Taking your business global can be an exciting time and can help you reach new levels of success.
While it is a positive and something many companies strive for, it is important to be aware of the potential risks that you face. There are a number of risks that need to be considered to ensure a smooth process. Keep reading to find out more.
Brand Awareness Challenges
Keep in mind that people might not know or trust your brand when you enter a new market. Therefore, it is important to utilise strong marketing and partnerships to build recognition from the ground up. With a clear strategy for raising brand awareness, you risk getting lost in a sea of local and global competitors.
Hidden Fees & Tax Traps
Different countries have different taxes, tariffs, and business regulations that can sneak up on you if you are not careful. If you do not do your due diligence, hidden fees could eat into your profits fast, as well as lead to legal issues that will make it hard to succeed. This is why it is wise to gain advice from reputable tax specialists who will be able to help with tax planning and ensure that you are compliant from day one in the new country.
Language & Culture Bumps
Language barriers, local mannerisms, and etiquette can make communication tricky when entering a new market. For example, your slogan that is witty and catchy at home might sound confusing or even offensive in another language. Therefore, it is vital that you take your time to understand cultural differences and adapt as needed – showing respect for local customs and culture can also help build trust with your new audience.
Customer Service Makes (Or Breaks) You
Customer service must be a top priority, no matter what country you are operating in. This can be your golden ticket to winning over customers and building a positive reputation in a new market, so you need to be responsive, respectful, and ready to adapt your approach based on local expectations (much like you must with mannerisms and etiquette). A great first impression can turn curious shoppers into lifelong fans, which is why it is a smart move to hire local customer service staff who will know how to connect and engage with local customers.
As exciting as expanding internationally can be, it is vital that you are aware of the risks involved. The information in this post should be useful for any business owner making plans to take their business overseas. The above are the main risks involved, so you need to develop strategies that will help you mitigate these risks so that you can hit the ground running and start attracting customers in the new market from the get-go.
