That businessman who doesn’t dream of one day to take his business out of the country and open offices in the near (and/or far) countries is bad. These are big plans, to build which not all are decided. For example, in the United States, out of 26 million registered enterprises of small and medium-sized businesses, only 1% reached the international level. The reasons for this localization are many. One of them is geographical. From this point of view, Russia is much more fortunate: its geographical location and historical development provide a wide field for activity, at least among post-Soviet countries. But still, there are a few pitfalls that can significantly reduce your chances of success.
Here are the top 5 mistakes to avoid when taking a business to the international stage.
1. Reduction of labor costs of talented people
Truly talented professionals are not cheap. That is why many companies from the desire to save on employee pay are looking for outsourcers to serve production and work with clients in third world countries.
Looking for the most inexperienced or cheap, even if talented people – a big mistake when moving the company to the international level. This applies to all areas of business without exception. You have to hire people who know what they are doing, instead of those who can only guess what to do. Knowledge without experience, in this case, does not cost anything. You can use appvalley to get free all paid app on your mobile.
2. Refusal to hire a local top manager
Always hire leading sales specialists (or teamwork) where you plan to open your own representative office. These people are already familiar with the specifics of the business in your chosen region, they know how to talk with local customers, understand the nuances, and have the right acquaintances.
Properly using feedback from such specialists, allow them to prove their economic efficiency by satisfying the needs of local customers and helping you increase profits. Give them the power to make their business successful, and you will avoid the second most important mistake made by companies seeking to succeed in international business.
With all this said, be sure to set clear expectations about when and how they are required to work with your team abroad, as well as the degree to which they participate in decision-making. At the same time, minimize the amount of paperwork, these people are hired to make money, and not to fill out reports, inquiries, and questionnaires.
3. Facelessness for their remote subordinates
Controlling every step of their remote managers is an overwhelming and unjustified task. When opening a business abroad, you should be prepared to provide certain powers and freedoms to branch directors. But completely go into the shade is also not recommended.
People should know who they work for, with whom they work, and why they work. They should understand that they are trusted, but at the same time they will not let things go by themselves. With modern equipment, there are no excuses for not calling your overseas office daily for conversations with top managers or not having a video conference with a remote marketing team once a week. And yet, on the other side of the border some professionals know the specifics of local business and each specific situation from the inside, so learn to listen and politely give advice,
4. Entrance to the international level solely from personal ambitions
There is such a “call-response” mechanism, and your business should develop solely for reasons of timeliness and justification. If there are no prerequisites for the business to enter the international level, then your ambitions alone are not enough for the success of this enterprise.
If the business does not go well in the local market, this does not mean that it is time to try somewhere else, especially outside your country. Perhaps the point is you, not geography. You can open a business abroad only if it is justified, you stand firmly on your feet and get the first foreign clients working in your own country. Only in this way, the invested funds will pay off, and you will not get bogged down in debt litigation.
5. Lack of plans for globalization in the early stages of a business
Planning to enter the international market is necessary from the first steps of a business. This should not be an end in itself, but your enterprise should take every step in its development to go out of the country of deployment. Documentation of processes, development planning, work with suppliers and partners – all this with a competent initial statement can be smoothly transferred to another business and in another country when the time comes for this.