As a business grows, it is only natural for its owner to want to expand it. However, just because a company can expand, doesn’t mean you have an automatic slam-dunk. Expansions are fraught processes; many a business has sunk trying an overambitious expansion. If you are thinking about expanding overseas, here are three key steps you’ll need to take.

Do Your Due Diligence

Due diligence is a crucial step that should precede any significant business moves. Exactly what due diligence entails will depend on the action you are undertaking. Due diligence means that you have looked into the minutiae of the proposition and will be proceeding with full awareness of what you are getting into.

In the case of overseas expansion, your due diligence should involve ensuring that your business will be able to operate legally in your new market. You will need to make sure that you have all your paperwork complete, as well as any of the other routine administrative tasks that come with expansion.

Make Sure You Can Fund It Properly

Budgeting for overseas expansion is more complicated than you might think. Accurate budgeting is essential for safe growth. If you move to expand your business overseas based on an inaccurate or incomplete budget, it could be disastrous. Even if your business is healthy when you begin the process, growing is expensive, and you could end up sinking an otherwise viable business. Overextension is a genuine concern.

Find Partners

Breaking into a new market is hard, especially when it is a very different market from the one you are used to. With covid-19 in full swing, many businesses are struggling to coordinate their international operations. Not only do they have to deal with the usual logistical challenges involved, but they also have the added burden of overcoming any language and cultural barriers that exist.

The cheapest and most effective way of overcoming these challenges is by working with local partners who are already familiar with the market and the country as a whole. These people can help guide your decision, making sure that you don’t inadvertently say or do anything that might alienate your new audience.

You can hire overseas staff without having to establish a legal entity in the country. With travel restrictions widespread, this is something that lots of businesses are finding useful. Companies achieve this through the use of a PEO.

If you want to see an example of a PEO service, look here. This PEO in Malaysia from New Horizons Global Partners is a fantastic example of comprehensive PEO and EOR services that enable small businesses to expand overseas.

As long as you put together an expansion plan that incorporates all of these elements, you should have no trouble undertaking a successful overseas expansion of your business. Be aware of the dangers of overzealous expansion. If you overextend yourself, it can kill you financially. However, as long as your business is sturdy and your plans are robust, it is possible to expand overseas, even now.