South Africa is packed with entrepreneurs with the gees to get things done, and get them done well.

If you’re one of those business owners, and you’re killing it, you’ve probably put some thought into moving your product overseas.

As you take those first crucial steps towards world domination and international trading, there are a lot of variables to consider.

From customers to time frame, and right through to logistics, Trade Gecko looked into the five top challenges of international expansion, so that you can get ahead of the game as you rise to new heights.

Take notes, budding exporters.

Language Barriers

It’s one of those obvious things that you might not have given much thought, but if you don’t speak the same language as your intended customers, you could run into some issues.

You’re going to need to expand your team so that at least one person on staff speaks the local language. You should also take note of the confusion that can arise between two countries that speak the same language. For example, the humble South African ‘flip flop’ is called a ‘thong’ in the US and Australia.

Local Competition

You might be killing it with your product in South Africa, but someone else could be killing it with that same product in the country where you plan on expanding your business.

That’s obviously going to put you at a disadvantage, so you’ll want to do some serious market research before investing in expansion.

Shipping and Logistics

This is a big one, so pay attention.

If you expand into new territories, you’re going to have to come to terms with the headache that is imports, exports, shipping, and logistics.

Managing a supply chain that crosses national boundaries can be a real challenge. What if your goods are delayed, or don’t show up at all? What if your goods are impounded by customs?

Finding the right shipping partner can make all the difference.

Berry & Donaldson, one of South Africa’s largest private-owned logistics companies has been helping South African importers and exporters navigate the labyrinth that is international shipping for over half a century.

They’ll take care of everything, leaving you to focus on the important stuff – like growing your business.

Tax Codes and Compliance Issues

Dealing with tax can be a bit of a headache – almost as much of a headache as international shipping.

Dealing with fees, trade tariffs and taxes for international trade can be a major obstacle for companies venturing into international expansion.

You’ll need to do your due diligence to make sure that you’re compliant. It’s worth getting an expert involved to ensure that all the checks and balances are in place.

Developing a Strategy, Business Plan and Budget

The worst thing you can do before expanding your business to new shores is to neglect proper planning. Before rushing ahead, sit down and make sure that you’ve covered all of your bases.

Remain open to new ideas, and different points of view and your business will be able to connect with customers and partners in your target nation.

Now all that’s left to do, is to go forth and conquer.

Send us a postcard from the other side.

[source:tradegecko]