If you are in a place where you have spotted a niche for your business internationally – it can be a great opportunity for expansion and to generate a much bigger income. It can be much more difficult than you would first think, and there are a lot of things that you need to think about before taking this big step. We have outlined some of these below to make sure you have thought of everything before you go ahead with your big adventure.
Make Sure you have Capitalized on Local Markets
If you haven’t gained enough market share locally or nationally, make sure that that’s your fist priority. Without making a dent in this area first, it may not be a good idea to take your business internationally. Due to the online world these days, there are too many companies that can be taken in by digital marketing – and think that geographic locations are no boundaries but aren’t quite ready for it.
Consider Costs to Move Money
One thing that you will need to take into account is foreign exchange. This can be a little daunting for business owners and can also be more costly than you would think. When exchanging cash – you need to remember that actually you can lose up to 5% due to exchange rates, which means if your profit margins are averaging around 20%, then it will instantly drop to 15% if you don’t take this into account. There are some currency transfer companies out there, that can help you reduce the costs massively on this – so make sure you do your research first.
International business has much more risks than local businesses. You need to take into account political regimes, the difference in social cultures and dynamics and much more. This can be particularly problematic if you are looking to expand into a hostile environment. You may want to invest in security risk consultancy to make sure that you are properly prepped for delving into new areas that you don’t yet have experience in.
It May Take Longer than you Think
As you can see from the above – there is lots of prep involved, and lots to do – so it can take longer to break out into a fully international business than you think. You also need to take into account things such as time delays due to time zones and language barriers that can add on to the time. Foreign travel is also something that you will need to think about, as well as the jet lag! It can be time consuming going from country to country, and you need to make sure you have the relevant resources needed to cover this.
If you are looking to expand your business internationally – then it’s important that you take all of these things into account, and to take the necessary consultancy and advice to reduce the possible risks to this move as much as possible.