Making the decision to expand internationally is a crucial one for your business. Before you take your brand overseas there’s a lot of planning you should do first. There are many aspects that you have to take into account if you want to achieve your objectives.
Many organizations opt for doing their expansion themselves, and some others opt for contacting a global PEO to help them. Whether you want to carry out the process with your in-house team or you’d like to receive assistance, you have to have a complete understanding of what you need to do.
In this article, you’re going to learn everything you need to know about how to meet your international expansion goals. In addition, you can gain understanding about the basic aspects you must cover if you want to be successful. Let’s observe:
- How to go global: Basic steps to expand internationally
- Why do you need to prepare a business plan?
- How can you have the right infrastructure to expand?
- What are the basics to establish a solid team?
- Why do you need to focus on your product differentiation?
- How can you make your organization ready?
- How can Connect Resources help you with your international expansion?
1. How to go global: Basic steps to expand internationally
Perhaps you’ve been wondering the following question: What are the five approach to expand internationally? The truth is that embarking in the international expansion journey can be overwhelming.
Although it may seem like something highly appealing you have to think about it very well. Don’t go into this process without knowing exactly what you should and shouldn’t do. There are many aspects that companies overlook and that are crucial for having an outstanding development and growth.
1.1 What does “going global” mean?
If you want to take your business abroad, you must know what “going global” means. It refers to globalization, which means a complex and dynamic process where you look for the integration in another market.
Some of the aspects that you have to consider when you want to go global are the following:
- Deep understanding of your competition in your target country
- Analyze and carry out research about your targeted market
- Know the current local market trends
- Know how to drive growth
As you can see, it’s a process that involves several implications, so it’s not a decision that should be taken without enough consideration.
1.2 Are you ready for international expansion?
Since going global can have a significant impact in your existing business activities, you may be wondering if you’re ready to expand internationally. Although your business may be growing it doesn’t necessarily mean that you’re ready to take this step.
Some of the indications that your organization is ready to succeed in international markets are the following:
- After carrying out an evaluation, you determine that an expansion could be beneficial
- The expansion doesn’t take your business away from its core functions
- Your long-term business opportunities can thrive in an international market
- You have enough funds to sustain the grow in the international market
- Your business has a strong customer base in your target country
The most important before starting to plan your expansion is to know the current direction of your business. If everything indicates that your development can support and expansion and that it might be the best decision, then you should go for it.
2. Why do you need to prepare a business plan?
Developing a strategy and business plan is the most important when you want to expand internationally. Each market has its own conditions and you must be well-prepared to face them. You must make sure that your international business plan aligns with your localized strategy. This way, you ensure local and international success.
Some of the aspects you have to take into account are the following:
- Short, medium and long-term strategy: set different goals based on different periods. Keep in mind that they must be measurable and you should be able to determine cost/benefits.
- Metrics: if you want to be successful in your expansion you must know how to measure it. Set metrics for your goals, objectives and success so you can know if you’re going in the right direction.
- Business model: here you have to determine if you’d like to set up a branch, a separate company or if you prefer to work with an agent.
- Budget: it’s very important to determine the budget you’re going to allocate for your expansion
- Project plan: you must plan the development of your international project with commit dates.
3. How can you have the right infrastructure to expand?
Once you have your business plan to expand internationally you have to consider your infrastructure. It’s very important to know if you can ensure a smooth launch and you can only achieve this with a solid infrastructure.
Some of the most important aspects you should consider are the following:
- A robust management team with enough experts and specialists
- Plans regarding local and international decisions
- Resources to establish systems in your target country such as IT and telephone for customer support
- Resources to share data securely
- Policies and HR team to ensure compliance with local law and best practices
4. What are the basics to establish a solid team?
When you expand internationally you must ensure that you have a solid team. Your workforce is one of your most valuable assets. Therefore, it’s crucial to find the perfect employees.
It’s important to have local presence in your host country because this way you can ensure ongoing operations. Thus, you must decide if you want to establish an entity or find a partner. Having a local presence helps your business to be in advance regarding your competition.
4.1 Local office and team
When it comes to international expansion, you must have a complete understanding of your new market. You can achieve this by setting up an office and having a team working for you in place.
Some of the reasons why you should have a solid local team are the following:
- Excellent management of your company’s expenses
- Total compliance with local regulations
- Improve your company’s communication when selling the product
- Have a better understanding and approach for the local market
- Access to local business contacts
However, if you don’t have enough resources to do this, you can contact an agency. A Global PEO like Connect Resources can help you understand the local language and comply with local regulations. You don’t need to have an office because we will be your allies in place.
4.2 Is outsourcing a good solution?
If you’re a small or medium-sized business, you don’t have to carry out all of your business functions regarding your expansion yourself. You can take advantage of outsourcing to help you alleviate your burden.
You could outsource your interim leadership, payroll, tax management, HR, immigration, and many more. Therefore, it’s a great solution if you just want to focus on your core functions. A local partner can become the perfect support for your in-house team.
5. Why do you need to focus on your product differentiation?
When you expand internationally, you’re entering a new market and it’s crucial to make your product to stand out.
Keep in mind that product readiness is a major part when it comes to expanding. Before starting to plan going global, you must carry out a product analysis and then work on your product differentiation.
5.1 What is “due diligence” and how can it help my business?
The due diligence is the first process you must carry out when you’re planning taking your business abroad. It consists in the following:
- Market segmentation analysis based on how the product will sell in the local market
- Evaluate your product against local products with a product gap analysis
- SWOT analysis
- Determine market size and how long will it take to your product to reach your target audience
Once you gather all of the information, you can define your product. Keep in mind that it’s best to satisfy a demand that’s not covered by any other local company. This way you ensure your product will meet local needs.
5.2 How to carry out product differentiation?
Once you know your product is ready for your new market, you must develop a strategy and ensure its readiness.
For this reason, you should consider the following:
- Ensure your product meets local regulations and it has the certifications it needs
- Pay close attention to translation and the way you communicate with your audience
- Have your patent and trademark (it’s best to have your ideas protected against copies)
- Ensure quality tests give great results
- Develop a local logistic and distribution plan
- Develop your sales methodology
- Have a comprehensive marketing plan
- Review your pricing model and make sure it adapts to your host country
Keep in mind that your go-to-market strategy must adapt your target audience. Some of the things you do in your home country may not fit your host country. For this reason, the due diligence is highly important.
6. How can you make your organization ready?
Readiness on several levels is an important aspect when it comes to expand internationally. There are many areas in which you should be ready before your expansion.
6.1 Organizational readiness
What are the five approach to expand internationally? Having organizational readiness is one of them. When you go global, you’re clear that you’re going to find several cultural differences. For this reason, you have to be prepared in many areas.
You must implement policies and procedures that ensure employee commitment and a smooth international operation. Therefore, you must consider the following:
- Organizational structure that aligns to your strategy
- Handbooks, policies and procedures that adapt to local laws and to your company
- Offer a competitive benefit package that attracts top talent
- Competitive compensation based on local law
- Outstanding management of your HR and payroll
- Train your employees regarding local customs and culture
6.2 Tax readiness
Finances are a big deal when it comes to an International business expansion strategy. Therefore, you should be ready in the following areas:
- Accounting, payroll and tax filing
- Reporting sales and taxes
In this regard, you must ensure that you have a proper finance structure to handle taxes. You should plan this in advance so when you begin your expansion you don’t have any issues. In addition, you must ensure that you meet local policies and rules regarding taxes.
6.3 Legal readiness
Legal readiness should be part of your International business expansion strategy. Having compliance with local laws and regulations is a priority for your organization. If you don’t want to incur in any liabilities, you must have a solid legal team.
You can decrease the risk of non-compliance by implementing the following:
- Develop commercial agreements
- Ensure you get all the certifications you need to work legally
- Review the regulations that apply specifically to your industry
- Have a legal team that handles legal aspects such as immigration and shipping
If you don’t want to deal with legal matters, you can always find a third-party that does it for you. Connect Resources can ensure total compliance with your international operations and you won’t have to worry about anything.
7. How can Connect Resources help you with your international expansion?
When you’re planning your international expansion, you need to have the best partner by your side. Here in Connect Resources we can help you meet your strategic goals regarding your company’s growth.
We have a team of specialists readily available to solve all of your inquiries. We can provide you a top service that matches your specific needs. With our help you won’t have to worry about anything since we got covered everything. Start boosting your operations by going global with the assistance of our comprehensive service.
Would you like to contact Connect Resources for hiring and recruitment services? You can call at +971 433 166 88 or send an email to firstname.lastname@example.org, and you’ll talk to one of their representatives that will gladly answer all of your questions