However, expansion is often the only route to continued and consistent business success, let alone continued growth and development. What are some essential considerations you need to make before you open up shop in another territory?
#1 – Your Goals
Any business decision needs to be shored up with robust planning – which, itself, necessitates a clear understanding of your key ambitions. This is all the truer for decisions that are inherently ‘international’, as they are more complex and expensive than any domestic expansion or transitions.
Speaking of expense, your budget will naturally dictate the scope of your aims. As such, you will save yourself a lot of difficulty by tempering your aims to realistic levels. You might want to guarantee to be the first to market in a new territory, but this can require significant investment in marketing and logistics; you may be better suited to settling for a regional engagement milestone.
#2 – The Region
Next, it is crucial that you personally, and fully, research the region in which you are opening your new branch or business. The more you know about your new host country, the better – not just for the establishment of your branch, but also for your comfort and safety.
Achieve the best of both words in such a situation by finding accommodation and authentic restaurants where you can learn more about the nation you’re working in and its diverse culture. Wherever your desired business venture, whether that’s in Europe or Asia even, ensuring that all your belongings and possessions are safe and secure in a serviced apartments.
You will also need to understand some key differences in culture between yours and your new host country. Not only might there be more banal cultural barriers, such as the significance of certain hand signals, but also rules regarding dress or behaviour in public. For example, in Japan you must avoid looking directly into someone’s eye.
#3 – The Language
While it is true that English is one of the primary languages in global business, it cannot be presumed that everyone you wish to deal with will speak it. This is particularly true for business capitals outside of Europe, where non-Latin languages will be much more prevalent. To put your best foot forward in your new base of operations, you will need to acquire at least a conversational level of skill in their language.
It is for this reason that many business advisors suggest hiring a ‘spearhead’ team with the express purpose of setting up your new branch or regional premises on your behalf; a team that would already meet key criteria such as fluency in local language and wider understanding of the region’s markets. Still, your understanding of both will be key to fostering new and long-lasting partnerships with local and continental businesses.
