Scaling up and crossing borders is no easy journey for any business, no matter its size or ambition. The process of navigating different regulatory landscapes should not be underestimated and can be costly if it is not done properly.
There are many considerations that need to be addressed when entering a new market – whether exporting or opening a new office – from having access to the right financial products, implementing an effective marketing strategy or managing currency volatility.
As the UK begins to redefine its position in the world following the vote to leave the EU, such preparation has never been more important with the potential for regulatory change and further economic uncertainty as the negotiations progress.
With this in mind, what are top considerations for a business expanding internationally?
- What are the rules of trade in the new market? Businesses should be clear on what the relevant trading requirements are in order to do business in a specific market. Tariffs, quotas and business taxes can have an unexpected impact on bottom line if not planned for in advance.
- How does the currency in the destination affect your business? Whatever the adopted currency of the new market, it will affect trading in some way. Depending on how volatile a currency is, businesses should consider whether it is appropriate to hedge against unfavourable currency movements in order to avoid swings in currency affecting the value of income or costs.
- What are the employment laws in the new market? If a business intends to hire employees overseas, then they are likely to be local employment laws that must be abided by. These may vary across different sized companies and industries, but it is critical that a business is aware of the nuances before making a decision.
Whilst growing a business’s international presence naturally requires a significant amount of groundwork and investment, the rewards offered by international trade can outweigh the risks if the business has the right preparations in place.
World First will bring this theme to life at THINK GLOBAL 2016 on Tuesday 11th October at One Marylebone in London. The event aims to provide SMEs with useful insights and advice on how to maximise the opportunities offered by international trade. Bond Dickinson, one of the leading UK law firms and a fellow partner of Exporting is GREAT, will be hosting an interactive session looking at some of the regulatory aspects businesses encounter when entering a new market. They will be joined by speakers from across the business community who will share their experiences as we explore the opportunities and challenges that come with expanding globally.