Going Global? 5 Things To Keep In Mind As You Expand Operations Overseas

International operations require more than the desire to do business in other countries. Some considerations that are frequently overlooked can be costly for your business. Here are three ways to ensure success in global business ventures.  

Expanding into new territory is an exciting venture, but not without its risks. Before considering globalization, you should have a trustworthy International Attorney on retainer to ensure a smooth transition. In partnership with your attorney, there are three critical points of action that will help you to avoid any catastrophes in the process:

1. Secure Strong Partnerships: Once your business is operating on a global scale the stakes grow increasingly higher. Any small errors along the supply chain could spell catastrophe for you or your end-user. Not only is it imperative that you and your direct partners have strong partnerships and contracts, but it's important that those third-party vendors and partners also have ironclad business relationships with the remaining members of your supply chain, and that those relationships are in good standing.

2. Conduct Thorough Research The Countries You Intend to Expand Into: It may go without saying, but no assumptions can be made regarding common-law or policy when discussing globalization. Statutes, ordinances, and laws concerning foreign business entities vary from country to country and are subject to change. This is especially important for those businesses looking to trade with developing nations whose policies and rules may still be in flux. It will be vital to be aware of what laws your business is subject to as a result of trade with foreign countries. Not only should you be aware of local laws, but it can sometimes be useful to keep an eye on policies, and even seek local counsel.

3. Consider Local Culture & Adjust Accordingly: One of the most common reasons companies fail when attempting globalization is ignorance and incompatibility with local culture. Adequate research can make or break the success of any global expansion. Something as innocuous as using the wrong color, or an offensive term in the local language could derail your business success when attempting to expand. When researching local customs, and cultures it's best to consult local business professionals, and study what is and is not working for them. It also is imperative to be aware of local superstitions, practices that are uncommon in the United States that may need to be considered, and local attitudes and policies. This information will allow you to build Marketing and User Experience plans that are well-received in the local market.

4. Conduct Intensive Risk Assessments: Equally important to the research required t o determine the likelihood of success, is having an accurate risk assessment in the event things go sideways. When considering expansion into foreign territory an internal and external SWOT analysis will identify potential weak spots within your organization and the local markets that can be navigated before the expansion begins. This tactic ensures that those weak spots are covered, and any potential breakdowns of operations or communications can easily be navigated in the moment. Conducting SWOT and risk assessment on the front end will mean giving yourself and your team advanced time to respond to the crisis.

5. Formulate A Solid Back-Up Plan: Sometimes, even the most prepared businesses can be sidelined by unforeseen circumstances. No one is exempt from a force majuer - such as a national emergency, war, or economic collapse. Your research could be thorough and fail to identify potential risks. For this reason, it's essential to have backup plans for your backup plans. Any number of issues could arise sending you into panic and financial ruin if not anticipated. When choosing business partners and affiliates, secure relationships with alternative suppliers, and partners even outside of the country in question. This way, if any one leg of your supply chain fails, your business operations in the country in question don't also collapse.

This may feel overwhelming but don't feel under water. The navigation of the complex global landscape is easier with the assistance of experienced legal counsel. If you're ready to expand into the global market but have yet to delve into the complexities, contact us to schedule a FREE consultation on global expansion. Our team will review your current business practices and research local markets to ensure the best possible outcome in your globalization ventures. If you're ready to start showing up on the global stage, visit the ‘Contact Us’ tab to schedule your consultation.