Not so long ago, it was challenging and nearly impossible for businesses to expand globally. However, now, with the advent of the internet and new technologies, global expansion is no longer a distant dream.
While bringing your business to the global stage is more accessible than ever, it still has its hurdles. Being aware of potential pitfalls is the first step in ensuring the success of your expanding business. That is why in this article, you will find the top 4 challenges of internationalisation for business you need to look out for.
1. Regulatory and Legal Compliance
When expanding into markets such as the UK, the very first global expansion difficulty all businesses encounter is regulatory and legal compliance. In new markets, you have new rules, new laws, and new regulations that you must abide by. As a business entering international markets, you could face hefty fines and even jail time if you don’t comply with these laws.
For example, in the UK, you have new:
- Employment Law (such as the National Minimum Wage and Employment Rights Act 1996)
- Tax Compliance (such as corporation tax and VAT compliance)
- And Corporate Governance (such as the UK Corporate Governance Code)
Recognising the challenges of navigating new jurisdictions, Omega supports international entrepreneurs by offering third-party accounting and legal services through its platform. This ensures that entrepreneurs are just a few clicks away from expert help and advice, available 24/7.
2. Constantly Changing Landscape
Analysing the external business environment is vitally important for companies wishing to grow internationally, as it continuously changes and is influenced by a number of factors outside of business owners control. These include policies, laws, and even relationships between countries.
Take a look at Brexit, for example. The UK left the European Union back in 2020. To this day, they are still negotiating Trade Deals to lower the taxes on international imports from certain countries. That is why it is important to stay updated with latest market trends and developments and plan your business operations for a number of different scenarios.
3. Financial Risk
Alongside this, another challenge of expanding globally is managing multiple currencies, international payments and currency fluctuations, which sometimes can be difficult and even risky.
One of the biggest challenges in managing FX risk is the volatility and unpredictability of currency markets. Exchange rates typically fluctuate multiple times per day with a various degree of change.
Omega provides its users an access to real-time competitive FX rates, which allows for hassle-free international money transfers and foreign exchange payments to suppliers, partners and employees worldwide.
4. Operational Challenges
And lastly, the challenges can also arise from the operational perspective. Successful business expansion requires the utmost efficiency of management in various tasks, which can include accounting and legal compliance, local office setup, and more. Without streamlined operations in these areas, business risks inefficiencies, increased costs, slower market entry, and even worse, slower growth.
Thankfully, you can allocate all of the administrative tasks to Omega, so you can focus on what matters the most – growing and developing your business.
Omega, Your Path to Global Markets
At Omega, we understand international business challenges and we are passionate about supporting aspiring entrepreneurs, who wish to take their operations to the next level. That is why Omega Business Account is equipped with financial and administrative tools aimed at making your operations fast and efficient:
- Seamless business registration in the UK.
- European IBANs in your company’s name.
- Competitive FX rates.
- Third-party expert accounting and legal services on demand.
Turn these challenges into opportunities with Omega. Get started today and see the real difference that Omega can make.
