You’ve decided it’s time to expand your business overseas. Growing your business beyond your domestic market is a big achievement. Too often, companies hastily jump in with both feet. Unfortunately, that doesn’t always end well. International expansion is not a project you think of one day, start the next, and finish within a month.
One of the most important aspects of expanding your business to another country is establishing a local presence. Once you have successfully set up your first overseas location, you are on your way toward global expansion.
In partnership with Alliance Virtual Offices, I’m sharing my ideas for building a local presence for overseas business expansion. Consider the following for establishing a local presence:
Select the best location.
To successfully expand your business overseas, you need to select the best location. It’s a smart strategy to conduct foreign market research in multiple locations. It provides your business an opportunity to identify the ideal place for expansion.
Evaluate the local competitive landscape. Find out if a location offers incentives for new businesses, such as tax breaks. Research the methods of distributing your products and providing your services overseas. Select an area that will generate the most revenue with the smallest investment.
It’s critical to make your company visible to the community and build relationships with local customers. So, make sure to select a location that is visible to your target customers.
Understand legal and regulatory requirements.
There are many issues to consider when taking a business overseas. However, legal issues are the biggest threat to the overseas expansion process. Every country has its own laws and regulations for starting and operating a business. Failure to comply with local employment and tax laws can damage your business.
A critical component of taking a business overseas is choosing the proper business structure for your company. Companies looking to establish an overseas legal entity can use a virtual office address to save money. What’s more, using a virtual address for your overseas location can provide you with the flexibility you need to run your business.
Understand the various entity options available in your destination country. These can include:
- Initial investment levels
- Local presence requirements
- Tax implications
- Local employment levels
- Governance structures
Find strategic partners.
If you want to accelerate building a local presence, find strategic partners. Before launching your product or service in a new region, conduct extensive research into the local market to identify potential strategic partners.
Strategic partners can provide local insights and speed up entry into new markets. As a result, regional alliances can increase your sales while lowering your new customer acquisition costs.
You might even be able to leverage these types of partnerships to launch into even more countries.
Expanding a business into a lucrative overseas market requires building a local presence. To make your overseas expansion a success, you need to pick the ideal location, understand the local laws and regulations, and work with local strategic partners.