For companies wishing to make the most of the opportunities available in the global market, there are benefits and risks. Generally, figuring out how they expand overseas safely and profitably requires much consideration. Assuring contracts and systems comply with unfamiliar regulations means increased overheads and time constraints.
Fortunately, solutions exist that allow increased compliance assurance and efficiency for a global business.
How Can Your Business Expand Internationally?
There are numerous ways that companies can expand their operations overseas. Understanding these options includes knowing the kind of services they want to offer clients.
Overseas Company Incorporation
This involves opening a new long term company entity in your target country. This is likely to involve the creation of a separate company entity. Generally, it may be done through the permanent establishment structure types available in your target country.
While this allows for the most control over your overseas company branch, it includes higher liability and responsibility. In addition, you have to familiarize yourself with necessary local labor laws and relevant tax and payroll requirements.
A joint venture involves a partnership with one or more local companies in international markets to form a new shared company. This can be an excellent option for companies who already have a developed product or service but require local support networks to establish themselves.
On the other hand, joint ventures are a risk if you are not fully able to trust your local partner. This may become problematic in the future.
Professional Employer Organizations (PEO) or Employers of Record (EOR) are third-party companies that hire your workers for you in your target market. They act as co-employment or employment outsourcing option, meaning you can avoid employer risks in your target market.
These services can represent the perfect middle option between opening a new company and a joint venture.
Furthermore, an international PEO or EOR provider can take care of all the HR and payroll functions of your overseas employees’ needs. It also leaves you free to hire employees and pursue your expansion goals without compliance assurance worries.
What are the Main Benefits of Expanding Your Business Internationally?
A wider talent pool for new employees
Why limit yourself to the talent available in one country? The modern world means every overseas market is now your local market. Global expansion gives you the option to recruit the best professionals for your needs.
With a company structure spread worldwide, you can hire where your opportunities are found and give you access to the skills you need.
Faster company growth
Operating in an expanded number of countries gives you access to many market options. You may be searching for markets to sell a specific service or product. Still, increasing the scope of your operations will necessarily develop the chances you have for success.
By spreading your services worldwide you spread the risk in case factors beyond your control make one or more markets less viable in the future.
The ability to offer services at all times
When you have staff operating or stationed in branches around the world, you open yourself up to the opportunity to offer support or services in every time zone. Guaranteeing fast response times to customers in different regions is a big way to demonstrate reliability. For companies that wish to attract clients worldwide, having the ability to promise localized and consistent support is vital.
4 Tips to Expanding Your Business Easily Overseas
Make the most of local support
Global expansion means opening yourself up to new and exciting opportunities in different countries. For many companies, entering a new market can be best done by searching for reliable local partners. Then, this simplifies market entry, but it also increases the level of support and investment that your company needs to help service or product succeed.
Local partnerships can improve the overall efficiency of a market entry by minimizing initial investment and overheads due to local expertise.
Streamline your existing company structure
Unnecessary expenditure on larger international teams can be particularly dangerous when you’re expanding. It’s easy for your structure to grow alongside your operations. Still, suppose you can find ways to streamline your processes. In that case, you can make the most of the expanded opportunities available overseas without increasing your overheads.
Ensure your processes are as efficient as possible
Knowing your way around unfamiliar labor and international laws causes delays and costs because it is a learning process. So, try to find ways to make the most of local resources that get you up and running quickly and efficiently.
This may include seeking out experts with in-depth knowledge of the local market or finding resources provided to new companies by local government or business groups.
New opportunities may require you to be available to scale your capacity up or down at a moment’s notice as you acclimatize to new markets. A company or team that can respond to market fluctuations or opportunities can be essential in the first months or years of a new overseas venture.
Find ways to work in a way that lets you transfer workers to where they need to be whenever you need to adapt your business model.
How a Global PEO Can Help Your International Expansion
A global PEO can be a helpful alternative solution to meet your overseas expansion needs quickly and flexibly.
A PEO (Professional Employer Organization) is a local partner that offers you an established company structure. Additionally, a PEO can hire and manage day to day HR functions for your staff on your behalf. This method allows you to enter new markets without establishing a new separate legal entity in those countries.
Global PEO services offer every HR function you need. These include payroll taxes, recruitment, invoicing, tax, and social security contribution management. Typically, their staff is made up of experienced professionals with in-depth knowledge of local best practices.
INS Global is an innovative supplier of international mobility and global employment agency services to over 600 companies in more than 80 countries worldwide.
Finally, our advisors and HR function experts offer in-depth knowledge and support to companies wishing to expand their operations overseas quickly, efficiently, and fearlessly.
Contact our team to learn more about how we can help you achieve your global expansion goals today.