In the words of Nick Smith, Director at Rotherham Taylor: “No business goes global on its own.”

While successful international expansion depends significantly on the growth potential of a business and the dedication of its people, what we mean by this is that, behind a global business sits a network of support for navigating the complex financial and legal landscapes of multi-jurisdictional business operations.

Nick summarised their views on the subject with: “When supporting business owners with international expansion, we always look at whether they are financially ready, the support they will need and ways that we can support with funding and operational efficiency.”

Understanding the local landscape

International expansion is typically part of a wider growth strategy for business clients, which requires significant planning to achieve.

This is where business advisory comes into its own, as a business must take a holistic view of the requirements it needs to meet before it can successfully operate on an international scale, including:

  • Regulatory compliance – Each jurisdiction will have its own regulations on trading, imports and exports, tax and employment law, which should be addressed by a local expert.
  • Financial planning – In our experience, international expansion can unlock almost limitless growth potential, but usually carries a higher overall cost than planned, as with many major projects.
  • Logistics – Operational adjustments are inextricably tied to the good financial health of a business, from finding reliable, fair local suppliers to onboarding the right talent.
  • Understanding the market – While you’ll already know your target market from pre-planning, bringing this information to the table when discussing with your advisory team is essential to plan your financial approach properly.

“Until a business has fully considered all of these issues and put the right protections in place, then expanding internationally will remain a goal, rather than an achievement,” said Nick.

“As accountants, the financial considerations of expansion into a global market are our primary concern.”

“We know that cost is a major dictator of whether a business is ready and able to expand internationally – including the cost of registration and incorporation, recruitment, infrastructure and communications and logistical costs of delivering goods or services.”

Is expansion right for you?

“The other role that your advisory team can play is helping you to understand the goals that motivate your desire to expand internationally.”

This includes identifying:

  • What your goals are and how they are incorporated into your business strategy
  • How you plan to achieve this with an international expansion
  • When you are planning to reach your goals
  • Why you think these are the right goals for your business.

“Whether this be tapping into a new market or competing with an established local competitor, it is important to understand this driving force, as it could open the door to new opportunities at home and abroad.”

In our experience, working with a client’s management team in a business advisory capacity often helps us to identify additional points of expansion, and not just overseas.

For example, if a client wants to tap into a new market, this may provide an insight into additional markets available to them in the UK.

“Ultimately,” said Nick, “expansion on an international scale is about bringing your unique offering to a new market and achieving growth goals through this. It forms a unique connection between your business and like-minded people across the globe whose needs you are addressing in a way that no other business can.”

To speak to a member of the team, please contact us today and discuss your requirements.