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The saying goes, “the world is your oyster” but be cautious that if not approached informatively, your world can turn into your disaster.   The prospect of taking your services or products abroad can be a very exciting possibility and will denote a wealth of benefits from increased sales, exposure and more opportunities.  However, with this potential expectation, always be mindful of the financial implications and aware of hidden costs when making this decision.  A lack of solid preparation can cause enormous problems for businesses looking for a good ROI on their expansion projections.  We have summarized a few pointers to reflect on during the consideration and planning phase of this exercise.

1. Compliance Issues

Thoroughly investigate the business rules and regulations of the country you are considering expanding to.  Every country has its own unique specific managing process in handling data, marketing, taxes and other key functions of a business.  Consequently, become familiar and scrutinize these legal policies to ensure you are covered for any possible associated relevant expenses.  Getting informed advice before starting this journey is imperative.

2. Expatriation Costs

When expanding globally, you would either consider hiring local talent or deploying expats to your destination.  If the local talent pool is limited and often unknown, then the usual route would be to ship out expats – but this can come with tremendous expenses.  You would need to consider things like relocation costs, housing, family, education, cultural training and transport.  Don’t neglect any tax equalization compliance-related issues which most countries have in place to cover labour regulations.

3. Cultural Changes

The legal adjustment into a foreign country is a mammoth task on its own, but then there is adapting to the country’s cultural customs that can prove to be an even bigger undertaking.  With the continuous economic changes affecting the world, regulations are constantly changing, so keeping abreast of the updates can be a daunting time-consuming task but it’s such a crucial aspect.  Both money and time need to go into accurately researching this aspect, so again consulting with professionals in this area would be invaluable.

At Experity Accounting Services, we are ready to assist and go the extra mile to ensure that all loopholes and snags are covered.  You can expect only informed, sound advice and transparent costing information throughout the process. We will ensure you are never caught in any regulatory red tape situation during your expansion aspirations.  We are on board with you throughout your journey, so why not send us an email at info@experity.co.za and let’s go grab a coffee so we can reassure you of our support and first-rate capability.