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Most entrepreneurs, at some point, will consider themselves ready to expand their business internationally. Like every business venture, there are risks and opportunities at the time of expansion. It is important to conduct a serious business evaluation to decide if it is the right time for your company to expand, as well as to select the appropriate market.
There are several strategies to expand your business, however, we’ll cover the simplest and most time effective methods:
Hire local staff through a PEO
If your company already has client operations or prospects in the market that you are looking to get into, the most convenient action to take is to hire a local person with experience in your sector. They can help you by sharing insights into the local market and help you start activities, maintain relationships with current clients and follow-up projects.
The greatest advantage is having an experienced person, who knows the local culture and will be able to support you in navigating a market that is new to you.
If you are hiring through a PEO like SERVIAP, you can direct your staff while we take care of keeping the personnel records aligned with local laws and their payments, according to local laws and standards.
Find a local business partner
If your company manufactures products or has services that do not require onsite personnel, but need to be promoted or marketed through a third party, a local business partner can be your greatest ally. To find the best partner you must conduct a study of the company you will select to be your representative in the local market. You must take into consideration the response times and the quality on the information they provide to you, as this company will support your local growth. You must find one that meets your expectations to maintain a long-term win-win relationship.
Opening a legal entity
Having a legal entity can have advantages and disadvantages, depending on whether it already has significant operations or not.
Along with conducting an analysis of where it is convenient to open, you will need a comprehensive team to conduct studies that involve:
- Lawyers
- Accountants
- Human Resources
- Renting an office
- Salary vs benefit studies
All this can entail a significant investment and take more than six months, but then again, if your operations require it, it will be the best option.
Acquire a local business
If your company already has operations in the country, the acquisition of a local business may be a good option. It could already have the processes and customer base that allows it to operate and avoid a high learning curve.
However, it is important to perform a due diligence and to check that the company you are thinking of acquiring is financially healthy, in addition to reviewing other legal aspects that must be covered in the country.