Global business expansion: TOP 5 challenges
When it comes to managing a business, expansion is the thing each businessperson starts considering at some point. And if you’re good at what you’re doing, successful international business is not an impossible thing to achieve. It is, however, full of complex and demanding processes. To benefit from international business expansion, there are a lot of nuances to work on and consider. Here we’ve listed the most common challenges you will probably experience when growing internationally.
1. International Shipping
If you’re entering new markets with a physical product, you will face the challenges of international shipping. Yet, it will be much easier if you choose a reliable shipping partner. Let’s say you’re shipping from the US to Romania or you’re constantly in need to send parcels to Poland from the States. Such long distances require quality shipping to assure the best client experience.
The prices of international shipping and other logistics depend on the shipping carrier you choose to work with. It can vary greatly, and the easiest way to find approximate costs is to use the shipping calculator. Some shipping companies have one online where you can easily compare the pricing, or you can simply quote a few carriers to get the picture.
2. Long Distances
When it comes to managing an international business, not only it will be difficult to meet your clients, but it will also be challenging to have live contact with your workers. It might have a negative impact on efficiency and work quality. Long distances between markets you’re operating might also boost logistics and traveling costs.
3. Cultural Contrasts
Different cultural aspects, such as holiday timing or work hours, might have a negative impact on work quality and cause troubles when managing a branch in another country. It is also difficult to successfully enter the market you know nothing about. Each country has different cultural features, and to sell the product or service you must know the buyer.
4. Foreign Policies
Foreign politics and other diplomatic affairs have an impact on businesses more or less. However, you can also benefit from that if you know enough about what’s happening in this field. Although it can be a bit frightening knowing that the success of your business can be influenced by such things as politics, it is surely recommended to be well-informed about it to make smart decisions when operating in a foreign market.
5. Import and Export Regulation
Each country has different import and export regulations and restrictions on cross-border parcels. The customs of some countries happen to be more difficult to deal with than with others. For example, shipping to Russia is considered to be more complex than to other countries. That’s where a reliable and experienced shipping company becomes handy.
The bottom line
Expanding your business into a foreign country is difficult but knowing what challenges to expect can make it a bit easier. While international package shipping is commonly called the biggest challenge, there are others as well. Hopefully, these 5 challenges listed above will help you understand and prepare for your business expansion.