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Expanding internationally is a viable option for many companies who want to take their business to the next level. Whether you want to offer your products and services to people around the world or want to take advantage of the many benefits outsourcing provides, expanding internationally can be an exciting and fruitful proposition. At the same time, there are many challenges and risks associated with international expansion. Here are some tips you should keep in mind to ensure you can expand as quickly and efficiently as possible.
SERVIAP can help with your global expansion needs. Contact us today to learn how you can expand your business with PEO in South America and Latin America.
Research the Market
It’s important to hone in on exactly where you want to expand. You might think that one country would be ripe for expansion based on the potential market for sales there. But, is it a viable option for you?
Essential thing to consider as you look for the perfect expansion location include local business rules and regulations, tax implications, ease of doing business, and costs. All of these things play a key role in determining whether your business can succeed in that country.
It can be very difficult for business owners to do this research on their own. That’s why it’s a good idea to hire a firm experienced in international market research to help with this stage. The firm can help you determine which countries would be the best fit for your company and your brand, and/or which countries would be best for you to outsource work to.
Research the Infrastructure
U.S. companies are used to operating with modern infrastructure. Everything from power and water to transportation and IT infrastructure is in place in virtually every part of the country. That may not be the case in some international markets. While many countries have infrastructure that rivals that of the U.S.—or is even better—some other countries do not.
Things such as the supply chain could operate differently in another country than it does in the U.S. as well. How would that affect your company’s operations? What adjustments, if any, would you have to make to accommodate?
These are important questions to ask and find the answers to before you make the plunge to expand your company internationally.
Find a Good Partner
One way to make the international expansion process easier is to find a local partner who can help you during the transition. This could be a current colleague or another person who’s in your field. It could be a U.S.-based company that has expanded to the same country you are considering or a firm that has experience helping other companies like yours expand to the area.
Drawing on the experiences of others is a great way for business owners to learn the ropes. It’s also nice to have local support in the country to which you’re expanding. Your partner can help you navigate the various business rules and regulations as well as provide tips and strategies for how to set up, operate, and succeed.
Join as many local networking groups and business organizations as you can to help get you acclimated to life and business practices in the foreign country. The great news is that many of these groups hold virtual meet-and-greets today, which will make it easier to conduct your research and make connections without having to travel abroad.
Use the Government’s Help
Many foreign governments have departments or agencies set up to help companies expand to their country. This is a resource you should definitely tap into, if the country offers it.
These agencies help foreign business owners meet all the obligations they need to in order to open a branch of their company. They can also help set up meetings, make connections in the industry, and provide general suggestions on how to operate. Some of these agencies even offer step-by-step guides that make it easy for U.S. business owners to follow.
Work with a PEO
One great option when you’re expanding your company internationally is to work with a Professional Employer Organization, or PEO. A PEO helps client companies by managing the payroll, HR, and administrative services in foreign countries. This allows the client company to focus on running their business, eliminating the administrative headaches often associated with expanding to another country.
The PEO will act as a co-employment agency. This means that your employees will still work for your company, and you will also continue to manage their day-to-day duties. The PEO’s role is to take over the administrative aspects of the company, including all compliance and taxes. This is a great option for U.S.-based companies who are looking to fast-track their international expansion and streamline their operations.
Expand Your Business with SERVIAP
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in South America and Latin America.