- August 13, 2020
- Posted by: Site Admin
Organizations seek growth. New regions can provide the necessary expansion and audience a company seeks. Strategic Services Agency has been active at the start of the activities of organizations abroad. Our focus is on transatlantic expansion, but we also work with organizations in South-East Asia.
Preparing for a New Market
Organizations have, without being aware of it, created a business model and business process that is deeper linked with the geography where they operate today. That means the model might be challenged in unexpected ways when transitioning to an international market. For example, European organizations are shocked when they understand the extra efforts needed when advertising and selling in the United States. Similarly, U.S. companies underestimate the complexity of the multilingual expectations in Europe.
Understanding the current technologies the company has can greatly impact the success of a business. We analyze the current systems and validate what’s ready for the countries the organization expands to and recommend the necessary changes. During an age where digital technology is rapidly changing and expanding, it is now easier than ever to extend your mission to multiple countries.
Expanding into a new region often entails a learning curve. This learning curve usually involves the people and culture of the countries the company wishes to broaden to. Having a detailed understanding of the people can crucially affect a business’s advancement. For example, the United States of America comprises approximately 328 million people primarily speaking English. It would be beneficial to integrate text advertisement into Spanish, the second most popular U.S. language, but it is not necessary. On the contrary, Europe comprises approximately 580 million people speaking twenty-eight different languages. In Europe, a company has a broader and more diverse audience to reach.
One important aspect that many European based companies don’t consider is the legal issues associated with transitioning to the U.S. market. It is projected that 36% – 53% of small businesses are involved in at least one litigation in a given year. When expanding to the U.S. market, a company must prepare to become involved in a legal dispute with a client. While being sued is not inevitable, it can go a lot smoother if a business is prepared. Integrating the cost of defense is crucial for success in the U.S. market.
Establishing a Company
Understanding the structure of your business is very important for international success. As stated above, many companies create their business around a geographical model. For companies wishing to expand into other countries, a business visa as well as tax regime and transfer of dividends are all things that a company should consider. More often than not, different countries have varying rules and regulations on the products that can be imported and distributed in their country. Having this knowledge is crucial to success as an international company.