Despite this, global expansion is slowly returning to the C-suite agenda, with over half of Britain’s medium-sized companies planning to invest millions in international growth over the next five years and 47% of UK companies viewing international trade as vital to their long-term success.

By embracing global markets, these businesses are not only opening doors to new customers but are also boosting competitiveness, expanding revenue streams, and reducing risk. But, the timing of expansion is key. Achieving success internationally requires a strategic approach that aligns with local market demands and regulations, along with a finance system that can scale effectively as the business pushes outside of its current borders.

Customise strategies to align with local specifics

Many businesses looking to expand often rely on the strategies that propelled growth in their home market. But to succeed in new markets, businesses must master the art of differentiation and tailor their strategies to address country-specific needs. For example, what works in the UK might not necessarily align to customer needs in another country; it’s not a one-size-fits-all approach.

At the heart of successful international expansion is a deep understanding of the new market’s unique environment. Companies should invest in rigorous market research to explore customer preferences, attitudes, competition and cultural nuances. By identifying local mindsets, competitors and understanding consumer pain points, businesses can shape their packaging, messaging, and offerings to address their needs better and deliver relevant, compelling, and distinctive value.

In addition to market fit, understanding local legal and regulatory frameworks is crucial. From tax compliance to data privacy laws, each country’s requirements can impact a business’ operations. Adapting to these requirements proactively helps show to potential customers and partners that the market is understood, establishing authority and trust.

Meanwhile, leveraging data can help businesses pinpoint the best markets for expansion and help them make informed decisions about where to focus efforts on which products. Let the demand the business has experienced in each country inform its international growth plans. It helps to understand which markets have the most pain points that the business solves well, and de-risks any investment bets.

Get the talent equation right with local expertise

Successful international expansion hinges on more than just a solid business plan; it requires a team that intimately understands the market. Hiring employees with deep regional knowledge provides insights and helps navigate the complexities of local customs, regulations and customer expectations. These employees serve as cultural and operational bridges, ensuring that the business aligns with the region's unique dynamics while maintaining the company’s core values. The initial team hired will also shape the local office culture, so select talent thoughtfully. Done right, international divisions can infuse the entire business with fresh ideas and innovation.

In addition, thriving in other regions requires local relationships and to establish connections with alliances partners, suppliers or distributors, as well as regulatory bodies to acquire a local licence. Having people who can speak the language, understand the business customs and navigate local regulations not only builds credibility, but will also establish the business as a well-respected player within the community.

Hiring local talent is not just beneficial for immediate growth, but is also a long-term investment in market resilience and stability. By cultivating a team that understands and embraces the local market ensures sustainable growth, builds a positive culture and creates a lasting foothold in the region.

Establish scalable payments infrastructure

For businesses planning international growth, ensuring scalable payment processes is crucial. Global expansion adds complexities to supplier payments, like tax compliance, cross-border payments, currency exchange, and regional banking standards. Furthermore, if the business has a multi-subsidiary structure across regions, it will need to plan for distinct spend approval workflows, regional fraud controls, and payment reconciliation and financial reporting challenges.

If the supplier payment process can’t nimbly respond to these factors, the business will have to manually adjust its supplier payment process to each vendor’s situation. Simply put, the accounts payable workflow won’t thrive on a global scale.

To combat these challenges, technology – specifically automation – can be utilised to help streamline and automate global payments.

For example, it’s possible for accounts payable to have a one-size-fits-all onboarding process for domestic and international suppliers. An automated self-service portal lets suppliers input payment and currency preferences and tax details directly into a company’s accounts payable system, enabling AP automation to handle tax and payment processes efficiently and compliantly. For companies with high volumes of international suppliers, this setup ensures AP can manage demand effectively and make timely payments.

The path forward towards global expansion

Even when a business feels prepared for global expansion, the process demands patience and precision. In a rapidly changing and challenging economic landscape, timing is crucial. Success hinges on thorough planning and careful consideration, ensuring every detail is aligned for a smooth transition. This includes evaluating the strategies that have driven success in the domestic market and adapting them to meet the unique demands of new markets. Equally important is the implementation of a scalable payment system to support seamless global financial operations. Only when these critical foundations are firmly established can a business unlock its potential for global success.

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