Expanding Business & Launch Global Business Efforts: "For each benefit gained by regulation, there is a cost."

Launching a global business effort takes an extensive amount of coordination and effort. Some proactive measures that you should take are ensuring that you can successfully execute your business model domestically here in the United States. Hiring people that are experienced in global ventures greatly increases your chances for success as well. You should develop a completely different set of metrics to measure the success that your company is seeing in a global market and utilize technology to coordinate with global representatives. You should also be prepared for the chances that you could fail internationally. You will need to develop a strategy for how you will handle not being successful and decide where your stop loss will be so you don’t dig yourself into a hole that you won’t be able to get out of. Most importantly, “ensure that you are financially and resource-ready to enter additional markets” (Bruner, Ernst, & Young, 2005).

The cost of each benefit gained by regulation is compliance. It hurts small businesses the most because they have fewer employees to spread the cost over. “Companies will spend $80 billion on compliance in the next five years. This year they will spend a collective $15.5 billion, with the average company coughing up $500,000” (Stone, 2005). Businesses are expected to comply with four different levels of regulatory compliances. The four levels are federal, individual state, private industrial, and the foreign regulations in the countries they conduct business in abroad (Burke, 2007).

References

Bruner, Ernst, & Young. (2005, October). USA Today. Retrieved November 1, 2011, from Planning and launching a global sales strategy: http://www.usatoday.com/money/smallbusiness/2005-11-09-entre-1-nov_x.htm

Burke, J. (2007, September 7). NetworkWorld. Retrieved November 1, 2011, from The spiraling cost of compliance: http://www.networkworld.com/research/2007/090707-compliance-cost-rising.html

Stone, A. (2005, March 14). Bloomberg Businessweek. Retrieved November 1, 2011, from Cost of compliance: http://www.businessweek.com/the_thread/wellspent/archives/2005/03/cost_of_complia.html