You’ve chosen a state in which to incorporate, established a business structure, and now you’re busy selling your product or service to satisfied clients and customers. The business you’ve nurtured is now growing rapidly, and the time has come to make the leap into nationwide or even international expansion. Navigating multi-state and global operations is a big evolution for anyone. It may involve expanding and relocating your business, learning to navigate a new set of regulations and client/customer needs, or localizing your business or brand to meet regional conditions and cultures. 

It might seem like a tall order–and it is–but we’re here to help you through it. Your business is unique and has needs of its own, but what follows is a series of general guidelines that should help any business launch a multi-state or global expansion and navigate the opportunities and challenges that come with it.

Relocating and Restructuring for Expansion and Growth

In part one of this series, we discussed at length selecting a state in which to form your business. Ultimately, most small businesses, startups, and entrepreneurs are best served by incorporating in their state of residence. However, things change as the business grows and expands, and if your business is moving into nationwide or international operations, it may be time to consider a relocation to a state which offers easier corporate formation, lower fees and taxes, or great privacy and liability protection. Picking your new location will require a balance of your insider knowledge of your business and external expert legal and business development advice. However, with a little planning, you may find that relocating to a new state of incorporation makes life much easier as you move forward.

The same is true for restructuring. Many businesses start with a simple LLC, which has some real advantages for startups and entrepreneurs in particular. However, as you grow and expand you may want to take advantage of the different kinds of corporate structures available. Each has its own strengths regarding taxation, transparency, and asset protection, so do a little research, get professional advice, and choose something that will best suit you as you expand your business across the country or around the world.

Market Identification, Regulations, and Taxation

Now we move back into the weeds regarding into which markets the business is expanding and what happens when it does. Identifying a market rich with potential clients or customers is a complex task, and there are number of critical factors to consider when doing so:

• Is this the right market for you? What makes a given market “right” for your business is both situational and circumstantial–is there demand for what you sell? Can you cultivate client/customer relationships that pay off in the long run? Is the market both wide and deep enough to be worth your time? What’s the competitive landscape like and can you fit into it successfully? It’s a multi-faceted question, but each individual piece can help guide you to the right decision if addressed honestly.
• What’s the regulatory environment like? No business should expand without getting detailed professional advice about the regulatory and legal issues that come with expansion into a given market or region. Different states, provinces, and countries all come with their own laws and regulations. Your business is responsible for knowing and complying with these requirements, and how you do so will affect both your bottom line and your long-term sustainability.
• How do you manage risks and asset protection? In many ways this is an extension of the above bullet point about the legal and regulatory environment, but different markets and jurisdictions bring different risk management and asset protection considerations. Those affect the cost of doing business, so be sure to address them up front.
• Taxes, taxes, taxes. Like death, they’re inevitable, but expanding into a new space will almost certainly bring new questions of taxation and new tax liabilities with it. Make sure you know what those are and how they’ll affect both your expansion and your return on investment (ROI) as your business grows and evolves in its new environment. 
• Is your expansion sustainable and scalable? At the risk of lapsing back into 1990s-style execu-speak, sustainability and scalability are prime considerations when expanding into a new market. Can your operation scale to meet demands while also adapting to meet new market conditions and a new set of consumers? Will your efforts prove sustainable in the long term–e.g. can you continue to cultivate a profitable consumer/customer base and ensure return on investment for the foreseeable future? It’s easy to let the initial demands of expansion cloud these issues, but they matter at every stage of an expansion.

Perhaps interestingly, these considerations hold true whether you’re expanding into a neighboring state/province, moving to a nationwide reach, or developing a global market. There are differences in size and scope of course, but the principles and the considerations hold firm. 

Localization: Adapting to Cultural Differences and Requirements 

The world is a large and diverse place, and that diversity creates both rich opportunity and a series of challenges and considerations for expanding businesses.  There are two primary ways in which localization–adapting a business to a new culture–can affect your expansion. The first relates to the demand for your service or product in a particular cultural environment: what niche do you fill? Who is your target consumer and what do they want from you? How do you ensure that you are meeting that need in a culturally appropriate way in order to ensure demand?

The second relates to branding and marketing. Different cultures have different senses of imagery and symbolism, different ideas of humor and etiquette, and differing ways of communicating with and relating to businesses and brands. The branding and marketing strategies you have made use of thus far may not be as effective in an international market and may not connect with this new set of potential clients or customers. Localization is the art and science of bridging that gap and adapting your brand message and marketing to a new space and a new culture to help your expansion succeed. Once again, expert guidance, advice, and targeted business intel are vital functions; do not neglect them.

Building National and International Success

Expanding your business is a heady time–your hard work is paying off, your success is growing, and you’re making a daring leap into a new frontier. Whether you’re moving to another state, expanding nationwide, or reaching global heights, Bagchi Law offers the legal advice, financial insights, and business acumen to help you succeed at every stage of your business’s development. Schedule a consultation and let us talk about your business, your future plans, and how we can help you achieve them.