Top 10 International Expansion Mistakes to Avoid

Published on 18 Feb 2021

White paper - 10 International Expansion Mistakes to Avoid

Is global growth right for your business?

Expanding your business to international markets could be transformative for your company, but without a clear vision, a solid plan, and thoughtful execution, it might not deliver the results you expect. Making these 10 international expansion mistakes could set your business back and slow down growth instead of boosting it. Given below are the top 10 international expansion mistakes that organization make:

1. Making a Hasty Offer Letter

When you companies find the perfect candidate to help them thrive in a new market, they are keep to bring the candidate onboard fast. They often make the mistake of issuing a local employment offer letter to a candidate based in another country. This is a mistake because the law language used in the country where the business is may conflict with employment law and general employment practices of the country where the candidate resides. Secondly, if companies to not have a good understanding of local employment law, the offer letter could commit the company to a lot more compensation than initially planned.

2. Hiring for Today vs. Hiring for a Long-Term Fit

Sometimes organization hire people who are a good short term fit without thinking about the long term. This can lead to unexpected complications and challenges. Business should always hire employees based on the long term vision of the company.

3. Not Selecting Entrepreneurial Leaders

There are two types of employees, those who need to be told what to do and those who take lead and are proactive. When expanding internationally it is important for organizations to hire the latter because they already have a lack of understanding when it comes to local customs and cultural norms. 

4. Depending on Independent Contractors

Independent contractors may be a good solution to bring employees on board in a short amount of time. However, they can be a obstacle to sustainable international growth. Organizations should ensure they fully understand the risks that come with hiring contractors before committing to the strategy.

5. Failing to Attract the Best Talent

The job market is competitive. Talented resources have a lot of options around the world. Organizations may make the mistake of assuming they will be able to find good resources in another country. However, if they do not put together a fully compliant and competitive package with salary and benefits, the best talent won’t give the company any consideration.

6. Waiting Too Long to Figure Out Payroll

Employees care about their pay checks. International payroll is very complex, there are taxes and withholdings that must be considered. It is the employer's responsibility to ensure all relevant taxes are paid on time to the local government. Payments must also be made in the local currency. Organizations make the mistake of not figuring out how they will manage their payroll before they start hiring employees in a new market.

7. Ignoring the Importance of Cross-Cultural Communication  

Cross-cultural communication is one of the biggest challenges for companies that go global, because communication styles differ greatly across cultures. Businesses make the mistake of assuming the communication style of employees in a new market will be similar to that of their home country. Often this is not the case.

8. Not Giving Local Teams Enough Autonomy

Micromanagement only leads to negative impacts. Businesses that try to micro manage teams in new markets which is a mistake. This type of management communicated to the employees that there is a lack of trust. Company's also lose out on the local teams knowledge of local culture and customs.

9. Trying to Reinvent the Wheel

Sometimes innovation is unnecessary. Companies that are expanding globally sometimes make the mistake of trying a completely new approach. It is better to stick to tried and tested models that have demonstrably worked.

10. Failing to Get Familiar with Regulations In-Country

Understanding local regulations and compliance requirements will allow organization to be vigilant. It allows them to better evaluate what third parties to trust and take the best actions internally to ensure compliance and avoid hefty fines.

Download the white paper by Globalization Partners for tips on what you can do to avoid these 10 common expansion mistakes. 





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