Expanding a business can be a tricky thing. While there are substantial gains to be found, it’s vital to have a plan in place if you’re to avoid structural issues that will hinder your progress in the long run.
If you’re expanding your operation across national boundaries, then things get even more complicated – but the potential rewards are even greater, especially if you’re heading into territory that your rivals have yet to fully explore.
Going international means supercharging your reach, and pushing your brand awareness to a new level. You’ll be afforded new opportunities, but you’ll also be exposed to new risks. As you form your plan for going international, you’ll want to account for some of these risks and set out how you intend to deal with them.
Culture
Different parts of the world come with different cultural sensitivities. What is acceptable in one area might be frowned upon in another. You don’t want to unwittingly offend your potential customers, suppliers, or regulators – and so it’s worth making yourself aware of the potential landmines.
Fortunately, most societies will forgive a few missteps, provided that you’ve made an effort to reach out. Establish personal relationships with local people, with the expertise necessary to guide your expansion. Learn a bit of the language yourself, too, so that you can introduce yourself personally to the locals.
Payments and hidden fees
The financial arrangements and regulations that prevail in the new territory might be different from what you’re used to. This goes especially if you’re going to be trading in different currencies, and taking and dispensing payments across boundaries.
It’s often a good idea to consult with an impartial expert in these matters since small mistakes can sometimes lead to expensive headaches in the long term.
Corporate tax rates
The rate of corporation tax is one of the factors that you’ll need to consider as you set up your operation. Some countries, like Ireland, come with famously competitive rates of corporation tax. Others, like Germany, impose a heavier burden on business. As well as the headline rate of corporation tax, you’ll want to also think about how complex and navigable the system is, and how likely it is to change over time. After all, if you’re planning to stay for decades, then your plans might be scuppered by an incoming government with a different tax philosophy.
If you’d like to optimise your tax affairs in your new country, again, the input of an outside consultant can be invaluable. It might be that there are nuances to the tax system of which you are not aware and that a little bit of judicious accounting can make your new venture much more profitable. In some cases, these matters can make the difference between a viable expansion and an unviable one.
