Is It Possible To Run Two Businesses In Different Countries?

Running one business is hard enough, so starting a second one and trying to juggle the two is a huge challenge. It’s an even bigger challenge if those businesses are in different countries and you’d think that nobody would attempt to manage two businesses across international borders but people do. If you have your own reasons for considering the same thing, you should know that there are many hurdles to overcome. 

You have to understand two sets of business and tax regulations instead of one, manage two teams (sometimes in a second language), and organize the finances of two businesses in different currencies. Your communication strategies must also be well-defined and utterly reliable, be that the VoIP system you use for the office, or the home office phone system you use for remote work.

It’s a lot to take on but it is possible to make both businesses successful if you do it right. Here’s everything you need to know about running two businesses in different countries. 

Choose The Countries Wisely 

When choosing a new country to open your business in, think about relations between that country and the other countries you have business interests in. Are there political tensions between the two? Is there open trade? Can money easily be moved around? You can easily keep and operate a UK bank account from Australia and move money between the two countries because they have good relations. However, if you have business interests in the middle east, for example, and the political situation with western nations is not great, that will cause problems. 

Think about cultural and language barriers too. If you don’t mind paying for translation services and your own language skills are adequate, you are fine. But it makes life easier if you choose a country with a high percentage of English speakers. In terms of cultural barriers, consider how business is conducted in that country. Everywhere has its own rules and etiquette that you need to get to grips with, so choose a country where business is conducted in a way that you like. 

Research The Markets Thoroughly

Overconfidence is the death of many businesses, especially overseas. Strategies that work at home don’t necessarily work in other countries because of cultural differences or a difference in demand for certain products due to lifestyle factors. If you want to break into overseas markets, you need to understand the locals and what makes them tick. 

Build Independent Teams 

Micromanaging both businesses simply isn’t possible, and even if it were, it’s not the best way to handle things. Your aim should be to create independent teams in each business, so you can let them handle the day to day operations, and then consult you when big picture decisions need to be made. If both businesses are reliant on your input on a daily basis, productivity will drop across the board because you can’t be in two countries at once. A good hiring process is vital to your success. Finding reliable managers to head each business allows you to take a step back and leave the day to day operations to somebody you can trust. 

Take Advantage Of Cross-Pollination

Cross-pollination in business is an important concept to take advantage of when running two businesses at once. It simply means taking knowledge from one person and sharing it with others. In this case, it means taking what you have learned from one business and using it to further your knowledge in other areas. When you open a business in another country, you have a rare opportunity to gain a new perspective. Look at how they do things overseas and consider whether the same strategies might work back at home. Bringing in ideas from other countries will differentiate you from the competition and help you get ahead. 

It’s also worth remembering that some things are the same in all countries, so you can transfer knowledge from an existing business to a new one to reduce the learning curve for your team. If something works perfectly, don’t change it, just copy it. 

Don’t Underestimate The Value Of Your Presence 

Good communication is important and there are some amazing tech tools to help you connect with your team. Invest heavily in video conferencing and VoIP systems so you can stay in the loop, but don’t underestimate the value of visiting businesses in person. You are at the helm and your team wants to know that you are invested in their success. If they never see you, they don’t get that sense and they feel like an afterthought. By visiting them in person to manage any issues and have a catch-up, you show them that you are very much here to support them. 

However, finding the right balance is crucial. If you run multiple businesses across the globe, you could spend all of your time on planes, which has a big impact on you. So, be present at all of your businesses but remember to take some downtime too. 

Running two businesses in different countries is a struggle, but it’s not impossible. You stand a much better chance of success if you follow these simple rules.

This is a contributed post.