Developing your business towards different locations is an organic form of succession. To progress exponentially, international expansion is an attractive prospect. There are many characteristics to contemplate prior to setting grounds on international territories. It is important to be prepared in advance, construct a right strategy, and avoid vital mistakes from taking place.

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Tips for Preparation

Before expanding your business globally, it is important to have adequate preparation and below some factors for consideration :-

Take your Time – It might seem fascinating in the beginning, although there are a lot of elements involved. Take up necessary time to plan properly rather than jumping into it too soon.

Crucial Partners – Strategic partners play a huge role in an organisation’s expansion. Seek an accounting firm which emphasises in managing international accounts payable and receivable. As a franchisor, enlist a franchise attorney with ample knowledge in the new jurisdiction you are expanding to and seek professional advice for significant legal concerns.

Conduct Research – Look at the trend especially in areas where many people have shown interest in international expansion, begin your research into that jurisdiction. It may take up months to register your business in another country and the requirements may differ which naturally may end up taking more time to settle than anticipated.

Language – Communication is key and coping up with local dialects and languages can be challenging.  Ensure proper communication from the beginning to avoid this, may need to engage local staff/partner to assist if need be.

Potential Strategies for Expansion

Every overseas business expansion plan must take consideration of the following crucial characteristics :-

• An internal business audit, making sure internal parameters such as product offerings, service types, and entire brands are commercial. Internal audits are diversed and customised to the parent organisation. They can comprise of SWOT, gap, and various market segmentation analyses which aid organisations comprehend their strengths, development areas, and differentiating value propositions.
• A competitive analysis, examining your business offerings and operations against industry competition in the new market.
• A market analysis, researching the health and landscape of the new target market. Proper market analysis comprises of market size and growth potential, consumer bases, consumer attitudes, market channel research, market investment analysis, state of the economy, and related attributes.
• A marketing strategy, will comprise of brand positioning, marketing channels, product or service delivery, marketing KPIs, marketing programs, and costing assessments depending on the new market’s economic atmosphere.
• A localised infrastructure plan, detailing the need, desire, and processes to develop a compliant local and regional existence. Infrastructure plans comprise of hiring international employees and executives, seeking local vendors, establishing legal, regulator, and tax statuses, and a physical facility or base if required.
• A top-down budget, starting with six to twelve months of committed launch resources in sync with your comprehensive business plan. Increase that budget to account for at least three years of continual expansion support, with budget-based KPIs tracked every month.
• A timeline, with viable yet competitive, commitment dates to map the complete expansion around. Ensure that timeline syncs with existing business initiatives and objectives.

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Key Mistakes to Avoid

Whilst expanding, it is possible for business owners to make mistakes. Those errors may seem common. Avoid these mistakes to streamline your process in a more refined manner :-

1. International Expansion on Reliable Grounds

Prior to accessing the global marketplace, consider your intents. International expansion must not be accounted solely for financial gains. To evaluate your organisation’s dedication and willingness to going global, ask yourself the following questions :-

• Does your organisation have the integral and financial capability to sustain international development?
• Does your business have an organisational structure which is flexible enough to conform to new markets?
• Do you have a dedicated management team in position which is prepared to match global challenges?
• Do you have the relevant resources and members to concentrate on international expansion while remaining to sustain your present domestic consumer base?

2. Global Expansion Strategy in Position

Keep in mind that the plan for jurisdiction A, may not function in jurisdiction B. Various nations can have various markets, requirements, laws, etc. No one hat fits all, hence there is no standard strategy for market expansion. It is crucial to perform some fundamental research on the marketplace you seek to enter. Consider the demands and needs for your products and services. Have a thorough analysis of your competitors in advance.

3. Utilising the Ideal Marketing Talent

Recruit the ideal management to navigate your organisation towards success in new international markets. Comprehend that local professionals possess a clearer picture of the consumer needs and demands. It is also significant that you recruit local individuals that are aware about the involvements related to compliance with local laws and regulations.

Labuan for Global Expansion

Labuan is a significant offshore jurisdiction which offers an admirable business surroundings along with asset protection for foreigners. A very competitive and low tax structure offers abundant reasons for investors to operate their activities in Labuan as opposed to other tax-free jurisdictions. The company formation specialists, commonly known as a Trust Company in Labuan, provide reliable consultation to interested investors that are keen on understanding the tax structure for organisations in this jurisdiction and individuals that are seeking to set up an offshore company in Labuan. Connect with QX Trust team of consultants to understand how you can expand your business globally considering all pre-requisites. To book a complimentary session, connect with us today at CONTACT US or consultant@qx-trust.com.