What Parts of Your Business Should You Evaluate Before Expanding Overseas?

By Lisa 0

After becoming successful, many companies to expand their business operations globally. In the US, most entrepreneurs fail within the first five years, so if your business is still standing—congratulations!  As a result, you might think because your business is successful here in America that you can easily spread your business out to the rest of the world. However, expanding into other countries just doesn’t happen overnight, and having success in America doesn’t always translate into successful foreign operations. There’s much to be examined in yours business before you should make the big jump. Here are a few things you can evaluate before expanding your business overseas.

Your Product

Don’t assume that because your product sells in America that it will universally sell everywhere. Do your research beforehand. Just about every global company tailors their products to different markets. For example, Samsung has what’s called “Made For India” which manufactures and sells products to suit average lifestyles in India. You have to give customers what they want. Read up on the culture, laws and regulations of the country you plan to expand into. From there, tailor your product and your marketing to the specifications needed to succeed in that country.

Your Leadership Team

Believe it or not, many businesses have business teams that aren’t very productive. While this doesn’t seem to stifle their success, having a strong leadership team can be the driving force to continued success if utilized properly.

Any well-functioning leadership team should be able to set the path going forward. While each team member has different functions they oversee, they should be able to come together and overcome any problems within the company. If they have trouble with these tasks, consider team coaching to develop your leadership team’s skills. Evaluate your leadership team on how they accomplish these roles and make changes if needed. Evaluating and investing in your leadership team is important, as the leaders’ decisions affect the rest of the company.

Your Employees

Don’t forget about your employees. Your employees are likely the reason as to why you’re in the position to expand your business in the first place. Employees will need to be notified about the international expansion as well as trained on any new tasks they will need to do in the future.

These are just a few of many things you’ll need to look at before going through with your overseas expansion. Again, this doesn’t happen overnight. Expanding your business overseas can be a successful venture if planned properly. Take the time to carefully examine the current state of your business and make needed adjustments before making the big jump.

 

Here’s another article you might like: Outsourcing, Offshore And Overseas: What Do I Need To Know?

Outsourcing, Offshore and Overseas: What Do I Need to Know?

By Lisa 0

Many successful entrepreneurs are faced with the eventual decision of taking their business global. Outsourcing and offshoring are two popular options for businesses to take their operations overseas. If you’re not familiar with the two terms, outsourcing involves moving some or all business operations to a third party whereas offshoring involves physically doing business in a different country.

Why People Do It

Although there are both benefits and risks to taking your business overseas, the benefits alone are enough for many businesses to go abroad. Businesses outsource their operations for several reasons but the most popular reason is to save money. This reason alone is why many companies with extensive manufacturing processes go offshore to foreign countries where manufacturing costs are cheaper.

While saving money is the main driving force for most businesses to hire outside the US, there are many other reasons businesses start operations overseas. Bilingual customer service, increased production, and establishing a foreign presence are just some of the many popular reasons why companies set their sights overseas. For example, some businesses find that offshore call centers are more affordable than their onshore counterparts. As a result, many businesses outsource call centers in foreign countries.

Why Some Avoid It

Problems can arise with outsourcing and offshoring operations to other countries. Even with modern technology, foreign workers are harder to manage, and there is the possibility that language and cultural barriers or even accents will frustrate customers. As a result, the quality can decrease, miscommunication errors arise, efficiency may drop, security risks to intellectual property may increase, and an overall lack of focus among employees can occur. This can lead to financial problems and customer complaints if the problem is not fixed.

Also, many US consumers feel that American companies outsourcing work to foreign countries is morally wrong. They believe American companies should strictly operate on American soil and benefit the economy here. By moving operations out of the country you could face public backlash and lose loyal customers as a result.

Should You Expand Your Business Overseas?

Just because it’s easier than ever to do business overseas nowadays doesn’t always mean you should jump right in. Before deciding if you should take any of your business operations overseas, you should examine your business and point out its strengths and weaknesses. If you feel like your business can benefit by going overseas then consider the ups and downs of conducting business overseas. Consider your consumer base and their preferences. Determine whether it’ll make your team more efficient and grow your business.

Taking some or all of your business operations overseas can be helpful or detrimental to your business. Before making the big decision, make sure you look at the benefits and risks and determine whether outsourcing or offshoring is right for you.

Looking to outsource your business? Schedule a business consultation with us today to determine any legal road blocks.