If you are toying with the idea of taking your business global, there are certain factors you should consider before doing so. While it can be very lucrative for your company to expand over global markets, it can also be detrimental to profits if you are not in the position to do so. So how do you make the call for your business? The following five points can help you decide if your business is ready to take the global plunge.
- Create an international marketing strategy. Know your audience in the target countries so that you are able to market to them effectively. It is possible you may need to localize your products and advertising to ensure you successfully reach your target demographic. What works for your domestic market is not guaranteed to have the same effect internationally.
- Check into tax laws for the countries where you’d have employees, if applicable. If you are planning on having a physical presence overseas, be it actual stores/warehouses or just simply individual sales associates, you will want to find out the tax laws and any other applicable legal information before hiring those individuals or starting construction on new facilities
- Know how you will be getting paid. Be sure to have an understanding of the country’s currency, and any payment methods you may need to be aware of. It is important to know if you will be able to accept payments via PayPal, for example, or if you will need to rely on something else, such as a letter of credit. You should decide on your preferred payment methods ahead of time to avoid any surprises later on.
- Use technology to your benefit. You can use social media, email, and cloud-based servers to ease the transition into the global market. However, it is important to research the use of these tools extensively within your new market before you launch globally to make the launch even more successful.
- Take a look at your current budget/success. Where would globalization fit in for your company? Are you successful in the domestic market currently? Knowing your company’s performance locally or domestically can help you figure out the best strategy for taking your business to a global level.
If your business has successfully gone global, what tips would you share for others looking to do the same?