6 Important Questions To Ask Before Expanding Your Business Overseas

The lure of the international market can be attractive for business owners. Having become successful within their home country, they might decide to expand further by making inroads abroad. By doing so, they might extend their profit margin, discover new business opportunities, and, as they make their presence felt overseas, grow their brand. Considering the benefits then, this might be something you want to consider for your business.

Of course, the decision to expand overseas shouldn’t be taken lightly. Before you start pushing for a global reach, you need to be ready for the move, as if you make any mistakes in the process, your business might suffer.

These are some of the questions you need to ask yourself before you expand.

1. How will I expand?

There are two ways to expand globally. One way is to establish a physical footprint overseas, perhaps by sending some of your current employees abroad to open up and manage new business premises. Another (and logistically easier way), is to expand through e-commerce, letting your website be the face of your business as you try to reach new markets. You then ship your product overseas rather than selling it from your new business premises. There are advantages and disadvantages to both methods, so do your research online after considering the rest of our article.

2. Can I afford to send employees abroad?

In whichever way you expand, there is still value in sending your employees overseas. If you are building premises abroad, then you might want to send somebody across to oversee the work being done. You might also need somebody to manage your new operation and to train up new employees from the country you have entered. If you are intending to expand digitally rather than physically, it is still worth sending an employee to the countries you plan to target. This way, they might gain valuable information about the market you are trying to reach, especially if they spend time with other business owners, as this might help you tailor your marketing approach to international demographics.
However, sending your employees abroad can be expensive. You will have to pay for travel, for starters, but the biggest expense might be with accommodation. If you’re expecting your employees to live abroad for an extended period, then it’s only fair that you pay for some or all of the costs involved – including mortgage or rental costs, as well as insurance, tax, etc. You will need to do your research too, as some accommodation might be off-limits to foreigners abroad. As is the case with hdb bto eligibility in Singapore, unless certain criteria are met.

3. Are my employees willing to move overseas?

If you’re expanding digitally, then your employees might only be traveling overseas for a limited period. They might not mind the opportunity; as provided it’s an all-expenses-paid trip, they might see it as a bit of a working holiday. However, if you are expecting one or more of your employees to uproot themselves for an extended period, then you might have more resilience from your staff, especially from those people who have a family to consider. After all, would you be happy to move abroad for a longer period of time? Your alternative might be to send people across on a short-term basis to train up new staff, so consider this if your employees are less than happy to leave their home country for long.

4. Do I understand the country I intend to target?

Will your brand transfer to a foreign culture? Are there particular laws you need to know about, such as those related to employment practices? What about shipping procedures, tax regulations, international agreements, and changes in culture? And will you need to customize what you sell to appeal to new demographics? Important questions all, and you need to work through each one with the appropriate research, so you don’t make any blunderous errors in transition. Hire an international market research firm to help you know more and develop efficient practices, or do your own research by looking online and speaking to business professionals overseas. You might decide to change your mind if you discover the transition is logistically too difficult or that it won’t be cost-effective, so do all you can at an early stage before you set about making concrete plans for your international expansion.

5. How will I overcome the language barrier?

This is a biggie, because if you can’t communicate with people overseas, how will you expect to do business with them? You need to find ways to overcome the language barrier then, such as by training yourself or your employees up in the language of the country you intend to target, or by hiring an interpreter for your company. If you’re only planning to expand your business internationally online, you will also need to develop a new website, using the language and the currency of the country you are targeting. In all of your communications, ensure you use the right wording too. Certain phrases, even when translated, can be misinterpreted, and in a worst-case scenario, you might make a cultural faux pas. Educate yourself and your employees then, or, at the very least, seek professional assistance to help you.

6. Do I need to expand internationally?

Finally, this question is perhaps the most important one of all. While it might seem like a good idea to expand your operation abroad, would it be more cost and time-effective to grow your business in your own country? This way, you wouldn’t have to cut through red tape, invest money into a venture that might not succeed anyway, or pack your employees bags for travel. We don’t have the right answer for you, but you do need to consider the pros and cons before you put your plans into action.

Expanding abroad might be the best thing you ever do in business, but then again, it might also be your downfall if not everything goes to plan. Think carefully then and commit to further research if moving into an international marketplace is something you have been considering for your business.

This is a contributed post.