Monday, 26 Oct 2020

Biggest challenges of international business

The possibilities offered by global opportunities are obviously attractive as you can make your product available to a whole country of new customers.The internet has opened up the global market in a way previously only dreamed of. Now, you can take your business charging across international boundaries, in theory, without leaving your desk using just a good website and a reliable courier. In reality,there are factors you need to consider before you leap.

Choose your target market with care

Decide where tobegin your internationalexpansion: different countries may offer more incentives than others,so market research is crucial. Look closely at the pros and cons of the country, especially any taxes, levies or legislation that may interfere with your plans. Forbes’ list of the top countries in the world for business opportunities is a good place to start.Will cultural differences jeopardize the success of your product in that countryand will your product cope with the physical distance of the country from yours?

Next there are practical factors to consider. Research the financial and logistical costs of expansion.In terms of materials, identifywhich existingassetsyou can use, and anyyou will need to obtain, such as premises in your new country.Do your prices factor in the costs of currency exchange,tariffs or export fees?With these additions, how do your prices compare with your competitors?Consider personnel costs: evaluate the skills of your employees.Decide if they will cope with the increased demands of international business. Are your staff prepared to travelto the new premises and are anyfluent in the new country’slanguage, or will you use a translator service? Will you hire local staff?

Work with a local business

Check regulators for yoursector. Is your sector one where different administrative agencies enforce regulations and issue licenses? If so, a joint venture with a resident business partner is a particularly useful tool to enter a new market or a new country. You source a receptive host business in the new field/country and work together. This is especially helpful in a new country with different regulation processes. Your joint venture partner will be an established business, with knowledge of the rules and regulationsthat govern products in your industry.

Healthcare isone example of a sector where different government agencies control product regulation in different countries, such as the Medicines and Healthcare Products Regulatory Agency (MHRA) part of the UK Department of Health, and the National Medical Products Administration (NMPA),which is directly under the State Council of the People’s Republic of China.Perhaps you want to break into China’s rapidly growing healthcare industry, with its potential for innovation and profit, but find facing the NMPA regulations on your own daunting. A simple solution is to work with a company specializing in Chinese drug registration and use their expertise to decide if you should launch your own product or work with a partner on a joint venture with a Chinese company.

Prepare for success

You know there will bechallenges as an international business. However,the right preparation now will allow you to overcome these. Explore the available advice, such as this piece on enterprise progress, and with the right planning, it will definitely be worthwhile. With the right preparation, your company will boom in the global market.