Launching a company abroad - Four things to do first
If you are thinking of expanding your operations into international markets, it's a good idea because you might open the doors to more business, networking and growth opportunities.
Probably, your products are more appealing to international markets, or you want to venture into an untapped business friendly environment. Whatever the reason, preparation makes your efforts fruitful. Here are things you should do first.
Understand the legal implications
Is the new region foreign investor friendly? This will make it easier to set a successful business in the region. First, understand the legal requirements for international business owners.
Because you might stay in the country for a while as you study the markets and create the right networks, you'll need a visa as well.
Is it possible to apply for indefinite leave to remain, and how long does it take to acquire it? Note that you'll need to get in and out of the country at short notice.
You need your migration documents ready to allow this. Talk to an immigration expert when you need help to process your documents quickly. The expert will also advise you on the most appropriate visa type.
On the same note, understand the tax requirements in the new region. You may have to notify your country about your international business to avoid paying tax twice.
Understand the language and culture
Learning the local language enables you to communicate with clients and other stakeholders effectively.
You might hire an interpreter at the start, but understanding the language helps you to easily integrate into the community, making it easier to run the business.
Also, understanding the culture is vital when creating your products or brand. Make sure the language, packaging and products are culturally acceptable.
As you start branding and marketing campaigns, you might want to involve the local experts. They will guide you on the best approach that will be culturally acceptable.
Understand the economic climate of the new market
Study the new market's economic climate, particularly the region you're launching into, before setting the business.
Take time to understand the target markets' financial stability. What's their buying habits, income distribution, crime rate, education level and technology advancements.
You cannot get most of these findings when checking online GDP indicators but spending quality time with the local community. Set some time aside to interact and learn your target market's lifestyle and habits.
You need tangible evidence that your target market has the financial capability to do business with you.
The cost implications
As you create a business strategy, take time to draft the budget. Remember that it might take some time before the business is fully independent, which means you'll have to support it from your pocket.
How many employees do you need and how much will you pay them? Will you set a complete processing plant or ship ready products from the headquarters? How do you intend to finance the project? Can your finances sustain it for the next six months?
As you venture into international markets, consult widely, especially if it's your first overseas business. As you will realise, the benefits are worth the risk.
