Business has gone global with people having the ability to communicate across the world through video chats, social media, and email. For this reason it is easier to expand internationally than it was in the past as it is a far smaller gamble.
Success domestically does not guarantee success overseas so this is also something to keep in mind. Business is done differently abroad with different licenses to apply for as well as a completely new demographic. The important thing is to control details that can be controlled and stop worrying about things that cannot be. The following are tips that will help a business that is expanding internationally in order to set itself up for success.
Take a Look At Competition In Potential New Locations
Taking a look at the market the business is moving into needs to be done far before any other plans are made. There could be a case of zero demand for a service or product in another country. Take a look at whether there is competition as lack of competition is not always a good thing. This could be a sign that there is no demand rather than it is an open market ready to be profited off of.
Translating Important Documents
One important thing to consider is whether to use a translation agency or leave important documents to be translated by a nonnative speaker of the language. Translate company legal documents with a legal firm in the new destination as they will understand binding language as well as other policies in the country.
Hiring from the destination country will also be wise as being able to sell in a native tongue could be far easier than in English. This will help sales prospects feel more comfortable as not every likes to do business in English as certain details of a business deal could be lost in translation.
Understand Business Customs/Practices
Understanding business customs in the company’s new location is imperative. Refusing a cup of tea can be seen as extremely disrespectful in certain cultures while a handshake could also ruin a business relationship. Take the time to have staff research business customs and practices as well as ask those in the new location about them.
Every culture is different so things like timeliness in South America are going to be far different than in Germany. Germans are known for being prompt while in some South American countries a meeting time is more of a guideline rather than a set time. You are going to need to hire someone in sales that understands the culture and has common interests with the local people. For example, being able to talk soccer in most of the world can give a salesperson common ground.
Choose Trustworthy Employees To Help Grow The New Location
Sending trustworthy employees that will preserve brand values and image is important. The last thing a company wants is a new employee ruining their reputation across Europe before the business really starts thriving.
Depending on the location a company might have quite a few volunteers as people would love to move to Paris while a move to Moscow might be a bit too cold to have people lining up to move. Take time to evaluate whether an employee would be a good manager without very much guidance. A person could be a great employee but lack quite a bit in the managing realm.
Expanding internationally can lead a company to new heights but the financial risk that is associated with this reduces the number of companies willing to try. Use the above tips and do all of the research necessary to allow the company to thrive abroad.