6 Myths About Expanding Your Business Globally

There was a time when going global was considered an apt step for only major players but things have changed now. Even small and mid-sized enterprises are keenly exploring opportunities overseas, all because of the changing technological and economic landscape. Even though thousands of businesses of diverse sizes and types reach out to international markets every year, some misconceptions about global expansion still prevail. If you are planning to extend your boundaries and go global with your business, here are some myths that you should not believe in.

Myth #1: Global expansion is always expensive

The most daunting fact about extending your business outreach and starting up in another country is that it is always expensive. There are costs like establishing an office, recruiting workforce and paying up for regulatory requirements that you may need to incur.

However, you can economize the process by partnering with an overseas business consultant in the targeted country. Not only can they help you with establishing the setup but also make it cost-effective for your business by steering you in the right direction.

Myth #2: It is time consuming as well

When you do plan to reach out to another country, you will realize that there are several steps involved in compliant expansion. A large number of businesses simply give up the idea because they think that the process would be too tedious and time consuming.

Here again, a pre-established business consulting agency can help you to expedite the process by handling the bureaucratic requirements and speeding the setup process. This is the biggest concern for businesses because they can be trapped for years while handling the legal and regulatory compliance issues.

Myth #3: A foreign market that speaks the same language is the best option

Entrepreneurs believe that the best plan for overseas expansion would be to reach out to a country that speaks the same language as they do. But this is a big misconception as language and culture are not the only parameters that determine the chances of success.

You need to consider factors such as consumer demographics, purchasing power and regulatory norms in the targeted country to check whether it has a potential as a market or not.

Myth #4: Global expansion is a major commitment

Another major myth about taking your business overseas is that it is too big a commitment. This mostly happens with small and mid-sized businesses that have financial constraints and want to avoid unnecessary risks. However, this should not be a reason to give up on the opportunity for booming growth that you may achieve by tapping the international market.
You can read here to know all about the facts and requirements for opening up a business subsidiary in another country. You will probably find it less difficult than you believe.

Myth #5: Largely populated markets have better potential

If you restrict you business only to countries with large population, it may be a mistake. Obviously, you would believe that largely populated markets have better business potential but this is not totally true. Segmentation is one of the critical aspects of local and international marketing strategy.

Rather than the population of a country, it is the potential consumer segment that matters more for a business. Therefore, your decision should be driven by extensive research and analysis of the market instead of the size alone. 

Myth #6: Success in local market means success in all markets

A myth that kills major players that succeed in their local market is that they become overconfident about making it big in other countries as well. Your core product may be in demand domestically but this does not guarantee that it will sell well internationally too.

The product may not be in demand in the targeted country or you may have to face tough competition from other local and international players in that market. Extensive research is the key before breaking into any market and so is partnering with a local business consultant.

Beyond these myths and challenges, navigating an array of regulations and laws can be extremely tough for businesses. Additionally, deciphering agreements and tax codes of a new country can be equally big obstacles for them. Therefore, it is best to seek in-country expertise for assisting you in making the journey smooth and seamless. These experts serve as local touch points to enable you in handling the most critical challenges from the start. Further, they can play a key role in propelling your business on the path to growth and success in a new overseas location.

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