Leaders in the business world are always looking for the next leap. Whether it’s an advanced return on investment, hiring goals, or profit margins, there is always some way to grow for the better. Before launching your business to new heights by expanding, reevaluate the proposed plan and what may be missing.
Types of Expansion
Expanding a business can mean a variety of different journeys. A restaurant could be opening a storefront the next town over, or a company that sells water bottles could send remote sales associates to another country.
One type of expansion is organic growth, where a business has cultivated enough profit and success that it can progress outward, either through more product offerings, office space, employees, or new branches.
Many companies grow through mergers or linking with a similar company to increase their presence in the market and meet higher demand.
Global expansion may seem like a massive undertaking, but with the innovations of remote work, this can be a reality for many businesses. Consider relocating a few sales members to scout a region or build a brand presence in another country. They can also maintain a solid connection with the rest of the team by simply hopping on a video conference to chat.
Benefits of Expanding
As a business grows, so does profit. Exploring new markets equals more demand and more products or services sold.
Diversifying revenue into multiple streams ensures more stable sources of income. If expanding globally, the revenue is no longer subject to the economic fortunes of just one country.
In the new territory, country, or region, there are also new people and ideas. What innovative and creative people are just waiting to be discovered? What tastes and unique cultural aspects will allow fresh advertising efforts? In a new market, the possibilities are endless.
Challenges to Consider
These opportunities seem like a dream, but there are also stark challenges to consider.
1. Overlooked Laws
Before taking the leap, know all of the employment laws and regulations in this new region. Are there different guidelines for wages and benefits, like minimum wage or overtime pay? What benefits may change in this new space, such as health care?
Finally, consider how the team will navigate work visas and other requirements. It might be disastrous if employees have to abandon their new posts because of improper documentation.
2. Unconsidered Expenses
Consider any and all expenses that will come with this move. It is becoming the norm for companies to front the costs of remote relocation for their employees.
Will the technology requirements and the Wi-Fi setup look the same in this new region? How should the company navigate family relocation and schooling? Helping employees adjust to a new environment is a vital part of this plan.
3. An Under-developed Plan
For global expansion, a global mobility strategy takes into account these expenses and cultural differences, but it also forces business owners to view this expansion as a unique step. Expansion is not a default option, but a project that takes the cooperation and hard work of an entire team.
Be ready to face challenges as well. Like all risk-taking moves, there may be a dip in revenue for a while as the systems are set in place and the company becomes acclimated to the new landscape. Take the time to research and keep open communication with employees and contacts to ensure a smooth transition.
4. Incomplete Team
To accomplish this strategic plan, businesses need the right people to do the job. If the new location has a different primary language than the home office, hire a translating team for advertising and interpreters for meetings with local contacts.
Local businesses and cultural experts are also vital resources. Understanding what makes this location unique can aid in creating lifelong partnerships and better-targeted advertisements.
Finally, ensure the safety of the new employees. Outsourcing labor can be a major hub for unethical treatment and exploitation, all for the sake of cheaper labor costs. Valuing the safety and fair treatment of team members is more important than profit and something that should be considered in every business’s expansion plan.
Taking Time to Prepare
Expanding a business is a complex process of challenges and benefits, but with the proper strategy and mindset, many businesses can someday reap the benefits of rapid global expansion.
Stay up-to-date with regulations, expenses, and employee well-being to ensure a smooth transition and future success. Even if now is not the right time for expansion, having this goal keeps the company gazing toward the future and always striving for success.
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I’m the Managing Editor of ReHack.com and have over 5 years of writing experience covering cybersecurity and business tech. I’m also a contributor at Business.com, MakeUseOf, Lifewire, and more.
