Every business should be built with growth in mind. Opening another location, offering another service, expanding your team and capacity. There are plenty of ways to grow, but few more exciting and potentially lucrative that taking your business international. However, it’s not a step to be taken lightly or hastily unless you want to sink serious investment cash into a far-flung place you may never crack. You have to make sure that you’re ready.
This is a contributed post and do not necessarily reflect the opinions of Meet The Harris Family.
Is there a market for you?
Before you make any plans, you need to work out whether it’s worth investing in overseas distribution in the first place. Researching international markets will help you identify whether or not there is room for you. After all, you might more competition in a different space than you have domestically, or your target market simply may not exist, since there isn’t the same interest in the products or services you offer. Make sure there’s a market there to crack, first and foremost.
Know the letter of the law
Compliance with the law is, of course, mandatory. Do your research on any regulations and standards that will apply to the products or services you aim to sell overseas. If you’re not just distributing, but truly expanding, then you should also work with a business attorney who can help you understand labor, environmental, and other laws that will affect how you do you business.
Find your reliable partners
Whether you’re distributing or expanding, having a network of partners is crucial. You may need to find an overseas distributor to carry your products, or you might need to find local service providers to ensure that your overseas offices are operating at full capacity. Doing your research online and looking to fellow entrepreneurs who have experience and ties in the area can point you in the right direction. However, a visit to make sure they’re a good fit and that you have the chance to scrutinize their operations may be a prudent move, too.
Get your accounts in order
Finances can get complicated when you factor in international business, especially when it comes to your taxes. You should have an international tax law firm on your side before you start spending anything, not after. Minimizing your tax impact, dealing with foreign tax credits, ensuring that you’re paying the right tax on transactions across international lines and the like are all crucial if you don’t want to deal with time-wasting and potentially expensive audits.
Break past the language barrier
Of course, if you’re selling products and services in a new country, you’re selling them to new customers, too. Customers with language and culture that you might not understand. Working with localization service providers can ensure that your company message and selling points align with the pain points and how they are expressed in other countries and help you avoid some translation faux pas that can impact your business reputation.
It’s no understatement to say that doing business overseas is one of the biggest and most demanding moves you can make. However, if you find the market and ensure the right setup, it can also be the most lucrative.
