Is Your Business Ready to Go Overseas?

If your business is ready for new markets, new horizons, and new challenges, an overseas expansion could be exactly what you need. However, doing business in new countries is a huge step and shouldn’t be taken lightly. To increase your chances for success, consider these major points before you commit to going global. 

Understand the demand

As you look at doing business in an overseas market, ask yourself whether there is a demand for your products and services there — or at least the potential for it. An article for Score.org recommends looking into target markets and other key factors before you expand into another country. If you have existing business partnerships or customers overseas, tapping into these connections could also be a good way to measure demand. You’ll also want to research the competitors your company will be facing and determine whether you can profitably break into the market.

Look at your resources and capabilities

Before taking on an international expansion, it’s important to confirm that your business possesses the resources to do so. As Score.org notes, make sure that what you already have is stable and healthy before you add to it — that way you’ll be operating from a position of strength when you expand. And naturally, you’ll want to do extensive research on whether your business can afford to take on the new costs of overseas expansion, from shipping and tariffs to construction and staffing. It’s also important to take your business’s capabilities into account. Are you equipped to manage new operations, staff offices or production facilities, ramp up production, maintain an effective online presence, and provide customer service for your expansion markets? If so, that’s a good sign that your business can handle global growth.

Expect challenges

Taking your business international means you’ll need to be aware of, and overcome, a wide variety of challenges. In an article for Business News Daily, staff writer Chad Brooks notes several of these. First, understanding and accounting for language and cultural differences are key, especially if your new target market is a non-English-speaking country. Second, you’ll need to learn about your new market’s licensing requirements, business regulations, tax laws, and legal system — along with U.S. laws and regulations related to overseas commerce. Third, it’s important to understand business customs and expectations in the market you’re targeting. Don’t assume that what you’re doing in the U.S. will translate — instead, you’ll need to adapt your branding, packaging, instructions, marketing, and other factors to match what local customers are accustomed to.

Find resources

As you lay plans for a possible international expansion, make sure you’re taking advantage of all the resources that are available to help you research and break into overseas markets. According to Score.org, the Small Business Administration’s Office of International Trade is an excellent source of assistance for small businesses looking to go global. You can also get help from the SBA’s numerous U.S. Export Assistance Centers across the country.

Once you’ve researched demand for what your business offers, assessed the financial viability of your expansion, investigated challenges, and taken advantage of all available resources, you’ll be ready to make an informed call on whether your company is ready for an international move.