For small and emerging businesses, taking your business global is a complex – but potentially lucrative – undertaking. Scaling across borders can be a challenge, and in some cases, businesses simply aren’t suited for international expansion. For those that are, it’s important to gain a full understanding of your target markets, local market trends, and competition before jumping into international waters. So, how can businesses best take advantage of globalization? Check out our top 5 tips for helping companies expand internationally to find out.
1. Do your due diligence
73% of decision-makers believe that their business would be more successful if it had greater access to international markets. But before taking any concrete steps, it’s important to understand exactly what impact international expansion will have on your business. There are a couple of different ways you can do this. Producing a product gap analysis can help you work out whether there’s a demand that isn’t being satisfied by local companies, while market segmentation analysis can help determine whether your product will actually sell.
2. Produce a global business strategy
For an international business competing in the global marketplace, it’s extremely important to have a global business strategy in place. The nuances of every local market demand a localized strategy that drives success on the ground while remaining integrated with your company’s overall mission. Important elements of any global business strategy include short/medium/long-term goals, top-down budget, and business structure (i.e. company versus sales office, etc.). You should also produce a go-to-market strategy addressing sales, branding, marketing, and pricing. This will make sure that you’re able to hit the ground running when moving into new territories.
3. Ramp up your organizational and product readiness
After conducting a product gap analysis, you need to ensure that your product is market-ready. There are several different steps involved in this process. Most importantly, you should ensure that your product is compliant with government and industry-specific regulations. You should also work out whether any localization is needed and initiate a patent/trademark review to prevent local companies from copying your idea.
In addition to product readiness, you should ensure that your company is ready to become a global business organization. So, what does this involve? For a start, you should draft policies and procedures that comply with local requirements while remaining balanced against your overall corporate vision. It’s also important to develop compensation packages based on local standards, as well as benefits programs that can attract qualified local candidates.
4. Ensure legal, tax, and finance compliance
When considering how to take your business global, it’s important to put strong legal processes in place to mitigate any potential commercial risks. This involves creating localized commercial agreements and reviewing industry-specific regulations. It’s also important to set up the proper tax and finance infrastructures. This will ensure that you’re able to conduct reporting in a timely fashion while adhering to local laws.
5. Use GoCardless for seamless international payments
When you’re an international business competing in the global marketplace, you don’t want your payments process to take up any more time than necessary. An international payments system like GoCardless could be an excellent addition to your global business organization, providing you with the opportunity to collect recurring payments from your customers’ bank accounts overseas and settling them back in your home country.
We can help
Expanding internationally? GoCardless have created the first global network for recurring payments. Collect payments in your customers’ currency, and settle in your own, at the real exchange rate. All with just your existing bank account. Learn more about international payments.