How to turn your business into a multinational organization
Crossing geographic boundaries can be a decisive step to a successful business
When we look at multinational organizations, a lot comes to mind: from the need to have documents translated to how successful an organization should be to have worldwide presence. Did you know your business can also become international?
There is a certain amount of bureaucracy involved, since everything has to be done according to law to avoid future problems, but once this stage is complete, you get profit and success as consequences, which make all the effort worthwhile.
Learn what you need to do to turn your business into an international organization and further increase your profitability.
How to transform your business into a multinational organization?
Your business can be a multinational organization in different ways. Check them out below:
This is one of the best ways to turn your business into a multinational organization: setting up a business branch in a new location, similarly to when the parent company started in its original location.
There is no right recipe for success, since bureaucracy and the steps necessary to start a business vary by country. However, in general, you have to take the following steps:
– Hire a document translation agency to assist you with the paperwork;
– Hire a lawyer who is an expert in international business procedures to assist you with the documentation;
– Register your company with the competent agencies of the country of destination;
– Know the legislation to be able to comply with all regulatory requirements;
– Allow access to your company by all competent authorities, for license grant;
– Start operating in the country.
Considering these are new steps for those who have businesses in one country only, we recommend that you be assisted by an expert in international business, who will have the expertise or will be able to get the information you need so that your business can serve customers effectively.
If your business has good purchasing power, buying another business that already operates in the desired destination country could be easier than going through the process of establishing a branch from scratch.
The process tends to be faster, since the company is already established in the foreign country, has its name recognized by a target audience, a team that is already familiarized with this target audience and that is able to run the business effectively.
Nevertheless, you will still need to resort to document translation, but you will have convenience on your side. Be careful when choosing a business to be acquired. Preferably choose a business that operates in the same segment.
As the expression suggests, a joint venture is a business or project in which two or more companies have the intention of working together in another country, without the need to acquire a subsidiary, especially when there is no money for that.
In a joint venture, both companies share capital, technology and resources in a new, shared company, which is a separate business from each of the businesses that have created it.
This option offers the advantages of having a subsidiary, but with considerable savings.
You can also consider international franchising. In this case, a foreign affiliate must obtain a license from your company to use your brand internationally.
This is a win-win deal: while an affiliate retains rights over the business, your company receives royalties from each franchise, which can greatly increase business revenue.
This is the cheapest and fastest option if you want to have worldwide presence and it also offers the lowest risks. However, you have to monitor business closely, since cultural and social differences between countries can cause business issues.
What is the importance of document translation when turning your business into an international organization?
Document translation is a fundamental part of the process. After all, you will have to draft and sign contracts for business operation abroad, and this should be done with caution to avoid problems in the future.
Regardless of how much you master a foreign language, the terminology used in the corporate and financial environment is different, full of particulars that are not common in everyday life. This can prevent you from understanding of what is being said.
There are several reasons to hire a translation agency and they are highlighted here. Remember that making wrong decisions can result in serious damage in the short, medium and long term.
Your documents have to be translated by professional translators who have all the theoretical expertise and hands-on experience to work with your documents, meeting the needs of customers with high-quality translations.
With the help of a translation agency, those who want to turn their businesses into international organizations will be able to strictly comply with the legal requirements of the country where they will operate.
When is the right time to turn your business into a multinational company?
You should take action if your business is in good financial health and if you realize it’s time to boost your income and make your business even more successful.
This is an important suggestion because operating in a foreign country will require high investments in licensing, rent and staffing, among other activities.
If your business starts operating in another country and does not have enough money to follow the necessary processes, you may need to shut it down eventually, which would result in substantial loss.
Ideally, you should plan your move carefully to drive this important business decision, a decision that can change your business and have it operate nationally and internationally once and for all.
In the translation market for over 49 years, Fidelity is a translation agency that can help your company translate documents with the reliability, credibility and experience it needs to go through this stage.