INTERNATIONAL EXPANSION 101KNOW BEFORE YOU GO
In today’s global market expanding overseas is no longer a luxury ...
... it’s a necessity.
American businesses are aggressively pursuing international expansion to increase revenues
and win new customers.
Listen to the webinarListen to the webinar
However, there are challenges that come with international expansion.
Listen to the webinarListen to the webinar
The VP of Sales walks into the Head of HR’s office.She has two signed offer letters to hire new sales people in France (or Zimbabwe or anywhere).
Listen to the webinarListen to the webinar
The company doesn’t have an office in France (or Zimbabwe).
Listen to the webinarListen to the webinar
Sound familiar?
Listen to the webinarListen to the webinar
Listen to the webinarListen to the webinar
You need to take a lot of things into consideration in these situations.Entity options, contractors, employees, employment contracts, local requirements, expat management ...
Listen to the webinarListen to the webinar
... and as each country is different, there’s never a one size fits all answer.Getting it wrong can be costly for your business
For example, a US-based company hired an “independent contractor” in Columbia.
After five years, the company needed to terminate her due to economic reasons.
Listen to the webinarListen to the webinar
But the worker went to a labor court and claimed that she was, in fact, an employee.
The court ruled in her favor.
Listen to the webinarListen to the webinar
The result?
The company had to pay accrued vacation time, a 13th month paycheck and other compensation to the employee, as well as being on the hook for
various back taxes to the government.
Listen to the webinarListen to the webinar
The result?The company had to pay out accrued vacation
time, 13th month paycheck etc. to the employee as well as being on the hook for various back taxes
to the government.
Read this for more information on contractor classification.
Listen to the webinarListen to the webinar
If you want a textbook international expansion, follow these 10 best practices ...
Listen to the webinarListen to the webinar
1DEFINE YOUR MOTIVES
AND DO YOUR HOMEWORK
Is international expansion right for your business?
What are your goals in setting up international operations?
Listen to the webinarListen to the webinar
2START SMALL AND DON’T OVEREXTEND YOURSELF
Start with 1-2 key goals in a small slice of a foreign market.
Listen to the webinarListen to the webinar
3CREATE A DETAILED
PLAN FOR SETUPDetermine early on how you will structure
your company overseas.
Understand permanent establishment risk.
Listen to the webinarListen to the webinar
4RESIST THE URGE TO STANDARDIZE
Entity setup will vary by country.
Depending on your activities, a branch entity may make sense in some markets, whereas a
subsidiary may make sense in others.
Listen to the webinarListen to the webinar
5KNOW THAT ALMOST EVERYTHING WILL BE
DIFFERENTHiring employees, issuing stock options, opening a bank
account, filing taxes, setting up insurance and other benefits for new staff – every country has completely
different requirements for each.
Listen to the webinarListen to the webinar
6DON’T UNDERESTIMATE THE EFFECT OF CULTURE
Learn and respond appropriately to different customs in a business setting.
Listen to the webinarListen to the webinar
7PREPARE REALISTIC BUDGETS
AND CONTINGENCY PLANSSpending can start out restrained, but mushroom in the future.
Listen to the webinarListen to the webinar
8RECOGNIZE THAT YOU’LL
NEED INITIAL AND ONGOING SUPPORT
HQ finance and HR need to be involved. Create transparency among HQ functions and local management.
Outsource functions where possible.
Listen to the webinarListen to the webinar
9BE PATIENT
Rapid growth can mean rapid failure; planning can facilitate success.
A best practice is to double the amount of time you anticipate you’ll need to become operational.
Listen to the webinarListen to the webinar
10GET HELP
Complying with constantly changing target-country regulations is complicated and time-consuming. Get
expert help so you can focus on what’s important — your company.
Listen to the webinarListen to the webinar
Following the 10 expansion best practices will help ensure
you have smooth sailing as you expand your operations overseas.
Listen to the webinarListen to the webinar
Listen to the webinarListen to the webinar
For more expert advice, listen to our webinar on expanding
internationally.
Get global updates and other important information delivered to your email.
www.radiusworldwide.com
Or visit the webinar archive for more insight from the global growth experts.
Subscribe to the Blog
Visit the Archive
Got yourself in a kerfuffle over your loonies and toonies?
Connect with Radius:US: +1 888 881 6576 UK: +44 (0) 203 005 5518
Radius helps companies expand and win globally.
Expanding internationally?Don’t miss this!
GLOBAL LOCATION FRONTIERSWHERE TO GO FOR YOUR BUSINESS TO GROW
View the Slideshare