons… all of these may alter the way you’re accustomed to doing business. Ensure, however, that the key components of your business model overseas are similar to your existing model. Remember, you’re expanding, not restructuring.

Second, make sure you find the right local partner. Many countries require joint ventures. Having a partner that’s financially sound with a good local reputation is essential to your success. It’s also useful if your local partner is an efficient operator that has access to resources and influence.

Third, make sure your infrastructure is set up. Expanding overseas will make new demands on your finance department, your IT department, your logistics department... Well, EVERY department. Will you need to do currency conversions? Will you be bringing your new facility onto your IT hub? Be prepared on your home turf before stepping off.

Fourth, make sure you’ve done your cross-cultural homework. In addition to all of the differences in business regulations that you need to know, it’s also critical to know how your host culture operates. Breakdowns in international business communications are often culture based. It’s a good idea to do thorough research and ensure that your expatriate staff are trained.

Finally, make sure you take your time. Take as much time as you need and more to plan. Rushing in with high expectations, a lack of support and increasing overhead costs can result in losses on all levels. And don’t expect profits overnight. Many businesses that expand overseas experience losses during the first few years. Invest time, learn from your experiences and build your learning into your business plan.

Of course, there’s a lot more than these five points to consider. That’s why planning is key. Do your homework in advance and you’ll save you time later that you can invest into your international business success.