With the domestic economy still a bit sluggish, you may be wondering whether it may be time to take your small business global.
After all, going global may seem like a good idea as you have the chance to reach a whole new customer base and can tell people that you are the owner of a global company.
Still, going global may not be for everyone. A panel of entrepreneurs recently addressed this issue for The Washington Post. Here are three considerations they gave for business owners to think about before going global:
- Do you Know Foreign Laws/Requirements? If you think U.S. laws are complicated and confusing, try learning another country's law, like China's. The reality if you open a business in a foreign land is that you have to comply with foreign laws. Similar requirements and paperwork you complied with to start your company in the States will also have to be completed for your foreign branch.
- Is Your Business Truly Global? Not every business is a global business. While it may sound cool to say you have a global brand, your small clothing store may not be suitable for a boutique in Paris. Many businesses target domestic customers and are not suitable for going abroad. Perform a realistic and honest evaluation of your business and brand before attempting to tap foreign markets. You will also want to make sure that the foreign country you want to open business in is a cultural fit for your business.
- Are You Rushing Into This? A kiss of death for many small businesses is expanding too quickly. This problem is magnified when you choose to expand overseas as it can be much more expensive to do business internationally. In general, you should make sure you have a healthy and thriving business in the United States before trying to tap into business overseas.
It can be extremely difficult and cost prohibitive to start a global business. It often takes domestic companies years before they even consider going global. If you considering taking this global step, you may want to talk to a corporate law attorney to help get you properly set up.
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