Nearly 50% of small businesses in the United States fail after their first 5 years of opening.
Growing pains and expansion are often to blame for the failures. Understanding more about these hurdles can help you get past the 5-year milestone and prepare to go globally.
If you want to see your company succeed in the long run, there are a few errors to avoid. Keep reading to learn about the biggest global expansion mistakes.
1. Lack of Planning
One of the most expensive global expansion mistakes to avoid is a lack of planning.
If you don’t know if your company can handle an expansion, you should take a step back. Before you start marketing businesses internationally, you need the numbers to back it up. Collecting data and researching your global market will help you prepare for your expansion.
Work with your team and establish an organizational structure that can help you meet your global goals. It’s also helpful to be proactive and find solutions for marketing in new markets.
2. Overlooking Financial Changes
Payroll and benefits are an entirely new challenge when you have to compare other countries’ wages.
Partners can help you prepare for financial evolution, but you need to trust your accounting department for help. You don’t want to overlook these changes and leave employees unpaid or neglect to take taxes out.
Many people recommend working with a global expansion team when it comes to handling payroll, procedures, and taxes. Reading more on global PEO services can help you decide if they’re right for you.
3. Ignorance of Other Cultures
While you’re creating global content, will you be researching your audience?
Although there are many comparisons across the globe when you look at each generation, their cultures play an important role. If you don’t learn about your audience and their culture, you may post offensive content or fail to connect with their needs.
Another reason to be aware of these cultures is that your products may not be allowed in their country. For example, if you are in the food industry and ship products, you shouldn’t send items containing toxic dyes and chemicals.
4. Hiring the Wrong People
If you want to invest in your company, you need to put your dreams in the hands of people you trust.
Hiring the wrong people for your jobs is more common than you realize once you start expanding overseas. Depending on which time zone you will follow, you need someone with the right knowledge and availability.
Take the time to research the best hiring sites for your industry. You can filter options for people that are willing to work remotely or move.
Global Expansion Mistakes Will Cost More than Money
It’s common for businesses to underestimate the planning and influence needed to go global.
Learning about global expansion mistakes can help you get ahead of the curve and make an imprint on your industry. If your team knows about growing pains and how to navigate cultural differences, you can create a successful company.
Be sure to check out our site for the latest industry content while working on your global expansion strategy!
