How to Move a Business Abroad

Going global is a huge step for companies, especially for small businesses that run on restricted funding. That does not mean, however, that they should avoid this maneuver. It can turn out quite profitable, just like it has with businesses like Facility Cleaning International, Apple, Google, Amazon, and Hyundai. If entrepreneurs are still on the fence about which direction to go, it would be wise for them to consider these factors.

Facility Cleaning International on Expanding Abroad

-       Entrepreneurs should make sure that their business model and purpose match their approach. FCI states that business owners should ask themselves what they hope to accomplish by expanding. There can be multiple reasons for moving abroad such as acquiring new customers, lowering the costs of supply chain management, or improving operations. The answers to these questions will influence virtually every aspect of the arrangement, from office location to staffing.

-       It is crucial to do the necessary research before going international. Many aspects of expanding abroad will start to surface as entrepreneurs do their homework. Networking is vital during expansion, and business owners are encouraged to reach out to international partners to ease the transition.

-       Entrepreneurs have to keep researching until they know everything about the region they are moving to and how it can work for or against their businesses. Company-owners stress the importance of conducting thorough research in order to save money and to make a profit. Companies such as Facility Cleaning International, Nokia, Siemans, and Honeywell all followed a strict regimen of performing market research before they went global. They understood how critical it was to assess foreign markets before taking their business into new territories.

-       One of the most overlooked aspects of going abroad is maintaining a high level of awareness of an international brand. It is important to keep a central corporate identity and brand across all regions, but there has to be minor changes to suit different environments. Even the choice of colors in the brand can make a difference depending on the customs of the area. A color that means dominance and leadership in one company can mean the complete opposite in another.

“Finding out when to take your company global is only half the battle,” comments a representative from Facility Cleaning International. “The actual process itself is going to take the most time and effort. A lot of companies want to avoid this hassle and resolve to stay domestic. But there are so many advantages to expanding worldwide that it would be crazy not to go abroad.”

Some of the key benefits of going international with business expansion are as follows:

-       Companies can extend the sales life of their existing products and services by finding new demographics to target and new markets to sell them in. An example of this would be Nintendo, which expanded beyond Japan’s borders and has since become one of the most profitable multinational companies in the world.

-       Entrepreneurs can reduce their dependency on domestic markets by catering to outside sources. As previously mentioned, Nintendo has grown to encompass a larger, global market. A majority of its revenue comes from its international sales rather than from its domestic, Japanese market.

-       If a business is prone to destabilizing fluctuations in the markets due to seasonal changes or demand cycles, then the owners can even out their sales by tapping markets with different fluctuations thanks to overseas expansion.

-       Entering the global marketplace puts businesses at an advantage because they will learn how to compete against foreign companies and can even match their abilities in their own territories.

After the questions have been addressed and the final decision has been made about going abroad, a business is ready to take part in a six-step program. Companies should adhere to the following steps for their international expanding initiative.

-       Entrepreneurs should prepare an international business plan that evaluates their needs and sets their goals. It is essential to assess the company’s readiness and commitment to grow internationally before any other steps are taken.

-       The business should conduct the appropriate foreign market research and identify international markets. The Department of Commerce is one of the best resources for information on foreign markets regarding United States goods and services.

-       The next step is to evaluate and select efficient methods for distributing products abroad. Entrepreneurs can choose from a variety of means of distributing their product such as opening foreign subsidiaries or working with third-party distributors.

-       Every entrepreneur should know how to set prices, negotiate deals, and navigate the legal morass of exporting. Most of the challenges for business owners who are going abroad revolve around legal, social, cultural, and economic differences.

-       It is wise to tap government and private sources for financing. Entrepreneurs will want to make sure that they are getting paid during their international expansion. Financing is almost always going to be an issue, but government interest is making it easier for countries to export.

-       The final step is to move goods and services to the international market and ensure that they are packaged or labeled according to the selling market’s regulations. Globalization of transportation systems will benefit this venture, but there are still varying regulations in almost every individual region.

Many companies have benefited from taking their efforts to the global marketplace. Just like starting a domestic business, this endeavor comes with a large amount of risk. According to Facility Cleaning International, a janitorial management services company, the rewards that come with this venture are definitely worth any risk.

Source: http://dailyglobe.com