Challenges of an Expansion

Opening the business, finding the right partners, processing all customs paperwork, complying with regulatory requirements, or conducting hiring procedures are just a few of the challenges of expansion.

1. How to initiate an expansion

Companies operating in today’s economic environment need to establish an international presence in the marketplace. This, of course, means you start outsourcing or nearshoring, or you take initiative and start an independent expansion by yourself in another country.

However, running an international business with operations in more than one country should not be underestimated and it will take a lot of effort to communicate with employees thousands of kilometers away. Though it can be done successfully with support from us from Mexpansion as we will assist you in managing your company locally. We have listed a few things you need to keep in mind when starting a business in a foreign country.

We will be on set for you in Mexico and with our network we help you to overcome language barriers, help you to get to know the culture, advise you in the supply chain and build up the company together.

1. How to initiate an expansion

We will be on set for you in Mexico and with our network we help you to overcome language barriers, help you to get to know the culture, advise you in the supply chain and build up the company together.

Companies operating in today’s economic environment need to establish an international presence in the marketplace. This, of course, means you start outsourcing or nearshoring, or you take initiative and start an independent expansion by yourself in another country.

However, running an international business with operations in more than one country should not be underestimated and it will take a lot of effort to communicate with employees thousands of kilometers away. Though it can be done successfully with support from us from Mexpansion as we will assist you in managing your company locally. We have listed a few things you need to keep in mind when starting a business in a foreign country.

2. Network, partners, and knowledge of the country

 

We would like to leverage the relationships we have and help you in all the mentioned aspects below to execute your expansion successfully. For example, if you don´t speak Spanish, but are heavily pushing a product or service in Mexico, we will call on our network to get your message out. You do not want to have your products seized or your operations shut down due to some miscommunication or misunderstanding with local government officials. A local agent, or sometimes an attorney or accountant experienced in international law, can be invaluable when establishing a physical presence in a new country.

We will help you to ensure full compliance in every aspect of your local business, whether it is in terms of finance, reporting, taxes, legal questions, banking, or labor and trade laws. Recruitment, especially, is a major consideration and a big challenge.

Without a network, partners, or knowledge of the country it is hard to execute an expansion. A critical factor is the need for local representation when starting a business in a foreign country to guide you around the potential problems and misunderstandings. More importantly, we will help you to ensure full compliance in every aspect of your local business, whether it is in terms of finance, reporting, taxes, legal questions, banking, or labor and trade laws. Recruitment, especially, is a major consideration and a big challenge.

2. Network, partners, and knowledge of the country

We would like to leverage the relationships we have and help you in all the mentioned aspects below to execute your expansion successfully. For example, if you don´t speak Spanish, but are heavily pushing a product or service in Mexico, we will call on our network to get your message out. You do not want to have your products seized or your operations shut down due to some miscommunication or misunderstanding with local government officials. A local agent, or sometimes an attorney or accountant experienced in international law, can be invaluable when establishing a physical presence in a new country.

We will help you to ensure full compliance in every aspect of your local business, whether it is in terms of finance, reporting, taxes, legal questions, banking, or labor and trade laws. Recruitment, especially, is a major consideration and a big challenge.

Without a network, partners, or knowledge of the country it is hard to execute an expansion. A critical factor is the need for local representation when starting a business in a foreign country to guide you around the potential problems and misunderstandings. More importantly, we will help you to ensure full compliance in every aspect of your local business, whether it is in terms of finance, reporting, taxes, legal questions, banking, or labor and trade laws. Recruitment, especially, is a major consideration and a big challenge.

3. Language barrier and different time zone

communication problem because of the language

Communication is key. It is already tough enough to manage your own employees on your site, it will be even more difficult when they are miles away and maybe even in another time zone. In addition, if they speak a different language than you do this will not make it easier at all.

Their workday might just start when yours is over, thus meetings must be taken at different times. To effectively manage their operations overseas, you need an ongoing, open dialogue and speak to them at least once if not twice or three times a week.

3. Language barrier and different time zone

communication problem because of the language

Communication is key. It is already tough enough to manage your own employees on your site, it will be even more difficult when they are miles away and maybe even in another time zone. In addition, if they speak a different language than you do this will not make it easier at all.

Their workday might just start when yours is over, thus meetings must be taken at different times. To effectively manage their operations overseas, you need an ongoing, open dialogue and speak to them at least once if not twice or three times a week.

4. How to keep control with thousands of kilometers of distance

Even though there is a huge distance, modern technology is widely available all over the world and will help a lot to overcome the distance. Shared workplaces, shared technology, and cloud storage will make working remotely a seamless process. This advantage enables us to work more internationally as an organization. A global expansion of companies likewise prompts further evolution of existing technology.

For instance, Google Hangouts and Microsoft Teams enables colleagues to have a face-to-face interaction plus the ability to share documents and create presentations across different offices. With the right technology it can be a smooth process. However, it will never replace face to face meetings completely.

You might be worried about or even object to the fact that you will need to send over technicians every month to train employees or fix problems on machines, processes, or other things.

However, with the latest technology such as Google 3D glasses you will be enabled to guide your local workforce to solve issues.

Google Hangouts and Microsoft Teams enables colleagues to have a face-to-face interaction plus the ability to share documents and create presentations across different offices - but it will not replace the face to face meetings.

4. How to keep control with thousands of kilometers of distance

Google Hangouts and Microsoft Teams enables colleagues to have a face-to-face interaction plus the ability to share documents and create presentations across different offices - but it will not replace the face to face meetings.

Even though there is a huge distance, modern technology is widely available all over the world and will help a lot to overcome the distance. Shared workplaces, shared technology, and cloud storage will make working remotely a seamless process. This advantage enables us to work more internationally as an organization. A global expansion of companies likewise prompts further evolution of existing technology.

For instance, Google Hangouts and Microsoft Teams enables colleagues to have a face-to-face interaction plus the ability to share documents and create presentations across different offices. With the right technology it can be a smooth process. However, it will never replace face to face meetings completely.

You might be worried about or even object to the fact that you will need to send over technicians every month to train employees or fix problems on machines, processes, or other things.

However, with the latest technology such as Google 3D glasses you will be enabled to guide your local workforce to solve issues.

5. Cultural differences must be taken into consideration

In some countries, religious customs may affect how and when business is conducted - we help you to understand the Mexican culture and how to get along with people.

understand the values and culture

Working with and among international and global business leaders and companies opens a completely new business perspective.

However, it also comes with challenges, as cultures vary based on region, country, religion, and more. In addition to a possible language barrier there are a lot of cultural behaviors, attitudes, and sensitivities that can affect your business.

For these reasons you should consider employing a cross-cultural business consultant until you and your people feel confident enough to understand the nuances of communication.

Remember that something as simple as a handshake may have a significance that you do not understand. In some countries, religious customs may affect how and when business is conducted. It is no accident that locals appreciate it when you make the effort to work with them in their “language” – be that in words, gestures, culture, gesticulations, feedback, commentary, conflict, or anything else.

People work together differently in every country - in Mexico for example, people tend not to say "No" to a deadline even though they know they can not accomplish the task.

In Asia, for example, employees tend to avoid asking their managers questions and are more indirect in sharing their feedback and concerns. On the other hand, European teams ask a lot more questions and report back to their management team.

To give some more examples in American culture and schools you are rewarded for speaking up and for sharing your opinions and ideas, even if you do not necessarily have new insights to add. In British culture, people are more introverted and quieter with their opinions in groups and prefer to give feedback more openly in smaller groups or 1:1.

One solution could be to standardize operating procedures across cultures, and on top to train staff to communicate performance feedback differently because some cultures are proud and steeped in their tradition, so all issues need to be addressed carefully and diplomatically.

5. Cultural differences must be taken into consideration

In some countries, religious customs may affect how and when business is conducted - we help you to understand the Mexican culture and how to get along with people.

understand the values and culture

Working with and among international and global business leaders and companies opens a completely new business perspective.

However, it also comes with challenges, as cultures vary based on region, country, religion, and more. In addition to a possible language barrier there are a lot of cultural behaviors, attitudes, and sensitivities that can affect your business.

For these reasons you should consider employing a cross-cultural business consultant until you and your people feel confident enough to understand the nuances of communication.

Remember that something as simple as a handshake may have a significance that you do not understand. In some countries, religious customs may affect how and when business is conducted. It is no accident that locals appreciate it when you make the effort to work with them in their “language” – be that in words, gestures, culture, gesticulations, feedback, commentary, conflict, or anything else.

People work together differently in every country - in Mexico for example, people tend not to say "No" to a deadline even though they know they can not accomplish the task.

In Asia, for example, employees tend to avoid asking their managers questions and are more indirect in sharing their feedback and concerns. On the other hand, European teams ask a lot more questions and report back to their management team.

To give some more examples in American culture and schools you are rewarded for speaking up and for sharing your opinions and ideas, even if you do not necessarily have new insights to add. In British culture, people are more introverted and quieter with their opinions in groups and prefer to give feedback more openly in smaller groups or 1:1.

One solution could be to standardize operating procedures across cultures, and on top to train staff to communicate performance feedback differently because some cultures are proud and steeped in their tradition, so all issues need to be addressed carefully and diplomatically.

you want to know how we will overcome your challenges in an expansion process?

Get in touch with us and we will analyse together what solutions we can offer for your your challenges!

Contact Us

you want to know how we will overcome your challenges in an expansion process?

Get in touch with us and we will analyse together what solutions we can offer for your your challenges!

Contact Us

6. Regulatory climate and political stability

Every country has its own version of immigration, financial, taxation, and employment law. If your company requires the import or export of goods, you will need to check out any restrictions on the products being moved and the costs associated with their movement.

If you plan to start your new business in a country that is rapidly evolving -politically or economically- you must limit your financial exposure and personal risk until you are confident that you understand the environment - we help you to do that locally.

Political turmoil is becoming more common throughout the world, especially in countries with high unemployment rates and dictator regimes, in which there is no freedom of speech. While there are great rewards in most turbulent environments, there is also great risk. If you plan to start your new business in a country that is rapidly evolving -politically or economically- you must limit your financial exposure and personal risk until you are confident that you understand the environment and can cope with potential changes appropriately. We will analyze all factors together and advice you on political questions.

6. Regulatory climate and political stability

Every country has its own version of immigration, financial, taxation, and employment law. If your company requires the import or export of goods, you will need to check out any restrictions on the products being moved and the costs associated with their movement.

If you plan to start your new business in a country that is rapidly evolving -politically or economically- you must limit your financial exposure and personal risk until you are confident that you understand the environment - we help you to do that locally.

Political turmoil is becoming more common throughout the world, especially in countries with high unemployment rates and dictator regimes, in which there is no freedom of speech. While there are great rewards in most turbulent environments, there is also great risk. If you plan to start your new business in a country that is rapidly evolving -politically or economically- you must limit your financial exposure and personal risk until you are confident that you understand the environment and can cope with potential changes appropriately. We will analyze all factors together and advice you on political questions.

7. Establish an international banking relationship

If you anticipate exporting or importing goods from or to a country, you must be aware of currency differences and undertake measures to eliminate exchange risk where possible. This requires that you remain aware of constantly changing exchange rates.

The foreign exchange market can be extremely volatile, and, if you do not pay attention, your revenues can quickly decrease as money is converted between currencies.

In many cases, you are charged exorbitant fees and must wait several days for the money to clear and to become available in your account.

The foreign exchange market can be extremely volatile or you have to pay exorbitant fees until the money is available - we ensure with our banking partners a smooth process.

7. Establish an international banking relationship

The foreign exchange market can be extremely volatile or you have to pay exorbitant fees until the money is available - we ensure with our banking partners a smooth process.

If you anticipate exporting or importing goods from or to a country, you must be aware of currency differences and undertake measures to eliminate exchange risk where possible. This requires that you remain aware of constantly changing exchange rates.

The foreign exchange market can be extremely volatile, and, if you do not pay attention, your revenues can quickly decrease as money is converted between currencies.

In many cases, you are charged exorbitant fees and must wait several days for the money to clear and to become available in your account.

8. Local Laws

With our local law partners, we ensure you to be compliant with the Mexican laws - in terms of regulations, business, employees, and other important legal questions.

the labor law in mexico

Whatever country you expand to, it is essential to know the local laws because consequences can be disastrous if you run afoul of compliance. Knowing about local laws refers to more than just signing contracts.

Every country has a lot of unique rules that you would never think about. For example, all new employees have to be sent to the doctor´s on their first day of work to get a health check.

There are so many things to consider when establishing a legal business – for example, a lot of rules around how you can hire employees. In addition, you need to make sure to be in compliance with myriads of employment laws and all types of filings and other bureaucratic issues.

In the end, you only want to follow the letter of the law and make sure that you got off on the right foot and that you do not have any sort of regulatory issues.

8. Local Laws

With our local law partners, we ensure you to be compliant with the Mexican laws - in terms of regulations, business, employees, and other important legal questions.

the labor law in mexico

Whatever country you expand to, it is essential to know the local laws because consequences can be disastrous if you run afoul of compliance. Knowing about local laws refers to more than just signing contracts.

Every country has a lot of unique rules that you would never think about. For example, all new employees have to be sent to the doctor´s on their first day of work to get a health check.

There are so many things to consider when establishing a legal business – for example, a lot of rules around how you can hire employees. In addition, you need to make sure to be in compliance with myriads of employment laws and all types of filings and other bureaucratic issues.

In the end, you only want to follow the letter of the law and make sure that you got off on the right foot and that you do not have any sort of regulatory issues.

9. Invest research into the local infrastructure

Even where movement of goods is not physically restricted, many countries lack the infrastructure that exists in industrialized countries. In addition, regulations can affect the free flow of products within and outside of the country as well as fees, duties, and export taxes.

warehouse and infrastructure

9. Invest research into the local infrastructure

warehouse and infrastructure

Even where movement of goods is not physically restricted, many countries lack the infrastructure that exists in industrialized countries. In addition, regulations can affect the free flow of products within and outside of the country as well as fees, duties, and export taxes.

10. Involve Expats and locals

Someone who is familiar with the country can serve as a cultural consultant. We are familiar with the country and will support your company in making the most of your opportunities. So, for example, to understand the various cultural, bureaucratic, and logistical differences between Europe and Mexico and how they need to be applied right on the site. Also, in targeting the market much more effectively and profitably.

We are familiar with the country and will support your company in making the most of your opportunities.

The best strategy for recruiting is to find a local partner who understands the landscape, including wages, labor laws, and a typical office environment.

We will help navigate everything from renting office space to contract norms for employees. Also, regarding the law firms since there are many rules and regulations, to which you just must play by.

 

10. Involve Expats and locals

Someone who is familiar with the country can serve as a cultural consultant. We are familiar with the country and will support your company in making the most of your opportunities. So, for example, to understand the various cultural, bureaucratic, and logistical differences between Europe and Mexico and how they need to be applied right on the site. Also, in targeting the market much more effectively and profitably.

We are familiar with the country and will support your company in making the most of your opportunities.

The best strategy for recruiting is to find a local partner who understands the landscape, including wages, labor laws, and a typical office environment.

We will help navigate everything from renting office space to contract norms for employees. Also, regarding the law firms since there are many rules and regulations, to which you just must play by.