Expanding your company on a global scale is not easy and will often deter businesses from maximizing their potential growth.
While running a business domestically is risky enough, companies looking to expand globally incur greater liability and exposure with the hopes of gaining ultimately greater rewards. The many payoffs of going global, such as countering destabilizing market fluctuations and extending product life, attract companies to put their best effort forward in achieving this feat.
If you are a company looking to go global, EVAMAX can help you identify tax incentives/grants to finance your business needs or goals. See the tips below for more information regarding how to successfully expand internationally.
Analyzing Market Research and Planning a Strategy
Some of the most common reasons as to why companies fail to expand globally include incompetent expansion strategies and misunderstanding the given market. By building a thorough and accurate knowledge of the market, companies, in turn, can strategize the optimal plan regarding the targeted consumers, distribution methods, financing, and much more.
Just because a business plan works domestically, doesn’t mean it will reciprocate the same results in other markets with different consumer preferences, economic standards, etc.
Realistically, the downfalls to insufficiently developing an expansion strategy are far greater than if companies had executed their plan adequately initially.
In other words, it’s worth it to be patient and plan business strategies precisely rather than enter the market with no approach at all. Even if certain expenses are incurred such as consumer education or market research, all companies looking to go global should develop a thorough strategy.
Accessing Government Grants & Funding for Business Expansion or Exports & International Tradeshows
Financing is almost always an obstacle that companies must face when looking to expand internationally. Employees and businesses want to ensure they are getting compensated for the work they do. Fortunately, the Canadian federal government has taken interest in constructing some of the most generous grants and funding programs in the world.
Government grants can significantly contribute to the growth of a company and provide assurance to businesses trying to reach a goal such as international expansion. Companies who are seeking technological advancement or innovation are eligible for a series of benefits including investment tax credits, tax deductions, and cash refunds.
Businesses can maximize the potential benefits they are entitled to through consulting with SR&ED and Grant consultants. At EVAMAX, our team works to provide clarity and efficiency when seeking government funding for businesses. If you are a company looking to expand globally, EVAMAX can help finance your company through government grants and ultimately contribute to the overall success of your business.
Understanding Cultural, Social, and Economic Differences
Depending on the location, different markets have different cultural, social and economic norms. For example, opening a steak and meats store in India would not be ideal as India has the world’s largest vegetarian population. It is vital when expanding globally to not only understand the goals and culture of one’s own company but also those in the international market as well.
Related: Can Export Program
This boils down to comprehending the cultural framework and communication of the countries we are trying to reach. Companies seeking global expansion must be able to effectively operate and communicate in accordance with cultural/social norms to be efficient in their expansion process.
In addition, it is also important to gain knowledge regarding the infrastructure of international markets. The operations and activities regarding the way companies do business can differ from market to market. Companies should consider certain aspects of the given market such as the reliability of distributors and suppliers, personal accommodations, and more.
Although global expansion is not necessarily the best plan of action for all companies, the rewards for growing internationally are significant. Going global can provide protection from domestic market fluctuations, decrease dependence on limited industries, induce product improvements, and much more.
The process of expanding internationally can be challenging not only from a financial point of view but overall as well. Firms like EVAMAX can help you acquire funding to finance your company and enhance potential growth.