Growing a Business
7 Factors Entrepreneurs Must Consider Before Going Global Expanding a business globally is a bold and potentially rewarding move for entrepreneurs. However, venturing into international markets comes with its own set of challenges and considerations. Here are the key factors entrepreneurs must ponder before taking the leap to go global. BY IGOR BOROVIKOV • DEC 25, 2023
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Key Takeaways Markets and trends Economic factors Political factors Entity set-up requirements Legal barriers The competition Workforce needs Opinions expressed by Entrepreneur contributors are their own.
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hen you decide to expand a business globally, there are some serious considerations you need to make. Even though there are big rewards from global expansion, there are also significant risks. Making this bold move as an entrepreneur means facing challenges you must be prepared for. With careful
consideration of these challenges and all the factors that come into play, you could avoid making mistakes that would harm your business. Here are the most essential factors you must plan for before leaping to take your company global. Related: 5 Key Points to Consider When You Are Expanding Your Business Globally
1. Markets and trends The market in one country may differ significantly from that in other countries. Even between close-knit areas or countries that border one another, the culture and the challenges can be unique. If you're not planning for that and are unaware, it could affect your company. You may end up without a market in your new location. It could be that the trend you're trying to get in on has already passed that area, leaving you behind the competition.
2. Economic factors How is the economy in areas of the globe where you plan to expand? That's another consideration I suggest looking over carefully. The population in the new location may love the look of your product and what it can offer, but if they can't afford it, you won't make sales. Not only that, but even an affordable product must align with its competition based on price and features. Make sure the economy can support your decision to expand.
3. Political factors Avoiding politics, especially with customers, is generally a good idea. Still, the fact remains that the region you're expanding into can affect whether your product is well-received or not. Just like you likely wouldn't try to sell conservative t-shirts in a heavily liberal area, you want to make sure there aren't any political factors that will affect your global expansion. Countries restricted due to their government might not be good choices for your expansion efforts. You should choose countries and areas that make your company's expansion as easy and seamless as possible.
4. Entity set-up requirements Are you going to have to spend years and thousands of dollars just to get permission to legally operate in a particular area of the world? If so, bringing your products there may not be worth it. Set-up requirements for your business entity can take time, and there will likely