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With highly dynamic markets, it becomes a crucial move to explore new opportunities in foreign territories, especially if you want to boost your business’ competitiveness. In fact, there are some advantages that your company can only get by going international.
Advantages of International Expansion
- Increase the percentage of leads and customers that your company could reach out there.
- Maximize your opportunities to obtain higher sales and revenue.
- Strengthen your brand position in foreign markets.
- Diversify your assets.
- Hire the most qualified and skilled candidates that could be a valuable source of innovation and unique skills.
In order to successfully expand your business globally, here are five steps you should take in mind to achieve it.
Analyze your readiness
Before going international, you must conduct an in-depth analysis of your company to determine its readiness to effectively respond to new demands that could lie ahead; for example, do you have the sufficient financial resources to start and sustain your international expansion? Also, you must consider both weaknesses and strengths to overcome any possible scenario.
Research the new market
Market research will let you know if you have a real opportunity to sell your services or products in your potential market. By analyzing all the possibilities available, you should properly comprehend the market you are entering, from knowing who your competitors are to considering potential distribution channels.
Understand your target audience
As international consumers have cultural and social differences from your local clients, you must take a closer look at their unique profiles in order to adapt your products or services to suit their desires and needs. This includes acknowledging language barriers, costumes, traditions, values, behaviors, beliefs, preferences, etc.
Consider legal requirements
Countries have a range of specific legal requirements that you must comply in order to operate your business overseas. So, if you want to avoid any misunderstandings, be aware of every single law and regulation, such as employment laws, taxes, pricing, operative restrictions, visa application, etc.
Manage your international team
As companies must hire new talent to manage and lead the business abroad, it’s crucial to have a well-established and professional HR team; capable to handle and comply with labor laws, taxes, insurance plans, and other employment practices. And nowadays, working with a PEO is a great solution for international HR management.
But, what is PEO and how does it help to expand business globally?
Professional Employer Organizations, known as PEO, uses the model of co-employment to partner with businesses that venture into international markets. Through International PEO Services, companies can save time and resources by leaving all the payroll, HR, and workers’ benefits process to a PEO provider.
When a company wants to start operations in foreign territories, PEO services leave behind the paperwork and common issues involved with taxes and compliance purposes. According to NAPEO’s research, businesses partnering with PEO are 50% less likely to stop operating permanently.
How does SERVIAP’s International PEO Services work?
- Extends the offer and provides the labor contract.
- Provides an onboarding process to new employees and enrolls them in an HR software called Nyrhcloud®, which integrates workers’ essential information.
- Assists with medical and life insurance, visa sponsorship, car and office leasing, work tools, etc.
- Manages payroll.
In this case, any business looking for international expansion can benefit from a PEO strategy, leaving behind all the risks that come from hiring talent overseas.
Definitely, international expansion should be understood as a way to strengthen a company’s position in a competitive market.