It’s a dream amongst pretty much all those that start their own business that, one day, they’ll endeavour into global expansion. This can take years to achieve, as you first need to get established and make a name for yourself in your country of origin. However, it is not an impossible dream, as many different businesses expand successfully each year. However, for first-timers, it can be a minefield. Luckily, there are various steps that you can take to ensure a smooth transition.
Here at Payroll Worldwide, we specialise in providing payroll and human resources (HR) services to businesses in Latin America and those wishing to expand. From recruiting solutions to providing a concierge service for expanding businesses, we’re here to support you should you wish to make the journey to Latin America.
Strategy and Market Research
Without a sturdy business plan, global expansion might not be successful. It might be perfect for your local area, but is it right for the country that you’re moving to? When developing your business plan, try and localise it to the region you’re expanding to. This way, you can ensure that it has a chance of being more successful. If you need help developing a business plan, conduct some market research in the area to identify if there is a need for your business and the products or services that you are selling. You should also consider your growth options, such as licensing arrangements, exporting and mergers and acquisitions.
If you’re moving a continent, it’s a big area to cover; try and narrow it down to one country. This way, you can deliver a more personalised service. Look out for potential competitors and markets that you will need to compete against and enter. Having a full scope of knowledge will help you in both the short and long term. You may also want to consider a sales strategy during your global expansion plans, and work out your value proposition and pricing.
Compliance and Tax Laws
Although some countries have more strict or lenient regulatory rules than others, it is still worth exploring the laws in the country you’re moving to, to be fully compliant. This creates a fairer business model and market, stating your credibility in a brand-new country. You need to understand specific requirements that apply to your business, whether this is enforced by the country or in trade agreements. All employees coming with you will need valid visas, and you should maintain detailed records of your global expansion efforts.
Tax is a vital business obligation, and if not complied with, can lead to significant sanctions. You should attempt to identify any local or international tax laws that exist to ensure compliance. Being compliant both in tax and in law can be a tricky climate to understand. A successful professional employer organisation (PEO) can help you keep on top of tax, visas and labour laws. Our services here at Payroll Worldwide apply to Latin America, so if you need help with global payroll compliance and other legal necessities, please visit our services page here.
Once you have created a business plan, done your research and thought about the various laws that you need to adhere to, you should start thinking about your budget. It needs to be proactive yet reasonable, and keep in mind all expenses you believe you will have to pay. Budgets are never set in stone, and frequently change, but you can make a good estimate. At each quarter when expanding, check in with the budget to see if any changes need making. This will give you a greater view of your financials and help you keep on track.
You can turn to a PEO to reduce your expansion costs and create a much more reliable budget. PEOs can reduce your expansion costs, giving you peace of mind and providing cost-effective solutions. Although this is a strategy to refer to, all global expansion plans are different and will need adapting.
How We Can Help
Here at Payroll Worldwide, we’re dedicated to providing expert services to companies in Latin America and those wishing to expand. By following a step-by-step expansion plan, you can reduce stress and feel more organised, leading to better operations in business.
To find out more, or to receive a free consultation, please give us a call on 07469 892524. Alternatively, you can fill out our online form here.