Bill Cairns, international business consultant and BC Group president, recently labeled small businesses as more flexible in adapting to market demand and different cultural needs. He also said that small businesses are better at cultivating close relationships in countries like U.S.
But expanding into foreign water draws several concerns; would the budget be enough to cover the expansion? Would it be possible to move some of the office equipment and items from the current location to the new one? These are some of the questions that can give second thoughts to small business owners.
That said - it is quite possible to ease the process of international growth and start off on the right foot in an overseas location with the strategies mentioned below:
1. Financial planning
Moving overseas might raise the need for additional finance for small businesses, but with the goal of NEI being to increase the U.S. export trade by double figures in 2014, small to medium size businesses (accounting for 70 percent of the nation’s export) have access to export financing capital with program incentives that let them find new customers, win overseas government contracts and increase sales across the borders.
Moreover, the Small Business Administration offers some export and import special loan programs, which some banks use to provide direct loans to small business owners. But it is important to note that finance should be applied for 6 months prior to growth expansion to avoid documentation and other time-consuming legalities later on.
2. Logistics management
One of the most important decisions associated with international growth is the selection of international moving companies. In this case, certified move managers are the ideal option because they are usually well versed in aspects related to overseas relocation and providing businesses with real-time customer support.
Also, good moving agents offer additional services that streamline the whole process. For example, there are some companies that provide language and cultural training in addition to transport-based overseas moving, so it is possible for small businesses to take advantage of such offerings and perhaps enroll staff members who will be working in the new location(s). Other commonly provided services include custom information, excise duties, local taxes and local import fees calculation.
3. Trademark protection
Trademark and copyright infringements don’t only happen in the case of tech giants or large corporations; even small businesses are prone to these threats, especially when dealing in a unique product or service.
And what’s important to note is that intellectual property rights are different from country to country. For example, in the U.S., Canada, the U.K. and European countries, intellectual property infringement is taken quite seriously, while companies might get away with trademark and patent infringements in some of the Asian countries. It is important to be aware of the local rules for maximum protection.
4. Exit strategy
Reality is harsh in the business world, but there is no other way around it. It is possible that small businesses fail to execute properly, or things go wrong after the first year because of changing consumer tastes.
An example comes from Tim Horton, a Canadian coffee franchise that didn’t do well in the U.S. So in this case, an exit strategy can be a blessing in disguise if things don’t go according to the plan.
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