5 Dos and Don'ts of Taking Your Business Global

Going global is one of the best ways for any business to increase its sales and growth. Although, you may have to navigate through complex local laws, cultural barriers, and political issues if you take your business global. However, expanding overseas is always worth the risk due to the potential increase in profit. While there will be obstacles, you can address them appropriately if you plan. Therefore, if you are wondering how to take your business global, here are a few dos and don'ts that you need to remember: 

Dos  

These are some of the things that you must do if you are thinking about starting an international business: 

Conduct Sufficient Research  

Research is the most crucial aspect before starting an international business. You must learn as much as possible about the country's political and economic climate. Before establishing a global business, you must possess enough knowledge about importation rules, potential tax issues, and cultural differences.  

While all this can be found online, you can always send your team to gather on-ground experience. There are a few things that you will not find in online research. For example, the routes to and from your place of work can take much longer than the ones suggested on the internet. Such a thing may happen due to poor road conditions or local infrastructure. Therefore, you must conduct research before taking your business global. 

Use Professional Translators  

Language can play a key role while setting up a small global business. A brand slogan in English can mean something entirely different in any other language. Therefore, you will need the help of professional translators. A simple translator can help you with the menu or while shopping or provide a narrative about a tourist attraction. However, they cannot help you while negotiating with property managers or utility companies. Therefore, you will need professional translators who can handle such requirements. 

Employ Local People 

Apart from speaking the local language, such people can also help you find other people with work experience. They can help understand the local culture and the various idiosyncrasies of dealing with local officials and clients.  

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Screen Your Local Partners  

However, you must be careful while picking your local partners. You must do your homework on legal restrictions. You can also hire companies who can outsource your screening needs. You will also require sound legal advice to avoid such an agreement that will cost you money and negatively impact your business.  

Select Your Overseas Locations Carefully 

Before learning to take care of business globally, you must learn about locations where your products and services can succeed. Apart from the financial risks, you must consider the risks of visiting those areas or of existing personnel who might relocate.  

Don’ts  

These are some of those things that you must never do while starting an international business: 

Never Underestimate the Costs 

Since you are taking your business global, you must consider the costs and investments required to operate in a new market. However, never underestimate them, as they can be significantly greater than you had expected. You must plan your budget appropriately and sell your products and services at the right price. Otherwise, you will not face losses but may not even have enough margin to operate. 

Do Not Expect the US Model to Work Everywhere 

Another mistake most global businesses make during their initial days is expecting their business model to be successful everywhere. You need to spend time and resources understanding how to reach your target audience. You may also need to modify your products and sales methods to reach new markets.  

Never Assume That Your Intellectual Property Is Safe 

You must never assume that your intellectual property is safe. Just because a country has laws related to intellectual property rights does not mean those laws would be enforced. You may be operating in a country that may not have the ability to implement such laws. Therefore, you must take measures to protect your intellectual property. 

Do Not Sign Any Exclusive Distribution Agreements Without Time Limits 

You may often be pressured or tricked into signing exclusive distribution rights by local distributors. While it may seem the easiest way to gain access to the markets in any new country, you may regret it later. Such agreements can limit your growth potential and profit margins if you fail to include marketing requirements, sales goals, etc. Even if you decide to go ahead with such agreements, make sure to limit the term of the contract and get it approved by a qualified local attorney.  

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Do Not Rely on the US Embassy to Bail You Out of Every Problem 

You must have analyzed all the risks before starting your global small business. Since you will operate in a foreign country, you will remain under its rules and authorities. Therefore, do not rely on the US embassy to assist you if you or your business get in trouble. While the embassy can help you conduct health and welfare checks and obtain local council, that is all they can help you with.  

While starting an international business may sound exciting and lucrative, there are several ifs and buts that you need to consider. If you have a reputable name in your own country and feel that taking your business global might be the next practical step, then you must go ahead but remember to do your part. Try to learn about the culture and people of that country apart from gathering information about its political and economic scenario. Make sure to balance the risks against the rewards. By following the abovementioned points, you can also stay safe in a foreign country and earn maximum profits.