If you’re considering the global expansion of your services or starting a new company, you may need to change how you do business. There is no cookie-cutter approach to international business success, and your timeline may not be realistic for the country you are trying to expand into. In addition, misguided conceptions about workflow processes and a failure to do proper consumer research can cause your venture to grind to a halt.
In this article, we’ll dispel several misconceptions about starting a company abroad.
A common misconception about starting a company abroad is that you must first have your “home” market secured. Learning from other markets and competitors can bring fresh perspectives to your strategy and help you define the best tactics to move forward. It’s also an excellent chance to connect with new partners and customers to discover strategies that work for the market you’re expanding into.
Some companies underestimate a country’s culture, peculiarities, and the impact of local brands. These local brands may be small companies, but they are powerful within that particular country. Cultural aspects like how people do business and language barriers are also something to consider. When you enter a new market, be humble, listen, and avoid having a “know-it-all” attitude.
Another big misconception is using a global price list. They may make sense when using cost-plus pricing, but value-based pricing professionals realize that different countries have different willingnesses to pay. It’s worth shifting to regional or country-based price lists to increase profitability.
It’s always important to have in-country representation. This is because there are major differences in how people do business, communicate, and sell. If you are not planning to move to the country yourself, you should have people willing to advise you on business practices, especially dos and dont’s.
While some companies may believe that success is built on products, this couldn’t be farther from the truth. Successful companies are built on great employees who believe in your mission and your services.
One of the most common misconceptions when starting a company abroad is that you don’t need to understand the culture. Failure to understand, appreciate, and respect differences can cause businesses to fail in particular markets. You should take the time to understand the society and culture where you are choosing to start your business abroad. This will help ensure that you are successful and that you know how the culture operates.
One of the hardest things that you may encounter when establishing a business abroad is unlearning everything from where you grew up. In countries like the United States, we are used to instant gratification and things selling quickly. When you operate in a foreign entity, the speed of sales is often slower as people take their time making decisions.
Whether you’re a US-based entrepreneur looking to launch a new venture in a foreign country or a business owner looking to commence operations in the US, we are here to help. Partner with Accountants Without Borders today and let us help get your venture off to the right start. Simply email us at email@example.com or reach us through our contact form for a quick consultation.