It’s no secret that global expansion can provide your business with endless opportunities, however there is plenty of room for failure when you decide to start a business abroad. Essentially, you begin as the small fish in the big pond again, as even though you may already have a client base waiting for your arrival, you will still need to work hard to understand the local culture and financial situation. We’re here to help you to make the right decision though, starting with ensuring you renew EHIC! Once you’ve got all of the paperwork out of the way, you can begin to focus on the five following items.
1. Localise Your Ideas And Visions
When starting a business abroad in a country that you’ve never visited before, knowledge about the local culture is completely absent. However, it’s paramount for an entrepreneur to have some understanding. If you have access to a local mentor investor, this would be an excellent opportunity to reach out to them and ask for their guidance on the local culture and the buyer behavior of consumers all across the country. Alternatively, if you don’t have these types of resources, turn to LinkedIn and locate colleagues who can connect with foreign consumers.
2. Study The Competition
Before you enter any market, you need to conduct a significant amount of competitor research to understand how you’ll gain an advantage over them. You wouldn’t have entered the market at the beginning of your career without understanding competitors, so never bypass this step when relocating your business abroad. We would suggest studying 5 local companies at a minimum within the same market. Study their inbound marketing methods, their social media channels, their email templates – anything you can get your hands on.
3. Understand The Political Climate
With the correct planning, you can control every internal factor for your business, however external factors are a lot more difficult to control. One of the most important external factors to pay attention to is the country’s political climate, including its history of taxation. Upon starting your business abroad, the last thing you want is to lose your profits to unexpected taxation costs due to the changing political climate. If you plan to move to a country with a currently unstable political climate, it might be better to postpone your decision to move abroad, or simply decide to do so elsewhere.
4. Know The Skills That You’ll Need To Develop
Once you’ve managed to familiarise yourself with the surrounding competitors and local culture, you’ll need to consider the skill sets required to effectively run the business abroad. It’s popular for businesses starting abroad to employee expats as a significant part of the workforce, as this can make the organisation more appealing to customers originating from other nations. Usually, the best balance is to have a mixture of local and expat workers, as these will provide you with a vast combination of skills in order to secure success when working abroad.
5. Understand Your Audience
With numerous analytical tools available to us, you’re able to identify your target audience within a couple of simple mouse clicks. Deciding upon the ideal country to move to is completely dependent on whether or not the locals demand your services. By understanding your core audience and where they’re situated, you can make smart, tactical moves across the globe in order to gain access to the most fruitful markets, allowing you to generate larger profits.
Starting a business abroad is never a decision that should be taken lightly – instead, you need to conduct a large amount planning, which can often take at least a year until perfected. Once you’ve mastered your relocation abroad though, you can reap the benefits of having access to multiple markets across the world, opening many other doors for your company.