As a business owner, it’s common to want to expand your services nationally or even globally if you have found success. Many businesses who set out to operate globally set out in failure due to poor research, not understanding the market they are operating in and being too sure of themselves.
If you want to expand your business globally the right way, then it’s important to make sure that you look into every aspect of the legalities, the culture and the socio-economics of a country before you begin your business there. Here are some things to consider when you are looking to start a business in a new country.
Research Business Laws
Business laws and practices differ in every country. Every country across the globe has a singular set of laws and regulations, taxations and restrictions. Before you even begin to do consumer research, marketing set up and anything in between, you will need to read up on all of the different business laws. It’s always a good idea to work closely with a lawyer to understand if your business is fully compliant with the business laws.
In some countries, it can take a matter of days to set up a business, however in other countries the legal process of getting all of the licensing can take months. If you begin the marketing and set up of your business and face delays, it can mean a financial loss before you have even started.
Develop an understanding of culture
Each country has its own culture and way of seeing the world. Individuals in some countries may be very conservative and have particular values and views, whereas others will be much more liberal and open-minded. The type of business that you set up in a country will determine how successful you will be.
One of the biggest mistakes a business owner can make, is refusing to ignore the cultural differences between their home and the new country they would like to operate in. For example, something that works in the UK, may not be wanted or needed by individuals who live in China. Therefore, it’s important to do some market research around your product or service, to see if there is a positive response.
It’s important to understand whether the cultural differences or language barriers will be a problem. Think about the interactions you will likely face within your industry and be sure to take multiple trips to the area before you make a decision.
Consider the socio-economics of the country
The political climate of a country can determine how successful your business expansion will be. Take a look at the political circumstances as this will help you to assess how stable the industry is. It’s important to make sure that you get a better understanding of the overall socio-economic situation before you make the decision to move to a new country.
In addition to this, it’s also important to make sure that you understand the immigration laws to prevent any setbacks when you look to relocate as a business owner. Be sure to consult with an immigration lawyer, to ensure that you are not stopped by immigration control when you land. For example, if you’re looking to live and work in the UK, you must apply for a Tier 2 Visa if you are a non EEA-national.