Five mistakes to avoid during an international expansion
Published: April 26, 2022, 1:48 PM Updated: April 28, 2022, 1:55 p.m.Is your company about to take the step outside Sweden’s borders? Of course, there are many benefits to international expansion, but there are also many pitfalls. Here, the really experienced experts share the most common mistakes companies make when they want to grow internationally read and learn!Download the ebook “10 mistakes to avoid during international expansion” in Swedish Expanding to international markets means great opportunities when done correctly. But it is also easy to make mistakes and make mistakes that can be costly, both in terms of time and money. Globalization Partners has extensive experience in guiding companies that want to expand internationally. Here is a list of the five most common pitfalls for companies that want to grow outside the country’s borders and how you can do to avoid them.
Hire employees who do not fit the company’s long-term vision
It’s easy to get excited and enthusiastic about a fresh start abroad. It makes the job fun but can also mean that you risk hiring employees who fit well in the phase the company is in at the moment, but perhaps less well in the coming years. Be sure to ensure that the new employees’ skills and experiences also rhyme with the company’s more long-term strategies and goals.
2. Not to choose the most driven employees
Establishing the company in a new market entails many challenges no matter how well-read you are, theory can differ from practice. Therefore, it is extra important that the employees who are to be involved in establishing the company in the market know their stuff, and are driven and can take their own initiatives. A good tip is to not only choose employees based on education and formal skills, but also based on experience and ability to run projects.
3. Wait too long to familiarize yourself with local pay rules and systems
A good rule of thumb is to familiarize yourself with local pay rules and systems even before you offer an employee employment. Each local market has its own complex rules and there may, for example, be a number of fees that make the employee’s salary much more costly than you expected from the beginning.
4. Underestimate the challenges of communication between different workplace cultures
Straight or avoidant, hierarchical or flat? Communication in workplaces in different countries usually differs considerably. Be sure to spend enough time getting to know all the new employees and how they are used to communicating.
5. To reinvent the wheel every time
Of course, the markets of different countries differ from each other in many ways. But there are also many experiences that can be applied everywhere, regardless of country. Look for keys to success in your own company but also in others. What has been successful before? Have other companies made mistakes that you can learn from?Download the ebook “10 mistakes to avoid during international expansion” in SwedishThe article is produced by Brand Studio in collaboration with Globalization Partners and not an article by Dagens industri