How to Expand your Business Globally

Thinking about kickstarting your global expansion strategy? If you can complete the process successfully, it will open doors to new revenue streams, a diverse talent pool, and many more profitable opportunities.

International expansion demands compliance, acute growth, and thoroughly strategic direction. Below, we’ve covered the most essential points for a business looking to expand globally for the first time.

1. Set yourself up for success

Expanding operations overseas is equally daunting and exciting. While you might be full of anticipation and hope, you should also be aware that it’s a very risky time for you and your business.

Whether you’re looking to acquire a business, grow organically or set up a joint venture, successful expansion requires an ambitious yet realistic approach. You should be honest with yourself and consider the following:

• Capacity: Can your business handle the time and capital requirements for your proposed plans?
• UK business: How will the expansion impact your business in the UK, if it continues to operate?
• Support: Do you have the right team with you to propel your initiative and drive results?

1. Know your plans

Being aware of your specific goals and initiatives will be crucial, allowing you to develop an informed strategy and structure. With a detailed plan in action, you can also set parameters against which to judge your performance.

If global expansion is a long-term proposition for your company, you’ll need to get to know the area. Consider the local language, cultural principles, and how to approach future trade partners or stakeholders.

If you’re thinking of building a wider global team, using an employer of record can facilitate the hiring process by ensuring compliance with local employment laws. Hiring in foreign markets should be approached with knowledge and caution.

1. Check your legal obligations

How you intend to open overseas will determine the tax and legal implications of this venture. Do your research and make sure that you understand the impact of the legislation surrounding your plans. The process and requirements would look very different for a company partnership compared to those for a new branch, for example.

You’ll need to understand some basic requirements, including the minimal share capital needed for operation. You might also need an official trading name, and you should appoint the best suited roles and responsibilities to your managers, directors, and company officers.

1. Prepare an exit strategy

Even if you’re confident about the venture, it’s always worth knowing how to navigate to the end. Sometimes global assets stay relevant, but it’s possible that it may become unprofitable or simply wind down naturally in future.

Before you open overseas, take some time to understand what measures and statutory obligations will follow the decision to cut ties. Think about how much time and capital you’ll need to close the office or company, along with the consequences and impact on your home business.

Even if you’re confident in this long-term strategy, you should always stay one step ahead and prepare for the unexpected.

Ready to start the process now? While entry into a foreign market can feel daunting and complicated, effective organisation now will pay dividends. Whether you work with professionals or go it alone, in-depth planning and research will be worth it.