Factors to Consider When Deciding on an International Expansion Location

International expansion can help your business generate more revenue and gain market exposure. However, your success depends on choosing the ideal international expansion location. With so many countries available for international business expansion, how do you know which offer the best opportunities?

Companies should consider the following factors when developing their business expansion strategy. 

Business Needs 

Succeeding abroad requires the same sound business practices and analysis as creating a highly-profitable business at home. First, business owners need to analyze their current capabilities to develop a strategy

Have you established short and long-term goals to measure your success? Does your company have the financial resources it needs to accomplish its goals? Have you analyzed the competition and pinpointed the products and services you want to sell in the new territory? Is your current management capable of handling additional burdens? Do you have the technology needed for global expansion? Do your business policies and practices align with the needs of the new market area? 

Even if your company’s current structure, technologies, policies, and procedures aren’t ready for the challenge of international expansion, your business can overcome these barriers. Rely on a seasoned international expansion partner. They have the resources you need. 

Country Viability 

With 195 countries to consider, it can seem impossible to decide which location best suits your company. However, many won’t suit your business needs or don’t encourage foreign investment. 

Additionally, many countries are politically or economically unstable. Others are fraught with regulatory complexity or deeply tax foreign companies. Start by creating a shortlist of countries and whether they offer easy access to your market.  

Eliminate poor choices and then proceed to a more in-depth analysis. Compile and rank data on market size, GDP growth, and level of competition in the area. Market analysis is a crucial component of wise business decisions. 

Work with an experienced international expansion partner once you reach this point. They can answer your questions, provide market entry strategies, and help you decide which country is most suitable. 

If your business exports goods, an international expansion partner may suggest a country with an export processing zone. Operating in these areas can lead to significantly lower transportation costs and quicker inspections and clearance. They can also explain how an international free trade zone or free trade center can help your business. 

An international expansion expert also provides a wide range of services. These include company formation, tax withholdings, payroll, immigration, and currency exchange.  

Legal Footprint 

Companies that want to establish a permanent presence in a new country need to choose the right entity type for maximum tax and business incentives. However, every country offers different entities and setting up a company isn’t always a straightforward process. Some regions also require a business license. 

Companies expanding internationally need an experienced advisor on their side. They simplify the set up process and protect your interests. 

In some cases, a business may want to test the waters before they commit legally. Fortunately, a good international expansion partner can also act as the employer of record so you can step into your new territory without legal commitment. They hire on your behalf, and manage compliance, written contracts, and performance. 

Talent Pool 

Even if a country offers attractive tax and business benefits, you still need to find talented employees. Unfortunately, without in-country assistance it can be difficult to know where to look and what to avoid. 

Nailing down candidates with the best credentials and experience is crucial to international expansion success. Luckily, a global expansion expert has the connections and experience to find top-notch workers quickly. 

Cultural Differences 

Recognizing cultural difference in a new territory is extremely important for international expansion success. Your product or service must meet the needs of the local consumer. Plus, your company and employees need to blend into the local community. 

International business expansion often involves operating in another language. Additionally, each region adheres to specific cultural and business norms essential to business success. 

Luckily, any company can meet these cultural challenges when they connect with a highly-experienced global expansion leader. In-country experts understand the local community, speak the language, and represent your company well. 

International Expansion Compliance Requirements 

The laws and regulations pertaining to business vary widely in each nation as does the complexity. Nonetheless, your business must comply with tax and customs laws, import and export restrictions, and corporate and liability laws. These laws and regulations impact the cost of market penetration and non-compliance can lead to many unwanted outcomes.  

Additionally, the regulatory landscape always changes. These changes may affect your business activity, profits, and your company’s optimal business structure. Unfortunately, few companies have the time to monitor these changes or the in-depth knowledge needed to properly adapt. 

Outsourcing is often the best solution since your global partner can handle payroll, withholding, and tax compliance. They monitor legislative changes, and you focus on growing your business. 

Operational Logistics 

Your company needs to consider what it will take to operate your business overseas. Do you need a physical office or a warehouse for storing goods? What about equipment, transportation, and materials? Will you ship goods within the country or beyond borders? 

An international business expansion leader can help your company identify needs and suggest solutions. They can also help your company avoid potential barriers to target the most direct route to your goals. 

If you operate a manufacturing or production business, they can also ensure the nearness of raw materials to cut transportation costs. 

Supply Chain 

An experienced international business partner can also decentralize your supply chain so your business remains flexible overcomes issues as they crop up.  

A steady supply chain is vital to business operations abroad as it improves efficiency, effectiveness, and customer satisfaction. Additionally, it optimizes costs, minimizes working capital, and mitigates risk. 


Blueback Global is your international business expansion expert. We offer international business expansion advice and services. These include business set up, global payroll, accounting and reporting, statutory compliance, immigration support, recruitment and hiring, and more.  

With a network of global professionals each with regional knowledge and local business savvy, we simplify global expansion. We’re well-positioned, highly-experienced, and can help you overcome your multinational business challenges.  

Contact us for a free consultation and cut through the complications of global expansion.