Taking your business internationally holds the potential of amazing growth, greater revenues, and strong brand recognition. However, there are a number of issues you have to tackle when taking your product to new markets that you don’t have to deal with when only dealing with the domestic market.
Here are three considerations to make when building an international business.
Cultural Considerations
There are a number of ways that dealing with new cultures can impact your product. Needing to deliver product information and marketing campaigns in a new language is only the first hurdle. Understanding cultural differences is another, whether it impacts how your product is marketed, how it would be used, or even business attributes considered offensive.
For example, your product or service may not translate well to the local community without changes. Price and financing options may be an issue too, where your flagship product is seen as a luxury, even though you may be marketing it to the general masses.
One way to build your brand globally is to use social media. Fahad Al Rajaan, chairman of Wafra Investment Group, uses his Twitter account to discuss global issues, as well as build awareness about his brand. You can also start building awareness by using various social media platforms to build a presence in your new market.
Legal Considerations
International business raises a number of legal concerns. Tariffs, duties, and regulatory barriers all need to be addressed. You’ll probably have to deal with customs when shipping products internationally; export licensing procedures may come into play.
You may have to deal with radically different labour laws and corporate organisation practices when providing services in another country. Trademark requirements, liability rules, and differing rules for handling customer disputes have to be addressed as well.
Planning Considerations
Going global, whether you’re just expanding into one country now or truly offering your product worldwide, should involve major planning efforts. You need to have a business plan to define your goals, your commitments, and your long-term intentions.
How much will you be willing to invest in the effort? What do you consider your metrics for the effort? Is everyone on board for the organisational changes this creates, whether you’re partnering with a local distributor or creating a new business division? Are you going to grow slowly through gradual expansion? Are you going to target a specific narrow niche and try to sell to everyone worldwide who may be interested?
You’ll also need to deal with foreign currencies in most cases. There’s a chance there will be limits on currency repatriation; you’ll need legal and accounting advice to avoid problems here, unless your plan is to reinvest profits in that country for the long-term. You’ll probably also need advice on how to pay taxes in these new countries.
Conclusion
Becoming an international business dramatically increases the complexity of your operations, but it is manageable when you have a plan and have already taken all of the key considerations into account. Do your homework in advance to maximise your odds of success.
