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Building up your overseas business interests is more popular and prolific than ever before. Entering new markets means increasing your revenue potential, diversifying your talent, broadening your product scope, and improving brand recognition. The rapid change of competition also drives global integration as companies rapidly seek to expand their market and market shares. 

Yet these moves are ambitious and can easily get out of hand without careful planning. Companies big and small need to understand what they are getting into when expanding into international markets and the most common challenges that arise. Yet, for those that navigate these treacherous waters, international markets present a tantalizing goal. 

Picking the Right Foreign Market

So you want to go global, but have you thought about where? The world is a big place, and not every market is a good fit for your company. Often managers and entrepreneurs will select a foreign market because they like the idea of operating in a certain country. This is an approach that is hard to avoid, but there is a categorically better method for selecting which foreign market you want to enter. 

The final decision should be based on final projected profit margins, company priority, and – most importantly – objective data analysis. Data can tell you a lot about how your company will operate in a foreign market because you aren’t the first to try entering that market. You can learn from the processes of others and compare that to modern data about how a market’s economy works. Once you have a solid plan of action, you can start to make moves, but remember to proceed with caution and have backup plans. 

Adapting Your Business Model to New Cultures

When you enter a new market, there’s a lot to consider. You will be crossing into a region of different linguistic, religious, regulatory, and cultural traditions, and in most cases, they will not be adapting to you. Hiring cultural or translation services is key to making sure your adaptation is done in the correct way to make an impact in your new market.

Keep in mind that not all translation services will fit the part. Observations about minor differences in a country, for example, can be recognizing everything from regional dialects to cultural expectations of a city. This is where expat services can really come in handy, as their task is to understand the nuances and convey them to their clients. 

Adhering to Tax Codes and Compliance Issues

It goes without saying that government compliance codes and tax rates differ wildly between countries. This is one of the most frequent causes of headaches for business development in global markets because they can be easy to overlook. Setting up a legal entity in a new country necessitates an understanding of these often complex rules lest you become eternally tangled in red tape. 

Hiring local consultation is a good way to approach this problem, but so is approaching new markets slowly and with care. Many cities want to attract new businesses to their shores. Working with government agencies may be slow and full of scheduling conflicts and misunderstandings, but with good translation help and patience, the path forward should appear.

Matching Benefits to What Locals Expect

Building a team for your foreign branch means managing human resources, health and benefits, and onboarding and offboarding policy. If you already have a company set up in your home country, you may think you know how this works, but foreign nations have different requirements for these tasks, and foreign locals have different expectations. Without looking carefully at these differences, your budget and start-up time expectations will likely fall behind or rapidly get out of hand. 

Hire a professional employer organization to help create a comprehensive talent acquisition method. They can also help manage these employees once onboarded, making this task relatively hassle-free. 

Predicting Volatile Global Markets

Sometimes entering a new market comes down to luck. The global market is ever-changing, and companies big and small with similar aspirations all agree that it is incredibly difficult to predict.

Thankfully, the digital age has brought with it the ability to test products in new markets with little to no distribution costs. You can observe how your new user base responds to a product placed on an online market before investing further or in a different direction. The internet has rendered this once key challenge one of relatively low risk. 

Conclusion

The global market cannot be ignored. Businesses worldwide are as eager to enter new markets as new markets are to have them. Entering a new market requires a careful and rational approach, and there is often lingering uncertainty even if everything goes right. Yet the tantalizing draw of new customers is too hard to ignore for nearly every company on the planet and for good reason. So get out there and start planning your international move while the market’s fresh, and soon you could be seeing the dividends of your dreams.