Taking Your Business Global

Pivot International  |   December 13, 2017

Just a few decades ago, doing business on a global scale was the purview of few but the biggest, most resource-rich corporations.

Today, that’s no longer true. As the internet has made the world smaller, countless small- and mid-size businesses are making the move to doing global business every year.

But that doesn’t mean that it’s an easy – or necessarily successful – process. There’s a lot of work that has to be done before, during and after a company decides to take their business worldwide, and every step is an important one. Here are some of the most important things that a company can do to make sure they’re going global the right way.

Make a plan

Your company started with a business plan, and your global venture should, too. Avoid making assumptions about how the expansion will unfold. Just because a process works well domestically doesn’t mean it will necessarily work on a global scale.

Nail down product distribution

While the manufacture of your product might not be affected by your decision to take your company global, product distribution most definitely will be.

Have you evaluated the different types of distribution available to you in different companies? Have you reached out to any of the foreign subsidiaries or agents of the distributors you’re already using? Remember, it doesn’t matter how good or useful your product is if you can’t get it to the customers who want it quickly and cost-efficiently.

Consider pricing, cultural, and regulatory differences

It’s important to do as much analysis as possible of the way other countries handle pricing, and what their product regulations are. You’ll want to ensure you have a legal team on board who can navigate the different regulatory environments in the countries you’re expanding to.

In addition, if you’re planning on setting up an office or headquarters in another country,  you may have some cultural hurdles to clear when it comes to hiring and onboarding new employees. Make sure you have a team in place who can help your new employees transition smoothly into their roles.

Prepare for your target country’s business politics

In any country that you deal with, the government will play a role in how you conduct business. The only question is to what extent they’re involved. What kind of interest do these governments have in your products or services? Are there any tax incentives or trade policies that the governments are offering that you can take advantage of?

International business is something that many countries want more of, so there may very well be ways that you can work with a given country’s government to gain a foothold in their marketplace. And the sooner you know about those ways, the better off you’ll be.

Going global is a daunting task to be sure, but with the right amount of planning and foresight, it can be an extremely rewarding decision. The keys are knowledge and preparedness; your success around the world depends heavily on those two factors.

For more, read my post “3 Global Realities That Every CEO Needs to be Aware of.”