A lot of businesses will consider going global due to the huge benefits that can come with doing so. Absolutely, it is a worthy endeavor, but there is no doubt that it also comes with a lot of challenges. A plan is essential when it comes to taking your business global so that you can minimize the risk of encountering any of these problems as much as possible. What are these problems? The list below dives further into some of the common challenges that businesses that go global face.
The Physical Distance
Though thanks to technological advancements in communication it is incredibly easy to speak to people overseas; however, nothing ever quite lives up to what it is like to talk in-person. This can apply to both people in your personal life but also people in your business, specifically, your distribution partner. This is on top of the fact that there are costs attached to freight, logistics and shipping. Before you go, you will need to take the time to work out what the costs would be in doing business long distance in the new regions you are hoping to extend into.
The Language Barrier
When you go global, you will be working with people from different countries, which means that inevitably you are going to come across individuals who do not speak the same language as you. When it comes to business, clear communication is absolutely crucial and as such you should consider enlisting the services of an organization such as Smartling,which provides automated translation.
Unfamiliar Cultures
Culture shock is something that most people who move to another country will face. As such, it’s a good idea to getaccustomedwith the common behaviors of the people in the country that you are looking to expand into. Other things to take into account are how people interact with one another, both in a personal and professional setting. The cultural challenge is a difficult one to overcome, but it is also an important one for your business so you can assimilate with the people that you are hoping will become your customers.
Human Resources
When you are taking your business global, you also need to consider exactly how you are going to meet the manpower requirements that come with operating in the foreign country you will be moving to. In order to deal with the demands of your work, you may need to hire some new team members – these will require more investment, so be sure to consider the cost of new employees when you put your plan together. If you decide to send existing employees to the country you are expanding into, then you will need to consider whether or not you will require new employees to fulfill the roles they are leaving behind.
Choosing the Right Countries
Finally, there is nothing worse than beginning your expansion and realizing that you haven’t put enough research into the country that you are moving to. Expansion has to come with benefits for your business and if they are not there, then maybe consider a different country.
