How to Take a Company Global
Many business owners have a dream of one day taking their product or service to the global market. Taking your company global is an arduous and costly task. It takes years to build your business financially and in the national market before expanding overseas. But, when the time comes, a global expansion can be well worth the wait. Follow the steps below and you will be well on your way to seeing your product or service all over the world.
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Instructions
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Guard your idea, which requires more than a US Patent. First, file your idea under the Patent Cooperative Treaty (see Resources below), which protects your right to patent an idea in other countries for up to 30 months. Then test your product in various global markets before moving on.
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Determine where your product will be the most successful and then file a patent in those particular countries before you even talk to a local businessperson about investing in your company (see Resources below). This provides the best means of protection from theft of your idea.
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Hire an attorney in the country your company expands to in order to help you deal with foreign currencies and other legal issues. Stick to American funds where possible, but, if you must deal with foreign currencies, look into using a bank in that country as well.
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Recognize and adapt to cultural differences. For example, the Chinese focus on the trust established through relationships outside of business. Russians, on the other hand, aren't as trusting and determine the strength of a business relationship based upon how long term it is.
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Know the hidden costs of expanding your business overseas. While it may be cheaper on the surface to outsource your business to a foreign country, many countries require you, as the business owner, to provide mandatory vacation pay and bonuses to your employees. Fortunately, most countries provide universal health care for their employees.
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Be aware of the labor laws in the countries you wish to branch into. While employers in the United States have complete control, many other countries, such as South America, require employers to consult with employee representatives before relocating the plant, discounting the price of the product or conducting layoffs.
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Diversify your global network. Do business with those who have different ideas to expand your access to knowledge, information and resources.
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