Entering the Global Marketplace? 6 Challenges to Prepare For

When a business achieves the size and resources to go global, it’s an exciting time. Reaching into fresh markets can bring not only more sales, but also opportunities for exciting new partnerships and even expansion. However, taking your business global also comes with unique and complex challenges, and venturing into international markets without proper preparation can lead to legal issues, cultural missteps, wasted opportunities and even brand damage.

Showing new customers and partners that you’ve taken the time to understand and adapt to the circumstances and nuances of their economy and culture builds trust and can help ensure your new global initiatives are built on firm foundations. Below, experienced industry leaders from Business Journals Leadership Trust share some of the key issues to be aware of when engaging in international business ventures for the first time. Read on to prepare your team to successfully navigate the global marketplace.

1. Cultural differences

Make sure you connect with in-market consultants who can assist you with cultural considerations, partner with good translation services (if needed), and have access to compliance resources if they are relevant to your business. Having in-market expert advice is invaluable. – Michelle Ottey, CIC Labs + Innovation Campus

2. Diverse regulatory landscapes

Navigating diverse regulatory landscapes can be challenging for businesses, whether they’re moving abroad or coming back home, as each country has unique requirements. Leaders should invest in flexible systems that can be adjusted in an agile manner and strive to work with local experts to ensure ongoing compliance, minimize risk and inform strategic decisions. – Bill Rokos, Parsec Automation

3. New legal and compliance risks

Expansion is exciting, but doing business in a new jurisdiction means you’ll have new legal and compliance risks. A business can prepare by assessing those risks and developing ways to mitigate them before moving into any new country. Establish the partners you will need ahead of time, whether that is local legal counsel, consultants or others who are familiar with the risks that sabotage success. – Amy McDougal, CLEAResources, LLC

4. Intellectual property protection

Protecting your intellectual property globally presents challenges due to varying patent laws and enforcement levels across countries. To address this, prioritize securing your IP in key markets, leverage international treaties and establish both a process for monitoring your IP and enforcement strategies for IP infringement. – Quentin Pell, Q5 Advisory

5. Unfamiliar situations and expectations

Understand the communication and cultural differences in the geographies you plan to operate in. Have a plan for dealing with unusual or unethical expectations. If a foreign business is worth millions, consider hiring experts to advise you on how to strategically and sensitively handle unfamiliar or unexpected situations. – Zain Jaffer, Zain Ventures

6. Varying legal systems

Navigating diverse legal systems is a key issue when entering the global marketplace. To prepare, consult with local legal experts to understand the regulations, create a flexible compliance strategy and cultivate good relationships with local authorities. These steps will help leaders effectively manage the complexities of global transactions, reduce risks and lay the groundwork for success. – Cody McLain, ATX Backyard Studio