Global expansion is the goal of most organisations. Is your company ready to scale up their operations and enter a foreign business environment? With a Global Employer of Record (EOR) like TG, you can enjoy the speed of entering new markets while retaining the flexibility of scaling your operations and keeping the costs of staying compliant and operations low. This may seem “too good to be true” but let us explain further.
Entering Foreign Markets within Weeks?
There are various modes of entry into a new business environment that require setting up a legal entity such as subsidiaries. Alternatively, there are joint ventures, etc., but that too takes up time, effort, is costly, and lacks the flexibility to exit the market if the result is poor.
Let us introduce a more efficient method to explore new market opportunities without establishing a foreign subsidiary while complying with complex in-country labour laws.
Accelerate your entry into new markets with TG. As a HR Solution Provider specializing in International HR and Payroll services, we can help you scale up/down quickly with simplified go-to-market and termination procedures.
As your Global EOR provider, we will become the employer of record for tax purposes and administratively manage every aspect of recruitment, contract administration, payroll processing, benefits management, and retention. With these tasks removed from your plate, you can better concentrate on expediting the expansion of your business into a new market.
Mitigating Risks, Reducing Costs, and Maintaining Flexibility in New Markets
A secondary set of risks will accompany every expansion into a foreign business environment. Unfamiliarity with the local regulations especially when even you don’t have local HR resources or expertise could be troubling and hinder your expansion progress. However, by leveraging on our extensive 30-year experience in 50 markets and strong in-country expert teams, your business can easily navigate the complexities of local labour law regulations and reduce compliance risks.
Partnering with a Global EOR like TG allows you to tap into new market opportunities without having to set up a new legal entity. This means that costs associated with setting up a foreign business entity can be saved, and resources can be focused on your expansion strategy. With all your human resource management needs taken care of by a Global EOR, you retain the flexibility to enter and exit markets easily, without having to worry about all the administrative, legal, and manpower issues.
Developing a Successful Global Expansion Strategy
International expansion may seem like a great opportunity for your business after weighing the pros and cons. Regardless of your reason for global expansion, there are several steps to take to ensure a successful expansion strategy.
1. Conducting adequate business research
Doing your due diligence and scouting out the foreign business environment will influence your product and entry strategy. This means to conduct:
✅ SWOT analysis – Process the strengths, weaknesses, opportunities and threats to your business for this proposed expansion.
✅ Competitor analysis – Looking up and evaluating your competitor’s offerings and benchmark/compare against your own.
✅ Market research – Look up on local consumer preferences to determine if any localisation of products is needed.
2. Ensuring adequate cash flow and setting aside budget for expansion
After determining that the new environment is suitable for your business to enter, you need to assess your cash flows and ensure that this expansion will not affect existing business operations. For example:
✅ Funding options and budget constraints
✅ Any potential reputational damages of a failed expansion
3. Assessing possible legal and compliance issues
Not every country operates the same way and new environments mean new regulations and compliance laws. Thus, it is important to find out about the differences and familiarise yourself with the rules that apply in this new environment. These may include:
✅ Employment terms
✅ Employer and employee health and safety obligations
✅ Tax implications for foreign companies
4. Collaborating with a reliable and experienced staffing partner
Time is of the essence when you want to obtain the “first-mover advantage” into a new region. Hence, you will need to be able to deploy staff quickly and compliantly, which is where a global staffing partner like TG steps in. Through our Global EOR solutions, your company can onboard staff within a matter of days.
Working with a Global EOR entitles you to these benefits:
✅ Reduced HR-related administrative and compliance burden (outsourced to an expert team).
✅ More time and resources to focus on profit-generating activities.
✅ Easily scale your business up/down while remaining compliant.
✅ Save costs and time associated with setting up a separate entity.
✅ Mitigate risks related to employer responsibilities.
Key Considerations when Taking Your Business Overseas
Breaking into new markets rely heavily on having the right strategy in place. In this section, we will be introducing some considerations when taking your business into popular expansion markets.
1. Asia Pacific
✅ Difference in industry standards between your home country and the target market.
✅ There is no common “Asian” culture, language, or business approach.
✅ Is there a need for localisation of products and services to suit regional consumer preferences?
✅ Global EOR services could potentially reduce HR administration and payroll costs by 35%*.
✅ Will cultural and language barriers affect the quality of your business relationships?
✅ Regulations may differ from province to province, and it is important to be level-headed about the required licenses and permits to run your business smoothly.
✅ Business dynamics – Business is run with a heavy emphasis on building relationships and things get done much faster when the right relationships are cultivated.
✅ Depending on the size of the business, hiring under a Global EOR arrangement is at least 45% – 60%* cheaper than setting up a legal entity in China.
✅ Language and challenging local cultural and corporate landscape.
✅ Research on location is crucial. Each region has its own strengths and requires localised market strategies.
✅ Fast paced and everchanging employment market. Hence, companies should pay attention to retaining talent.
✅ A Global EOR can help your business to potentially save up to 85%* of expansion costs.
** The cost statistics are based on past projects and will not be guaranteed for future projects.
As an experienced and reliable Global EOR, TG offers comprehensive workforce solutions to help you kickstart your overseas expansion plans in record time. Our Global EOR services include local HR teams that are readily available to help you easily navigate the complexities of local labour law regulations and reduce compliance risks. This enables your business to focus on core profit generating activities and reach new heights.
Looking for a Global EOR partner to expand into a new market? Need a helping hand from our local experts in managing your Human Resources for your global expansion plans?
Find out more about our Global EOR Service: www.peoservices.tg-hr.com
Alternatively, drop us an email at email@example.com