When companies expand globally, they do not fully consider the implications that come with it. When they hire individual international contractors, it may seem like a straightforward process, but they need to make sure they are compliant in their operations. Companies need to protect their intellectual property (IP) in foreign countries, consider all requirements, costs, and challenges that come with setting up a foreign entity. Companies need to be compliant in each country they start doing business in and at the same time create the perfect strategy to help them expand their business and get the best return on investment.
The Modern-Day Playbook for Global ExpansionBusinesses are going global and innovation is prized above everything else. Businesses stay relevant in this environment when they stay agile.
What is Agile?The Agile methodology was created to help companies cope with the constantly evolving needs of their consumers and the ever-growing markets in which they conduct business. The idea behind being agile is to get companies to do their work in incremental sprints, with a short timeline created, as compared to delivering a bug piece immediately without any tests run during the entire process of creation. The agile approach creates a continuous learning cycle which converts ideas into products, checks them for efficiency and assesses growth from experience. All adjustments needed can be done before they begin the next cycle.
Why are Companies Going the Agile Way?The business environment today can be described as volatile and competitive to say the least. Companies can only succeed if they are adaptive and flexible with their processes. Agile applies to global expansion as well because it believes that companies do not need to invest a large amount of time and money if they want to set up a foreign subsidiary, especially if it is just to test the company's potential in a new market, or pioneer a unique opportunity. A better solution would be to create a small team in-country as soon as possible so that they can test the market and evaluate the country's potential for a long-term commitment. If the team works well and the experiment is a success, only then the company should consider setting up a foreign entity in the market, which might not always be the right choice because the newer and modern expansion methods can help achieve the same goal throughout the time they want to conduct business in the country.
- Agile methods help companies keep up in today's fast paced business world
- Companies work in short periods of time to help them analyze, grow and improve their product or service before starting the next cycle
- Following the agile methodology for global expansion will help in evaluating if the new market is a good suit for the company and help them understand what works and does not in the new environment