Strategies to save time and money when expanding a business

International expansion offers several opportunities for your business growth. You can gain a competitive advantage in your industry, conquer new markets, and even diversify your assets. However, this type of expansion can be challenging as it requires a lot of time and money. So, if you want to save valuable time and substantial costs while doing business abroad, let’s consider these seven strategies.

1. Research and Define a Global Strategy

Before starting operations abroad, it is important to conduct in-depth research on the new market. In this sense, you must consider the cultural and language barriers, local competitors, import and export regulations, labor laws, taxes, and many other market details. For instance, if you are looking for trading advantages in Latin America, Mexico has a total of twelve free trade agreements (FTAs); while Chile owns fifteen FTAs. This research will help you find out greater business opportunities and, indeed, determine if your service or product could succeed in that location. Even more, you must evaluate if you have the capital expected for your overseas expansion.

2. Virtualize your Office

Instead of spending money on rent, office furniture, and other services, you can use technology to virtualize your office. In this sense, technology has made it possible to work from different locations and at any moment, which reduces the costs of in-office equipment and contributes to flexibility ―as employees can work at home. However, if you do need a workspace, there are new models of office spaces that can save you money. For example, nowadays co-working offices give your business the facilities and amenities to start operations with shared or dedicated desks, conference rooms, technological services, and more. In this case, the company WeWork has estimated that enterprise clients save around 25% to 50% in operating expenses.

3. Be Aware of Global Payments

As you are doing business in another country, you must be aware of the currency type and exchange rates when transferring money, buying equipment, making salary payments, or dealing with any other international payment. Opening a bank account in a foreign market can take time and, above all, these financial institutions tend to charge you higher transaction fees. That is why options like PayPal and Payoneer will make it easier to pay, transfer, and withdraw your business funds directly from a virtual bank account ―saving you significant money related to transfer fees.

4. Take Advantage of Discounts

Get to know your local suppliers. Try to negotiate and identify if they can offer you discounts for buying in bulk. Certainly, by buying in larger quantities, you will have a better price per unit. Even more, you can also barter with other local businesses, establishing a commercial relationship in terms of trading services or goods.

5. Ally with Local Partners

Dealing with labor laws and regulations when hiring local talent can be time-consuming and expensive. For this reason, it is advisable to partner with International PEO (Professional Employer Organization) to comply with national regulations adequately, payroll tax contributions, employment benefits (medical, dental, etc.) and any other legal issue. International PEO partners can save you time and money as they:

• Prepare the job offers.
• Arrange interviews.
• Provide labor contracts.
• Manage the onboarding process, payrolls, and labor benefits.
• Assist you with the termination process and pay.

6. One Step at a Time

Finally, we recommend starting your international expansion in one country instead of venturing into different markets at the same time. By doing this, you will increase brand recognition in your local market and obtain better revenue