Your business has done well as a local brand, and now you are thinking of making the company a global one. Congratulations on taking the big, bold step to expand your business. Cheers! Since you already have this idea, you must know that it is not child’s play to go international as a business.
Source
We want you to embrace the possibilities, opportunities, and challenges that come with going international, which is why we have put together this simple and detailed article. Are you ready? If you are, below you will find the seven significant challenges you might face:
-
Table of Contents
Consider The International Company Structure
To successfully move your business globally, you must consider building a team and structure that will be meant for taking your business international. This is no small feat as you have to put many things in place, such as the team’s location. Will it also be a remote company or have a central headquarters?
Once you have identified that with your board of advisors, the next thing is to figure out what talent you need on the team and how large or small the team should be. If it would be a remote team, you have to consider the difference in time zones.
Source
Also, how diverse should your teams be? These are points of concern for a business owner who wants to go international. Let’s look at Coca-Cola, one of the most renowned brands in the world that implement the global company structure well. The company has one president that oversees other presidents that oversee smaller teams in different countries or regions. You may want to implement something similar to your business, but you must ensure it works for your business idea.
-
Get Your Moving Cost And Global Pricing Strategy Right
If you are moving physically, then it is perfect that you get free international moving quotes. However, whether you are a physical business or not, you have to consider some of the following factors to decide your price globally, mainly if you sell physical products:
- Cost of production, shipping fee, labor charges, and marketing cost.
- You should know how much your competitors charge to gain a benchmark price. However, you should still price the product in a way that works in your favor to make a profit.
- Whether your brand is a luxury one or not will also affect pricing.
- You need to consider whether you keep prices unified or different depending on the country’s needs.
Now that you know what you need to consider in your pricing strategy. Some factors to consider when adopting working systems include:
- Universal payment methods
- Risk of unpredictable currency rates
-
Foreign Laws And Regulations
Now your next job might be to know about the. Another challenge here is if you arrogantly or unknowingly ignore some of the rules, you might lose a considerable amount of money. Hence you must hire a team of business lawyers, probably in different countries or regions, who know the rules by heart and can help your brand avoid lawsuits.
The need to understand tax implications and trading laws must be fulfilled. Confirming whether your product is legal to sell in some jurisdictions will help you avoid many problems.
-
International Accounting
Another challenge you might face would be the different accounting systems in different countries. The accounting function of an international/multinational company may become difficult due to the other tax systems, rates, and compliance requirements.
An international accountant’s specialty is using accounting standards that are as relevant as they are when balancing the books of an overseas company. Building an accounting strategy allows you to maximize revenue and handle multiple later actions to prevent you from paying double taxes unnecessarily.
Source
-
Selecting A Global Shipment Methods
Online marketing and shopping have brought about new business opportunities for business owners. However, you may struggle with choosing the correct shipment method. Factors like the number of goods you are shipping matter, the distance the cost of your product, shipment service, and transport are all topics here.
Your shipping method will eventually influence your revenue, so you have to select wisely. You could find wholesalers to sell to in other countries to minimize cost, but you should also consider things like custom fees and storage costs if you can’t find wholesalers.
-
Difference In Cultures And Barriers In Language
One of the non-negotiables for running a successful business is at stake when you decide to go international, and that is effective communication. Communication skill is needed when communicating for business purposes within your locality, and as much would be required outside. What do you do to win this challenge?
The truth is you might have to be creative with your strategy in dealing with this, and there is no one solution. First, you have to be prepared before you storm the market, but how? You have to research the city or country you are entering next.
Source
Read about their values and communication style, so you will know what the wrongs and rights are when communicating to your audience in such countries, especially with nonverbal communication. You should also learn about their culture and religious etiquette because many things can go wrong if you mess with their beliefs.
-
Supply Chain Complexity In Foreign Countries
In trying to reduce the cost of your product to an international audience, you might have to source raw materials overseas, which can be a very tricky process. The supply chain lengthens, and you might have to deal with unethical suppliers or workers.
Closing thoughts
There you have seven challenges you might face when starting your business. This is not to discourage you. As you can see, we also proffer some solutions to some of these challenges. Going international is a great idea, and always remember you are not alone, especially in the internet age. Join communities and network with business experts, and you will have made so much progress in no time. A little research can a long way to get you tons of opportunities. With the right mindset, you are sure to win your way.