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Monday, May 13, 2013

5 Tips: Tackle Global Expansion Like a Boss

5 Tips: Tackle Global Expansion Like a Boss

Globalisation and international trade in the past decades have brought about an abundance of opportunities for businesses. Greater cultural diversity and market competitiveness accompany the increased openness of many major economies worldwide. For many businesses, expanding globally is an important means of increasing market share and profit while also establishing international brand recognition.
Venturing into foreign markets is potentially lucrative but requires planning and forward thinking - below are five tips that offer a guideline for your business's international expansion:
Tip 1: Undertake sufficient market research and analysis
Rigorous market research and analysis forms the core of all business ventures. A tedious and lengthy process, sound market research often pays off because it provides valuable information on the profitability and feasibility of your product or service in the target market, other competitors and the demographics of your target consumer. The results of your market research and analysis often offer insight into how your business can tailor your products/services or marketing strategies to your target market.
For example, fast food chain McDonald's has opened thousands of stores in more than 120 countries since its conception in the 1950s. The menu offered varies in different countries, according to local taste preferences and prevailing religious beliefs. For instance, its food offerings in India include more vegetarian and spicy options and excludes beef, in line with the local palate and Hinduism, the religion dominant in India.
Tip 2: Familiarise yourself with local licensing laws and other legislations
Different countries are governed by varying laws and legislations. Comprehensive research into these legislations regulating foreign business ventures is important to ensure that your business complies with local laws.
Many countries such as Australia, Canada and Hong Kong impose minimum wage laws and others have varying minimum wages negotiated between unions and employers. The amount of corporate tax that your business has to pay potentially also varies between countries. Some countries, such as Switzerland and Singapore are considered tax havens by global businesses and investors. The amount of tax levied is often an important consideration.
Tip 3: Be aware of possible bureaucratic red tape
There are often different administrative processes and challenges involved in the course of planning and preparing for your business's global expansion. Applying for a business license is generally a lengthy process that requires many legal documents and information to be submitted, such as the type of business you have.
In addition, there may be export and custom restrictions imposed on certain products and your business may have to secure approval and legal documents in order for them to enter foreign markets. Depending on the processing time, obtaining approval may take a significant amount of time. To familiarise yourself with doing business in a foreign country, it is wise to get reputable local advice.
Tip 4: Start with one market at the outset and focus on a tailored limited product range
Expanding globally is a costly but potentially rewarding venture. According to Economy Watch, it is wise for businesses to focus on only one or a small number of markets at the start. As American business magnate Bill Gates said, "My success, part of it certainly, is that I have focused in on a few things".
Focusing your resources on one market initially also means that your business is able to carry out thorough research, test out these new markets and tailor accordingly to ensure the success of your business's global expansion. Tailoring a limited product range with competitive advantage in your target market greatly increases the probability of success.
Tip 5: Use an effective cross-border payment strategy
Sending and receiving cross-border payments often entail challenges. Time zone and currency differences impede the process. When planning foreign business ventures, it helps to decide the primary method that you are going to send and receive funds internationally with.
Some factors for consideration include the processing time needed for your funds to clear, especially if you are sending and collecting payments via wire transfers and intermediary banks are involved. According to a report by Glenbrook Partners, the time taken for funds to clear was cited as a top concern when it comes to cross-border payments. Lengthy delays and unexpected reasons for cancelled wires can throw a spanner in the works. Exploring other cross-border payment options is valuable to helping you find one that meets your business's needs.
Does your business need an effective cross-border payment strategy? Visit http://www.technocash.com for more information on moving money globally efficiently.
Article Source: http://EzineArticles.com/?expert=Wei_Shi_Toh

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