Ultimate guide to international expansion and strategies

If your business is successful here in the UK but it seems to have hit a ceiling, it could be time to think about international expansion.

Entering a new foreign market could open up a world of lucrative opportunities, and could be the ideal next step for your company. But it’s also a path that is fraught with challenges and costs, so you’ll need to be fully prepared

We’re here to help, with the ultimate guide to international expansion for UK companies. We’ll cover everything you need to know from types of expansion models to drawing up a strategy for success, as well as what obstacles you can expect to face along the way.

And while you’re gearing up for global domination, make sure to check out Wise Business. It’s a powerful international account suitable for companies of all sizes, especially if you have big plans to go global.

Go global with Wise Business✈️

Why expand your business internationally?

There are lots of compelling reasons to consider expanding your business internationally, such as:

Benefits
Access to new markets and customers Increased revenue Risk diversification Global brand recognition Access to global talent Cost efficiency A chance to gain a competitive edge

We’ll look at each of these in a little more detail below.

Access to new markets and customers

A new country or even a continent means a whole new customer base to tap into. This is of course if you’re able to meet local demand, stand out from the competition and develop a tailored marketing plan to appeal to your new target market. It could mean potentially millions of new customers, giving you a chance to expand your reach and increase market share.

Increased revenue

If you’ve reached a ceiling in terms of revenue in your home country, it could be time to expand abroad. With access to new markets and customers, the chance to grow and potentially diversify your product offer, you could significantly boost annual income and revenue.

Risk diversification

Putting all of your eggs in one geographic basket (i.e. the UK) is never considered to be a solid risk diversification strategy. By expanding abroad, you can reduce your dependence on just one market and make your business more resilient. If there’s an economic downturn in one region, it’s good to know you have strong performance in another to balance and stabilise the business.

Global brand recognition

Establishing your company in multiple companies offers a way to become a trusted global brand. A global presence can boost your brand visibility, reputation and credibility, helping you to build consumer trust in every region you operate in.

Access to global talent

Entering a new foreign market doesn’t just mean access to new customers - it also means access to a large and diverse talent pool. You can tap into skills and knowledge to help your company innovate, improve and thrive in its new environment.

Cost efficiency and cost saving

There are certain economies of scale you can benefit from as a global business, especially in terms of production volumes and distribution networks. If you can find ways to make your processes efficient, especially when it comes to supply chains, you could make significant cost savings.

There may also be other financial advantages, such as tax benefits for businesses in some countries.

A chance to gain a competitive edge

If you move into a market where competition in your niche is less intense than back home - and you get there first - you could benefit from something known as ‘first mover advantage’. This helps you to hoover up market share, establish a strong presence and gain a competitive edge, before any of your rivals start moving in.

💡 Explore our guides to doing business in Asia, LATAM, the U.S and Europe✈️

The challenges of entering new international markets

While there undoubtedly are a lot of benefits that come with global expansion, there are also plenty of pretty high hurdles to overcome. Entering a new market can be tough, expensive and time-consuming.

Typical challenges include the following:

• Language barriers and culture shock
• Complex regulatory landscapes and bureaucracy
• Political and economic instability
• Multi-currency financial management
• High upfront costs
• Corruption and intellectual property risks.

We’ll look at these in more detail below.

Language barriers and culture shock

If you’re moving into a country where English isn’t widely spoken, you may need to brush up on your language skills - or set aside some budget for translators.

The culture may also be quite different than you’re used to in your home market. Consumers may have different preferences, pain points and demands, and etiquette in the business world may also take some getting used to.

You’ll need to do extensive research and work with local partners to gain insights into your new market. You’ll need to tailor everything from products to marketing strategies to the new location, otherwise you could miss the mark.

Complex regulatory landscapes and bureaucracy

You’ll need a solid legal team if you’re expanding abroad, as the regulatory landscape may be quite different than it is back in the UK. You may face lengthy legal and bureaucratic processes, mountains of extra paperwork and incredibly complex tax arrangements, with harsh penalties for non-compliance.

Political and economic instability

As a business owner launching in a new country, you may well be impacted by changes in government policies, conflicts, political unrest or localised economic instability - with everything from inflation to currency fluctuations affecting your bottom line.

You can’t always predict these, but you can be as prepared as possible with risk assessments, contingency plans and expert advisers on your team.

High upfront costs

Launching a business in a new country essentially involves starting from scratch. This means high upfront costs, from registering a business to finding office space and hiring employees.

Corruption and intellectual property risks

Not all countries have a great track record when it comes to unethical business practices and corruption, as well as robust enough protections for intellectual property. These can all pose serious risks for your business, so you’ll need to do your due diligence when choosing which markets to expand into.

Multi-currency financial management

Managing business funds between multiple currencies can be difficult and complicated, with risks to both revenue and profitability.

You’ll also need to find secure, cost-effective methods for making and receiving international payments.

A Wise Business account is ideal for this, as it’s specially designed for international businesses. You can manage 40+ currencies all in one place and send secure payments worldwide for low fees and mid-market exchange rates.

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Timing is key - when is the right time to expand?

A crucial mistake you can make as a business owner is expanding too quickly, before you’re ready. If you stretch things too far, too soon - you could face problems further down the line.

That said, it’s never too early to start thinking about and planning for international expansion. Having an eye on this as a key future goal can help you make smarter strategic decisions as you grow your UK business.

There’s no hard and fast rule for the perfect time to expand internationally. But you will need a few key things in place:

• Solid performance and stability in your UK business
• Sufficient funding to cover the upfront costs of expansion - and to act as a cushion in case it takes longer than expected to get established
• A comprehensive and well researched expansion strategy and roadmap.

The more you can plan, the better prepared you’ll be. This may mean it takes an extra year or so to get your strategy in place, but it could give you a stronger platform for success when you do launch overseas.

💡 Learn more about navigating risks of international expansion

How to develop an international expansion strategy - step-by-step

International expansion isn’t a process you can rush. It’s important to plan and research in as much detail as possible, creating a watertight strategy that you can follow in order to reach your goals.

Let’s run through the key stages of developing an international expansion strategy, step by step.

1: Choose a type of expansion model

The first step is to decide on an expansion model. Here are a few of the most common:

• International - this is where operations remain centralised, but products/services are sold outside the domestic market without many changes or customisation.
• Multidomestic - this strategy involves adapting products/services to suit local preferences in each market. Operations are decentralised, with each market operating somewhat independently.
• Global standardisation - this is where standardised products/services are offered globally, with consistency and uniformity a top priority across everything from operations to branding.
• Franchising or licensing - instead of operating directly in a foreign market, this strategy offers a route to expansion through agreements with third parties to use products/services/branding in exchange for fees or royalties.

2: Develop an expansion roadmap, with short and long-term goals

The next step is to draw up a timeline for your expansion, setting short and long-term goals along the way. This helps keep your plans on track, with a structure and clear direction to follow. Make sure your targets pass the ‘SMART’ test - specific, measurable, attainable, realistic and time-bound.

3: Do extensive market research

The key to success when expanding internationally is market research, and lots of it. You need to understand your new customer base, demand, local competitors, the socio-political landscape in the country and many other key factors.

Work with local experts and make use of local talent wherever you can, taking advantage of as much help, advice and support as possible.

4: Find local partners

You’re going to need third-party suppliers and services to help you succeed. For example, you may want to outsource marketing, PR or legal services to a local company with specialist local knowledge. You’ll need to start building this network of partners at an early stage.

5: Sort the logistics

While you’re working on your strategy, you’ll also need to start getting some essentials ticked off your list. This includes:

• Opening a local business bank account
• Finding office space
• Registering your new company
• Registering for taxes
• Applying for visas
• Recruiting staff.

💡 Explore our international expansion checklist

Grow your company and go global with Wise Business

While you put your international expansion plans into action, you’ll also want to make sure you’re set up with the right business account.

Open a Wise Business account and you can hold and exchange 40+ at once.

You can send fast, secure payments to 140+, and get account details to get paid in 8+ like a local.

Whenever you need to send, spend or exchange foreign currencies, you’ll benefit from the mid-market exchange rate, with low, transparent fees.

You’ll also benefit from all of these features with Wise Business:

• No ongoing fees, minimum balance requirements or foreign transaction fees
• Debit and expense cards for you and your team, which you can use in 150+
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 people at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions
• Use the powerful Wise API for automation and streamlining workflow
• Take advantage of Wise Interest to make your funds work harder when you’re not using them (capital at risk).

With a truly global account, you’ll be all set to grow your business worldwide.

Get started with Wise Business✈️

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Sources used: N/A

Sources last checked on date: 30-Jul-2025