You’re setting your sights as high as they can go for your new business. That’s why you’ve decided to go international right off the bat. Or maybe you have a thriving company that you want to go global in the next year.
Either way, you’ll need to consider the difficulties of going global. There are some unique challenges you’ll face in your pursuit to open a business internationally.
Different countries have different governments, policies, time zones, cultures, languages, and more. It can be a lot to keep track of, especially if you’re new to it. Here are the top challenges of opening an international company to prepare you for the task.
Language Barriers
First and foremost, you’ll need to consider language barriers. Which countries are you going to do business in? Do you plan on only selling to other English-speaking countries, or do you aim to do multilingual business?
If you plan to sell in non-English speaking countries, there’s a fair bit of preparation you’ll need to do.
You’ll want to hire an interpreter as well as a native speaker and resident of each country. This person will help you hold meetings, hire new staff, and more. It’s crucial not to underestimate the language barrier issue. In the past, companies have gotten themselves into hot water because their product names meant something offensive in another language. It would be extremely beneficial to vet all your products and content with an interpreter.
Differences in Culture
Language isn’t the only thing that will be different in other countries. There will also be significant cultural differences, including unique holidays, traditions, foods, art, and social norms. You’ll need to familiarize yourself with these customs if you want to find success.
You’ll have an easier time building brand loyalty if you take the time to understand the culture of the country in which you’re selling. It will let potential customers know that you care about them and their homeland.
Differing Currencies and Inflation Rates
Each country or region you work in may use different currencies, and the value of your dollar won’t equal the value of a dollar in other countries. To avoid losing money, familiarize yourself with currency exchange rates. They will let you know how much your dollar is worth in another country. It’s imperative to keep a close eye on these rates, as they fluctuate constantly.
Different Utility Frequency Standards
If your business uses electrical equipment, this one is important. Different countries have different utility frequency standards. If you’re moving your equipment over to a country with a different standard than yours, you’ll need to use a frequency converter to convert your machines to the correct one. Otherwise, they won’t work as efficiently as they could, resulting in unnecessary costs and frustration.
Above are the top challenges of opening an international company you can expect to face. While starting a business in another country is no easy feat, if you can do it successfully, you’ll see an incredible return on your efforts.
