The Biggest Mistakes To Avoid When Taking Your Business Overseas

In terms of potential growth, there are few strategies that offer as much potential gain as taking your business overseas. However, it’s also one of the highest risk strategies, as it can mean huge losses if it doesn’t go well. Often, these losses can be down to simple mistakes that we’re going to cover below.

Neglecting Market Research Before Making Your Mark

All too often, businesses assume that success in one country will mean success in the other. Or, they may assume that there are no competitors overseas because they don’t recognize local competition. It’s not even safe to assume that there is demand for your products and services, even without local competition. To that end, you must invest in market research to get a thorough understanding of the industry landscape as well as consumer sentiments.

Overlooking Local Laws And Regulations

If you want to make sure that you’re ready to expand overseas, then the first thing you need to do is see how compatible your current business setup is with the local business laws. Every country has its own regulations covering taxes, employment, intellectual property, and compliance standards. Assuming that what works at home applies overseas can lead to costly penalties or even force operations to shut down. Take the time to ensure that you have all the right permits, that you understand labor protections, and get the key legal expertise you need to help you make the move. 

Not Having Your Essential Infrastructure In Place

You can’t just land in another country and start doing business. You have to make sure that you register your business with the right authorities and have the right financial infrastructure in place. If you plan on operating in China, for instance, then you need to open a Chinese bank account, which may take some additional prep time than it would for a domestic bank. Without this foundation, even simple tasks like invoicing or payroll become barriers. You have to be ready to carry out transactions legally, to pay employees, and to work with local vendors, all of which typically require that your finances are in place. 

Failing To Localize Effectively

A lot of businesses fail to understand that customers in an overseas market demand more than just a translation alone. Aside from making sure that all of your marketing materials, website, and other brand touchpoints are perfectly understandable, you have to consider the cultural and other differences that can make your brand a bad fit for its market. Good localization is about understanding how your product fits in the lives of the consumers, so understanding cultural touchstones, faux pas to avoid, and how imagery might land in one region vs. the other can ensure that you’re truly speaking their language. 

Avoiding the mistakes mentioned above does not guarantee that your business will be a success. However, it can ensure that it has a fair chance to hit and thrive over there without getting tripped up by major costs before it even reaches the new customer base.