Growing your business is always an exciting time. Expanding it internationally, however, comes with many pitfalls that can leave even a successful company floundering. That’s why it’s so important to go into the expansion process with eyes wide open, and with the knowledge from this guide at your fingertips:
The Types of Expansion
There are several ways that you can expand your business.
Virtually
The easiest and possibly the first way that you’re going to want to expand your business is virtually. For example, if you are a US-based business that wants to expand into Europe, you might be considering opening an office in London. This is a huge expense with plenty of legal issues, but opening a virtual office is as simple as booking a monthly service.
You can book a virtual office in Mayfair and have a UK-based business address to which you can send your correspondence. You can also add on-call answering services so that you never miss a call or business opportunity just because of the time difference.
Physically
As you grow you can then start looking at physically opening a new office. To do this successfully you’re going to want to start by hiring a specialist UK lawyer who can walk you through the steps and make sure that all of the necessary paperwork is signed. For example, you’ll need to register your company with Companies House, open a UK bank account, and possibly get permits and licenses.
Partnerships
You can also partner with international brands to grow your reach internationally. For example, a US-based fashion brand can get their products in departments stores around the world through partnerships.
Partnerships can also be made with clients if you sell on a B2B basis. In this case you’d simply need to set up the digital and physical supply chain needed to get your products or services to your international clients.
How to Succeed When Expanding: Top Tips
There are several ways that you can falter when expanding with any of those options, so keep these tips in mind when growing your business internationally:
Hire Local Teams to Lead
To succeed with physically opening your business abroad, you’re also going to want to hire a local team.
Trust that they know how to bring your business into the new market best, rather than copy-paste your US approach in a different area.
Use Local Lawyers to Handle the Process
It’s easier than you think to start doing business abroad. The problem runs into when the law finds out that you’re operating in their area, and they want their piece. For example, if you do business in the UK selling digital only products you might think you’re good to go. You don’t have a physical presence in the UK, and are only selling files.
The problem is that you actually owe the government tax every time someone buys your digital products. This means you need to sign up for UK VAT, even if you don’t ever actually make enough to pay tax.
Keep a Tight Ship on All Your Records
The last thing you want is to run into an audit from another country.
You’ll need to bring on local lawyers, show proof in a format (and even language) that is accepted, and more. That’s why you need to improve your data collection standards and keep them in line with local rules and regulations.
