Expanding internationally can be pretty exciting for your business but the truth is, every country you plan to operate in is different and you need to consider several things before you decide to conduct business across borders.
You should first conduct your research thoroughly before making any major business decisions and think through each possible scenario carefully. Understand the markets you plan to enter by taking a trip to that country to gain first-hand experience on how your business can track there. Speak with existing businesses located where you want to operate and launch a soft opening before investing fully on a new entity in a totally new geographical location.
You should also check local competition as it is not easy to convince local customers to trust your brand when a similar product is being made and offered in their home country. Do you have a unique selling proposition that will persuade customers to buy from you instead from a local brand?
Aside from your market research, it is very important to learn all the business, tax and regulatory issues of the country you want to operate in. Know the taxation in different jurisdications and adopt a holistic view of the tax system of Australia and the other country, considering protocols around double tax agreements, transfer pricing, thin capitalization, withholding tax, source of income, residency, GST, stamp duty and payroll tax.
Another consideration is the possible language and cultural barrier. Find out if your product would be suitable in that country and if there are challenges that may require you to change your packaging while being consistent with your brand. It may be prudent to hire a local research company to give you local advice, legal support and local business resources but make sure you connect them to your professional advisers in Australia to ensure all jurisdictions are being properly managed. Don’t forget to get feedback from the other country’s distributors, workers and customers as well.
To understand how your business can expand internationally, click here to speak to business accountants and experts. We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.
As you look for different ways to grow and improve your business, seeking professional advice from a business consultant could prove to be an important and helpful decision. Contact Sky Accountants now.