Expanding your business overseas is a huge step for the growth of the business. The opportunities you get are tempting, and this is the reason many startups make a quick decision at this stage. Many times international expansion fails because companies are not careful enough.
This is because the scenario out there is different from the one at home. Several factors need to be taken care of. Hence, we have compiled ten such common mistakes you need to consider before you think about expanding your business internationally:
Startups tend to prefer inexperienced but talented workers who are ready to work for lower wages. This is a mistake because hiring human resource is the most important investment to make. Most businesses have admitted that their operations are guided mainly by customer feedback. Experienced professionals have more knowledge on what a client wants.
Often companies quit too soon when they don’t achieve their goal in a period of time. You should learn not to expect too much as it will take longer than you expect and you will need to put in a lot of efforts to reach your goals.
Not Having a Remote Decision Maker
The organization should give more decision-making powers to the local team. Any team needs strong leadership to thrive. You need to designate a decision maker and define areas where he has full authority and those where he needs to consult upper management.
Too Much Pride
You might have earned a reputation in the local market, but that does not mean you will be so easily recognized in the international market. There will be times when the international clients will ignore you or disrespect you, but you will need to be flexible to their mannerisms and priorities as it is you who is trying to enter their world and not them.
Not Paying Enough Attention
Another mistake made by organizations is not visiting the remote teams enough. It is important to show you presence by visiting or calling and build stronger relationships. Make sure that the purpose of these visits is to support and learn and not to criticize.
Not Being Prepared
Companies have a tough time making a transition to other markets when they are not prepared in advance for it. They should start preparing for that right from the time the need for international expansion was felt. This way you can streamline your internal operations and decisions to bring globalization into focus.
Delegate Relationship Building
Do not delegate the task of building relationships with your junior staff. When it comes to building higher level relationships, you have to do it yourself.
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Not Building Partnerships with Key Influencers
You are new to the place nobody recognizes you; you cannot reach out to people on your own. It is important to partner up with the primary influencers to get your way into their world.
Sticking Too Much to Your Rules
You need to be flexible with their way of working. There might be changes in written agreements, but your company should be able to make quick decisions and accept challenges.
Focusing on Short Term Goals
Manage your business to focus on operations that matter in the long run rather than looking for immediate profitability.
The Bottom Line
Some companies have collapsed in the international markets of the above factors. A wiser step would be to learn from their mistakes before making your own.