In a time of turmoil between two of the world’s largest countries, it becomes more important than ever to be wary of differences between laws from different countries. Especially for aspiring entrepreneurs looking to expand across seas, keeping in mind foreign policies may very well be the difference between successful expansion and immediate failure. Here are some quick notes on things to watch when considering expanding your business to a new foreign location.
House Rules
Even for some more minuscule laws, different states, counties, and countries have different stances on the allowability of certain objects and actions of companies that reside in that area. Remember that the local regulations of any new location you want to expand to should be your top priority. Always look into the laws related to your area of business in the areas you’re planning on expanding to, ensure no easily preventable issues might come up when putting your expansion plans into practice.
Locale Change
The second most obvious issue to bear in mind when considering expansion, is the direct differences in cultures. Advertisements might read completely differently as some countries read left to right instead of right to left. Some symbols might prove repulsive to the natives of one country. When looking to go international, it is always important to keep in mind how certain aspects one might consider fine and dandy may be viewed as potentially sacrilegious in other parts of the globe.
Differences in IP
If you need to trademark an IP for your business when expanding, always remember that some countries utilize a more “first-come, first-served” style of policy when dealing with intellectual property rights, one of the most notable ones being China. When a new work is created in a country like the U.S., copyright is automatically applied, although registering properly provides additional protection. In China, the first person to apply obtains the rights, so maliciously registering trademarks from other countries in China is an outcome with a nonzero chance of happening.
Demand for Demand
When assessing the idea of expansion for a foreign locality, it always becomes important to ask the question, “is there demand for my business?” Unsurprisingly, different countries have different wants, and not all business ventures may prove to be good ideas in a new location overseas. The economic and cultural climate for some countries can prove to be ill-suited for certain endeavors, such as Mattel’s failed expansion in China, where the preference for more educational toys for children made the average Mattel product appear frivolous and meaningless in comparison.
The Wrong Advice
If your business is big enough that your consumer base is clamoring for your expansion, be sure to always consider the bigger picture beyond what your audience in your business’s origin country thinks. Considering your business’s public presence and how expansion might be viewed by those outside of your main consumer market. That isn’t to say you should ignore the consumers of your locale; rather, you should always consider the thoughts of the other potential consumers as well.
Conclusion
Expanding a business to an entirely new region brings an entirely new set of issues that can ultimately be prepared for, given time. Important notes such as local regulations, wants, and needs, if not considered, will most likely tank a business’ reputation outside of its home country. Always make sure to check up on your knowledge of wherever you’re aspiring to expand to and ensure your business stays successful overseas.
