After months of lengthy lockdowns around the world, the ‘red list’ is finally starting to dwindle. At long last, we’re beginning to see the world open up again following over 18 months of strict travel restrictions, and people are relishing in jetting off to catch some well-needed sunshine.
And this renewed freedom doesn’t just apply to holidaymakers!
Businesses are also looking to reintroduce the concept of not only international travel — but international expansion, too. In our globalised world, expansion is becoming an increasingly viable (and even sensible) option. Expanding your business gives you access to new markets and allows you to inject your company with fresh talent from all over the world. Coupled with an opportunity to diversify your business, global expansion is a fantastic way to gain a competitive edge in your industry.
With more and more locations opening for travel each week, many organisations are starting to embark on their expansion journeys with confidence. But although borders are opening up again, branching out into new markets is still not without its challenges…
A handful of hurdles
One of the most obvious barriers to international expansion is language. Entering a new territory where the dominant language differs from your business’ home country means you’ll need to launch your products and services in a new language, translating your offering so that it makes sense to your new market but also so that it aligns with the norms and customs of the local culture.
Traditionally, branching into overseas territories would also mean having to establish a foreign entity in the chosen location (and undertaking all the due diligence that comes with it to ensure you’re compliant with the country-specific regulations). From setting up a bank account to nuanced employment laws, complex tax regulations and various other compliance issues, expanding into new markets can be a minefield.
Of course, global expansion means hiring local talent in the new country, too. There are many regulatory and cost hurdles associated with employing international workers — from dealing with payroll, taxes, visa and sponsorship applications to benefits and insurance. Every country (and some regions or states) has its own employment, payroll and work permit requirements for non-resident companies. And even for the savviest businesses, the challenge of meeting those rules can be a major obstacle to expanding into new markets.
Breaking down those barriers
So, with so many potential hurdles in place, what’s the best way to get over them? The key to successful international expansion is working with a global employer of record (EOR).
An EOR is a trusted expert that works closely with your business to guarantee compliance in every aspect, helping you gain a firm footing in new markets — all without having to set up a foreign entity!
Working with an EOR is one of the best ways to remove any stresses or hassle associated with growing your business, helping you break down language barriers, get your head around complex legal requirements and understand unfamiliar cultural norms.
Not only will an EOR keep you on the right side of the law, but it will also help you hire and retain the best talent and offer end-to-end advice on all areas of expanding overseas — ensuring you put your best foot forward as you step into new markets.
TopSource Worldwide provides global employer of record services for businesses looking to expand internationally. Get in touch today and find out how we can make your global expansion a seamless and successful process.