Common challenges of expanding your business to global markets
The global demand for UK goods and services continues to steadily grow, reaching as much as £626bn as of October 2018. According to International Trade Secretary Dr Liam Fox MP, more British companies are looking forward to bring their businesses overseas in 2019. Dr Fox believes that international trade will remain one of the most important parts of the UK’s economic growth in the coming years. These numbers are encouraging for business owners looking to start expanding to global markets. Owners have the option to apply for short-term business loans or other types of business capital loans to add more funds for their global business operations. But aside from looking for more capital, here are several challenges you may encounter when planning to take your business to new markets abroad.
Processing the necessary paperwork
When expanding your business in a different country, you need to learn all its business regulations, tax codes, and packaging rules to comply with the local policies. It may take a while before you can submit all the important permits for your operation. Experts suggest knowing which local laws will affect the way you do your business. It would also help to know the standard banking laws and regulations. This is because local banks may have different processes when dealing with foreign accounts. Also, learning about the local credit card regulations in your chosen country may also help you lessen the hassle of paying for all the expenses that you incurred for your business.
Language and culture differences
Entering a foreign market can be challenging, especially if you do not speak the same language as the locals in your chosen country. While Google Translate and other language translation apps can make your life easier, these are not very reliable tools to help you convey your message accurately. To solve this problem, it would be better if you will hire at least one person who can speak both your language and the common language in your new market. As much as possible, that person must also be knowledgeable about the local customs and traditions of that country. This will help your business adapt to the norms of your new market.
Risks in getting your supplies on time
The possibility of delays in the supply chain may happen if you need to export all your items to your new market. The risk is higher if your goods from the UK will be shipped to Asia or other continents. This problem may have a huge effect on your global operations. This can be avoided if you know where to source local suppliers. This way, your operation does not need to be put on hold whenever a shipment remains in transit. Getting your supplies from local sources could also lessen your operational costs.
These challenges do not need to be a disadvantage if you plan to bring your business to new markets abroad. As long as you keep an open mind and learn to adjust to the demands of your new consumers, your company will be able to penetrate the global market. In addition, you may also learn a lot from your new market and bring it to your own country to further enhance your business.
