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How to Expand Your Business Internationally

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Archives, Global Site Selection, Global Trade Daily, Site Selection

How to Expand Your Business Internationally

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Running a successful business in a domestic market is easy for experienced business people. Opening a shop abroad is harder, but not very much. What can be extremely tricky is actually attracting foreign potential customers, turning them into paying customers, and surmounting the many challenges that come with international business. These challenges include cultural and language differences, unfamiliar employment and overall business laws, unclear taxation and VAT remittance regulations in different countries, and international marketing challenges. If you wish to expand abroad, you can overcome the said challenges by following these best practices in international expansion:

1. Leverage PEO services

PEO service providers help to expand businesses to hire staff, manage payrolls, and manage employees in foreign territories. Basically, a professional employer organization (PEO) will provide comprehensive human resources support for your business so that your senior executives can focus on actually running the corporate side of the business. They provide your international teams with the professional and personal support they need to be optimally engaged and productive for the benefit of your business. They help you bypass the cultural barriers that overwhelm employers when hiring and managing new talents in unfamiliar cultural settings.

In most cases, PEOs run a co-employment model where they ensure that your business meets all set employment and compliance laws without necessarily having a physical presence in a given country. The advantage of using such a model for your international expansion is that your business can dip toes in multiple foreign markets without committing to building physical offices. It also offers your business a flexible human resource capability; the flexibility and fluidity that businesses need when upscaling/downscaling workforces in new markets. Therefore, if your company operates in India, you can see that partnering with an India PEO would be the proper solution for the rapid growth of your company.

2. Leverage local influencers

The biggest marketplace in the world right now is the digital space, notably social media. That is why you must have a workable digital marketing strategy (and a strong online presence for that matter) whether your business is local, national, or international. A key component of digital marketing is social influencing.

You probably already understand what online influencing is about but in case you don’t, online influencers are celebrities who already command huge followership on social media. People who can influence shopping decisions either by directly campaigning for your products or by sharing their videos or photos while using your products. Studies show that about 66% of all customers across all industries trust the opinions other customers post online, and the surest way of influencing these opinions is through social media influencers.

Now, this is the catch: When expanding internationally, you need to meet your prospective customers during their research phase. You need to capture their attention immediately; they search for products in your niche, convert them to business leads, and close the deal on the spot. It is probably the first time they are interacting with your brand/content, so you have to make the best first impression otherwise they will be lured by the brands they are already familiar with. Subtle product mentions and testimonials from influential people will help you create the best first impression. You, however, have to identify and connect with influencers who appeal to your audience if you are to effectively leverage influencer marketing for international expansion.

3. Find the right expansion partners

It is hard to navigate new markets by yourself. You need the help of local partners who understand the unwritten laws of the land, local supply chains, and distribution channels. But not all local partners are good for your business. You need to find industry leaders who, on top of understanding the nuances of the local market at hand, have substantial experience in international business expansions in other markets. You can always contact their previous collaborators for reviews, something you cannot get from partners who have never been out of their comfort zone/market. It is also wise to choose expansion partners with whom you share a common ground- a company whose business culture doesn’t conflict with your vision and mission.

Now you know the kind of partners to look for, but where exactly do you look? One way to find the partners you need is through your business and professional networks. Your business associates can recommend their international associates to you who’d turn out to be very helpful in your expansion plans. Another source is the government of your current market. If you operate in Europe, for example, you can tap into the database of the Enterprise Europe Network (EEN) for trading advice and collaborations. Foreign embassies, as well as trade commissions back home, also have databases filled with the knowledge that can come in handy during your quest to find international partners. And if you already have a set base in the foreign market, attending local expos and trade shows can give you access to a pool of potential partners.

4. Leverage government resources

Most governments help their ambitious entrepreneurs to go international as a way of encouraging the exportation of locally-produced products and talents. Your government probably holds Trade Events where successful multinational companies’ CEOs and other industry experts train local entrepreneurs on how to go global and actually succeed. You can learn a lot in such events, from exporting fundamentals, understanding international buyers, working with foreign distributors and product representatives, to how you can market your products or services to customers who don’t speak your language. The events also put you in touch with other ambitious business owners from whom you can gain insight and insider perspective about your chances abroad. Other resources that can help your international expansion plans are catalogs that contain special country-specific market reports authored by prolific market experts. In the US, such catalogs are accessible online through the Market Research Library.

Conclusion

International expansion is, to many people, chaotic and stressful. But it doesn’t have to be. You can tap into other entrepreneurs’ experience to formulate a workable expansion plan or, if you have the budget, conduct your independent country-specific market research. Our 4 tips will get you started, but you must consult wider if you are to succeed with your first expansion attempt.

travel
Airports, Archives, Global Trade Daily

The Role of a COVID-19 Vaccine in the Travel Industry

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Hope got rekindled in the heart of individuals, organizations, and nations following the news of producing a potent vaccine that could help end the COVID-19 menace. There has been a recorded increase in the travel industry’s activities with the renewed energy in people to resume travels.

Nations that earn primarily from the participation of foreigners in business, investment, tourism, and so on are hopeful that they can restore their economy and improve their citizens’ living standards when the virus’s vaccine is in use.

As we are expectant of the proper circulation of a vaccine, we should take a moment to analyze the changes the pandemic outbreak has made in our lifestyle, particularly traveling habits.

Ways in Which the Pandemic Outbreak Positively Affected Travels

As much as COVID-19 has presented us with significant challenges, the pandemic outbreak did not leave us without some blessings. In response to the deadly virus, several changes got incorporated, which has improved traveling for good.

The continuation of these changes despite the vaccine’s availability will do both the travel industry and passengers a great deal of good. These changes and policies adopted include the following:

Flexibility

Airlines became a lot more flexible with their payment and refund policies since the outbreak of the COVID-19 pandemic. Various airlines offered a full refund of fares for booked or paid flights to countries with travel bans. Several airlines employed different means to make payment a lot more comfortable for their passengers.

Maintaining flexibility, regardless of the vaccine, could change travel for good. Not to be too hopeful, these airlines might withdraw some of these leniencies, but many would remain.

Traveler’s Behavior

Travelers now prepare adequately for travels. It makes it a lot easier for airlines to control boarding. People are more careful about their health and, as such, are more responsive to regulations. This habit has been a good chance for travels since the onset of the pandemic.

Health and Safety Protocols

The airline now prioritizes safety and health protocols. Airplanes are now well cleaned and sanitized to ensure a virus-free environment.

One would also notice a very high degree of orderliness at the airport due to the social distancing protocol. People do not have to crowd themselves in the queue, making traveling a lot more stress-free for passengers.

Expected Positive Impacts of the COVID-19 Vaccine

With a proper circulation of the vaccine, where everyone can have access to vaccination at an affordable price, travel will experience a significant change for good. Considering how much influence the pandemic outbreak had on our traveling habit, we expect to record the following changes:

Improved Travel Experience

With the release of the COVID-19 vaccine, traveling will be a lot easier. Several boarding protocols that stress out travelers, like getting tested for COVID-19, maintain social distancing at the boarding gate, arriving at the airport many hours before take-off time, may be relaxed. We can finally return to a more comfortable process with the provision of the vaccine.

Cheaper Fares for Travelers

With the vaccine, airlines can allow more passengers on board a flight. It will help reduce flight fares as more people can share the burden of transportation cost per trip. A lesser fee will make transportation more affordable, and people can plan for more trips than before.

Assurance of Safety

The major discouragement with travels was the fear of safety. Several travelers canceled their trips except when it was inevitable. The vaccine would mean that people can now tour the world without fear of contracting the coronavirus disease. They also do not stand as a threat to others’ safety while visiting new places, so long as they have the necessary vaccination.

Reduced Cost on Maintenance of Health

People now have to spend less on maintaining their health with the vaccine. Airlines can also reduce the cost of ensuring a highly hygienic travel environment by the COVID -19 standard. Several regular travelers had to forfeit planned trips because they cannot afford the potential cost of maintaining their health condition if they probably got down with the virus. With this out of the way, traveling will become much more feasible.

Even with the hope of a new vaccine, we have to ensure that we plan adequately for safety ahead of a trip. It would be best if you had all you will need while in another geographical location. You must get an international driver’s license in the likelihood that you will have to drive yourself around while on your trip.

Significant changes have begun already, with the news of the vaccine around the corner. We all cannot wait to experience our world once again, without the fear of a pandemic.

business
Archives, Foreign Trade Zones, Global Trade Daily

4 Things Everybody Gets Wrong When Starting a Business in China

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Starting a business is a brave and bold move. It requires effort and you may even have to sacrifice an average of 70 hours a week, for probably the next 2-3 years, in order to get the thing running smoothly. This, in essence, is what most startups fail to recognize and understand. Some say success doesn’t come overnight and to some extent this holds water. So, if you are looking to open a new chapter in life and start a business, here are some problems faced by startups that are considered wrong when starting a business.

1. Business Name

This is a mandatory requirement and if you have in the past had another startup, you know this is required. So, for those starting up a new business, or for those venturing into this world for the first time, a Business Name is necessary. Once you have registered a Business Name, you may go a step ahead to getting a logo for your new business as well as acquiring a domain name. All these three should be unique and not like any other registered business. This will be the trademark of your business and if in doubt over the name, logo or domain selected, there are sites that can help you know if the one you select or create has already been taken. By failing to do so, you may end up registering using either a business that closed or one that never took off, eventually bringing confusion to prospective customers when simply searching for your business.

2. Business Plan

This is another necessary requirement. Failing to have an established business plan is like planning to fail. One thing that a new start-up again may confuse is a Business Plan and a Business Structure. These are two different things. First, doing some research and deciding whether to be a Sole Proprietor, venture into a Partnership or register a Company, should be the first step into knowing what business plan to have. Once you have decided on the type of business, you can then lay down the plan. Contained in a Business Plan are aspects of funding as well as what type of business venture to undertake. It will also entail how you plan on spending, so as not to over or underspend.

3. Business Structure

A business structure is different from the Business Plan. While new startups confuse this, they eventually lack a management scheme and gradually finish to poor management. So, a Business Structure is what entails what every employee in the business is to do. From the executives, accountants, superintendents, junior staff to all other working employees. When deciding on what structure to have, it is advised to seek the knowledge of professionals and experts in the field as such, professionals such as lawyers, accountants, and even some businessmen may help you understand and decide on the best business structure for your business.

4. Business Location

This is a vital element. For those looking to register a business in China, failing to understand the laws of the land could lead to problems. Again, this is among the biggest problems faced by startups. You will need to understand laws relating to taxes, registering the business as well as the many different laws within the country. So, the laws in different countries are different, and to avoid problems during startup, it is similarly advised to seek the counsel of those experienced in the field or do thorough research.

5. Nature of The Business

While you will be required to state the Nature of The Business when registering it, it is an essential aspect in determining how things will be run and what is to be done. In other words, this is a sure way to set yourself apart from other ventures depending on the type of business you carry on. Note that, this is also an aspect in the Business Plan, and because of that it should be a well-researched type of business to avoid huge competition. Though competition is good, you will need to offer something new to the Nature of the Business so as to keep the light on.

So, considering this factor carefully and staying in line with them, you will be on the way to having a fruitful business and even though it may take time, it is worth the wait. It is also recommended to do more research over the matter of opening a business to have enough knowledge when you do so.