Obviously, many businessmen dream of becoming reaching the global marketplace because it has the potential to provide them with an increased profitability through reaching a large number of customers.
But there are many issues you need to consider before going global because the business norms differ from country to country. And if you do manage to get pass the trade barriers such as the tariffs and the quotas that is set up by the government to protect their domestic industries, you still have to deal with the customers themselves before your products will be bough.
In line with this, here are some of the most important factors you need to consider if you want to have a global reach for your business.
1. The laws – countries do have different laws that govern business practices so what may be considered legal to once country may not necessarily mean that this same practice is legal in another. It is therefore important for you to consult with local lawyers and accountants regarding the laws in their particular country.
2. The culture – every country has its own deep-rooted culture that makes it unique from other countries. You need to know the local culture even before you can promote your product effectively in the business environment.
3. The promotions – aside from the fact that you need to be sensitive to the taste and preference of the local market and be careful on the promotions that you do as not to offend them, you also need to be flexible to follow government regulations. For example, there are countries that do not put a limit on the amount of money that can be won by a local resident when a particular company holds a contest. However, in some counties the amount of earning can be restricted so you need to know about these rules and requirements even before you start your promotional strategies.
4. The locality – you should note that there are countries that have different government rules according to region. You need to be cautious in making different promotions and activities in different regions in a new territory because a practice that may be permitted in one area doesn’t necessarily mean that it will likewise be acceptable in another area even though it is in the same country.
5. The budget – penetrating another country may cost more than you are expecting because of the different legalities you have to deal with. At the start of your operations, you should also expect to encounter a lot of challenges because you are just starting to make your presence felt in a new territory.
Overall though, going global is certainly a worthwhile endeavor for any business despite the challenges it presents because it offers you a chance to make your business become more popular and more profitable.
Together we shall win,
Adesegun Akitoye
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