What do international investors need to consider when entering the market?

Imagine you have a promising product, a strong team and enough capital and now you want to roll out your business internationally. Sounds like a plan, doesn't it? But before you just get started: Entering a new market is not only exciting, but also full of stumbling blocks.

1. Nothing works without market analysis

Before you dive headfirst into a new country, you should get a clear picture of the market. Who are your potential customers? Are there already similar offers? What makes the people there tick? A solid market analysis will save you a lot of frustration - and money - later on.

2. Understanding the legal framework

Different rules apply in every country. What forms of company are permitted? How does the foundation process work? Are there any special requirements or permits? Especially if you come from abroad, you should get good advice here - otherwise it will quickly become expensive.

3. Taxes: unpleasant, but important

Unfortunately, tax law is rarely sexy, but it is absolutely crucial. Is there a double taxation agreement with your country of origin? What tax rates apply? And what about the payment of social security contributions? Sounds dry, but it's a real success factor.

4. Cultural differences are not a myth

Many companies underestimate how much consumer behavior, communication and expectations differ from country to country. What is considered businesslike in Germany may come across as impolite in other countries - or vice versa. A feel for cultural nuances is a real advantage.

5. Local partners make it easier

Especially at the beginning, it can be worth its weight in gold to team up with local players - whether consultants, distributors or business partners. They know the market, may have contacts with the administration and can help you gain a foothold more quickly.

6. Choosing the right type of company

GmbH, Limited, AG or something completely different? There are different models depending on the country and business objective - with different requirements for capital, liability and administration. Get advice before you decide.

7. Hedging risks

New markets always entail a certain amount of risk - political, economic and legal. Find out about possible protective measures such as investment protection agreements, insurance or special support programs for foreign investors.

8. Clever market entry planning

Do you want to set up directly yourself? Or sell through a local company first? Perhaps franchising is the better solution? There are many ways into a new market - the important thing is that you choose one that suits you, your product and your budget.