Going global is a worthy endeavor for any company. But, like everything else, the opportunity comes with some challenges. If you plan to take your firm global, it’s essential to have a plan that will assist you to address major hurdles you’ll have to overcome to succeed. First, you need to find out if your company is ready for the challenges and what you will do to address them.
Some questions that can help you to make this important decision include:
Is your foundation at home stable?
If your foundation isn’t strong locally, then you are likely not ready to go global. Expanding internationally means growing a business that is already strong. It’s not about trying to increase your customer base.
What of the cultural differences?
Your current business plan may not be viable if there is a cultural difference between your local country and the other country you are targeting. You will need to change it.
What about competition?
Even though you may be doing very well locally, the global competition can be difficult for you to manage. Your competitors might be on a very different level. Failing to understand this will make you fight wrong battles, and you will surely fail.
Some of the challenges you will face include:
Being an established company at home, you have already gained a strong grasp of all the legalities that surround your business practice. The business processes are adapted to them too. Expanding means you will be in a world of different expectations and your systems will not be viable. It’s best to hire someone who will help you to adapt to the new changes as quickly as possible.
Communication is vital in any business. You may be used to communication in a certain language, but now you may be required to make some changes to fit in your new market. Is your team prepared for these changes? It’s not enough to have translators. You and your team can become effective communicators within the international system when you are schooled in diplomacy. This, again, calls upon having a strong base at home. If you employ well qualified individuals already, you’ll have fewer problems branching out. Having a diverse cast of MBA holders, marketing experts, and even someone with a masters degree in diplomacy can make international communications much easier.
At home, you have a clear budget for all the expenses, and you know your specific targets. When you expand internationally, you will have to deal with fluctuating exchange rates. All over a sudden you may start losing on forex inflation, and this can’t be good for business. Foreign exchange companies will help you prepare for the inevitability.
Now you can easily decide if you are ready to expand. You will face challenges that may even be particular to your firm but what makes the difference is how prepared you are. Understand what others have faced and this will bring you closer to success.