Every business owner plans to expand their business as much as they can in order to increase their profits. If you have been doing well in your domestic market, then you may be turning an eye towards an international market, too. While this may certainly be a method in which you can derive and increase your profits, it can also be a great failure if you don’t take necessary precautions. To ensure your success, consider these four challenges before you make that expansion.
It’s a little bit more difficult to have a flat price for your products or services internationally. This is because instead of just a group of states, you’re working with a group of individual countries that sometimes have their own currencies and their own exchange rates. Planning your budget and setting prices can be difficult if you don’t consider each individual country’s exchange rate. You may end up setting your prices too high or too low and could either drive customers away or be taken for a loss.
Another aspect you need to consider is customer care and service. The different languages alone can make this difficult if you don’t have staff on hand that can understand foreign languages. In addition, you may be taken for a ride if you find individuals who are using fake names to complain or attempt fraud with your business. One solution is to use a name matching tool that can help build a legitimate customer database, as well as limit fraud. With properly trained employees who can speak the native language of the countries you’re doing business with, you can protect your business and provide excellent customer care.
Logistics can be another nightmare to deal with internationally. The rates of shipping are different and you may have to add that into the price of your services or products. However, this might make the price too high or no longer competitive. As such, you may consider going with a cheaper shipping company, but that can cause problems if they don’t offer tracking services or frequently lose the items they’re delivering. Having a logistics plan is key for international success.
One final aspect you should consider is taxes. Each country has a different tax rate, and you’re going to need to know all of them in order to set fair prices that will encourage people to buy your product.
There is a lot to consider when thinking about bringing your business to an international market. With these tips in mind, you should be able to plan a business model that can be successful domestically and internationally.