Three Keys to Localizing Your Business Abroad

Global expansion is the next logical step for companies that have already developed a solid footprint in the U.S., and in the current economy, companies are doing all they can to go global, fast. There are, however, several considerations a company must bear in mind. The risks of operating in multiple regions fall into two categories: not meeting the needs of distant regions and not having insight into what they are doing.

In general, prospects are unwilling to make allowances for anything they perceive to be a shortcoming. For example, if your marketing materials are in English only, this will be a significant setback to expansion, even in countries (such as the Netherlands and Denmark) where many people speak English as a second language. The reality is that people want to be able to operate in their native language. It is also a sign of respect to make local offerings reflect the preferences of prospects and customers.

One common cultural mistake is relying exclusively on American executives and managers to run overseas operations. The lack of a local expert or local face puts the newly arrived company at a considerate disadvantage. Just as local representatives are experts on the needs and preferences of their prospects and customers, regional business executives have a much better understanding of the most effective way to do business in their region.

That said, if local teams all over the globe start reinventing the wheel, this will be very costly for a company. Furthermore, communication on a brand level should be consistent and recognizable. A brand is built with much care and effort. This process, usually taking many years, is in danger when local teams start giving their own twist to the related content.

In short, there is often friction between the desires of a company