Taking a small business global is a complex and dynamic process that should not be taken lightly. There are many things to take into consideration before starting expansion, for example:
- Gaining a deep understanding of the targeted markets
- The competition
- Local market trends
- Investment requirements
- Legal implications
- Countries’ tax laws
- And many other requirement to successfully launch and grow your business globally.
Thus for small and emerging businesses, going global is a significant
undertaking that could disrupt your existing business activities.
Before taking the steps CEOs must understand the impacts
and accept if the reward will be better than the risks taken.
For business owners wanting to expand their brand internationally
and not willing to take that much risk of uncertainty, there is solution
called international franchising. International franchising,
basically means you license your business to local franchisees of that country
that are willing to undertake your business in his or her country.
It is a strategic way to reduce risk of the unknowns
and also expand your brand internationally.
“Extending a brand globally through franchising
involves a low risk, requires minimal investment and
offers a huge upside potential for scaling capabilities”
Also international franchising can also offer what is called
foreign master franchise owners. These individuals are natives of the country
and understand the political and bureaucratic problems in his/her country
far better than any outsider. It’s more obvious to let a native run a business dedicated to local clients.
Still Sure on starting a franchise abroad?
Here are some tips before taking the big step.
- Create a Manual. Think through the process of precisely
how your business works. Franchisees will need exact details
and guidelines to get their businesses up and running.
- Get an attorney. You’ll need an expert on the financial
and legal process, as well as protecting your brand identity.
- Be picky. Just like any friendship, you should be selective
when it comes to choosing franchisors. Choose people that believe
in your idea.
- Find mentors. Someone that will guide you through
the whole process of establishing your company.
(We have a really experienced team, check out our process timeline on
bringing your business to the USA. I want to know more )
- Build a connection. This is the time consuming part of spending
some face-to-face time with your franchisees, or lots of time online
and via phone. Encourage them and celebrate victories and milestones.
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