3 Things to Consider When Expanding into Foreign Markets

Are you thinking of expanding into foreign markets?

Are you expanding into foreign markets? Expanding your business into international markets can be quite exciting and challenging at the same time. It offers an opportunity for more market share, a larger customer base and more prestige. It also gives you a buffer for fluctuations in the home market sales cycle.

On the other hand, going into new markets is quite a costly venture regardless of how big your organization is. You will need new staff, usually hiring locals. While at it, you will have to deal with the often-confusing regulations and requirements for starting a business in the target territory.

 

Getting started

Now, throw in the fact that, you’d be going into unfamiliar terrain with different cultural expectations than what you are used to. Perhaps even devastating language barriers. Expanding internationally might just lose its appeal.

But here’s where working with a professional translation agency with local roots in the target country comes in handy. Not only will the agency translate all your marketing materials and other content into the target language, they can also act as advisers who help you execute on your plan effectively.

That said, here are a couple of things to consider before deciding to take your business overseas.

Expanding into foreign markets – sales and communications

Whether you are going to have boots on ground in the new market or rely on your website to promote your business, one thing is certain: effective communication is essential to conversions.

And when you consider that 72 percent of internet users visit websites in their local language, plus the data that consumers say they prefer to shop on websites in their native language, the role of effective communication becomes even more crucial to your success in the new market.

Hiring a translation agency with experience in the target language is a wise business decision that not only positions your brand favorably in your consumers’ minds but also can actually drive conversion.

 

How do you navigate the legal and regulatory requirements?

Before you can conduct business in a foreign market, you will need to met certain legal and regulatory requirements. This means you’ll be dealing with the local authorities to get the necessary approvals required for business.

Also, you will need to be aware of taxes and import/export barriers. Find out how easy it is to repatriate funds from the country. You don’t want huge tax bill surprises, do you? Or experience delays when getting your money out of the country.

Work with professional legal experts experienced in setting up businesses for foreign nationals. This will help you avoid some of these curveballs down the line.

 

Understand the cultural uniqueness of the country

A major part of international business is understanding and dealing with the cultural differences. There’s also the language barrier issue to tackle too. You can usually solve this by having a partner who understands the local cultural nuances.

Also, pay attention to the business etiquette of the country. For instance, in Asian markets you cannot be as direct and straightforward as is customary in western world.