International expansion is a huge step for any business. It gives you the opportunity to branch out into new markets, reach new customers, and diversify your revenue streams. In a world where people can work from anywhere and e-commerce is king, it’s more attainable than ever. No matter how you slice it, though, doing international business requires an up-front investment of time, money, and energy. Even if you give it your all, you won’t see significant ROI without a good plan in place.

Here are some tips on how to weigh your costs and turn your investments into profits.

Invest in Understanding the Local Culture

One of the most important places to invest your budget when doing international business is research. The simple fact is that not every culture will respond to the same strategy well. When General Mills attempted to expand their line of pre-packaged cake mixes to Japan in the 1960s, they assumed it would be as popular in America. If they had done their research, they’d have realized that cake mix wasn’t likely to sell well in a country where just 3 percent of homes had an oven.

There are more ephemeral things to consider as well. While a direct and energetic communication style might work well in the USA, it can seem off-putting elsewhere. There’s also always the possibility that a slogan or bit of branding that works well in the States can be confusing—or even offensive—when translated. Consulting with people well-versed in the culture and language in question might be a higher cost up front, but it’s a good investment in the long run.

Be Mindful of the Legal Landscape

In addition to the local culture, you need to get intimately familiar with any regulations that might impact your business. Take for instance the GDPR in the European Union. When this data and privacy security law was implemented in 2018, digital marketers across the world had to recalibrate their strategy to be compliant with the new regulations. Even companies not located within the EU faced astronomical fines if they were handling user data in a way that was not compliant with the law.

Wherever you’re expanding, make sure you understand what legal obligations your company has. Even if something hasn’t been signed into law yet, it can pay to have a grasp on which way the winds are blowing. With emerging technologies like AI that have seen little to no regulation yet, there’s always the danger of building your strategy around a tool only to have that tool regulated away. It’s better to spend the money now than risk the fines in the future.

Projecting Costs with Concrete Goals

Like any digital marketing campaign, your international business plan needs to have clear and specific goals. Are you trying to increase your sales in a market you already have a presence in, or are you trying to break in somewhere now and need to boost your brand awareness? Dial in on what you want to see grow and by how much, and you’ll have an idea of how much you need to spend to reach those goals.

This is also where your earlier market research can see some ROI. Not every segment of an international market is going to be profitable for your business. Take a look at what demands could be met, see where competitors are investing their time, and make a decision accordingly.

Plan Your Pricing Strategy

Pricing strategy is a delicate balance. You need to carefully weigh your international business costs against a price that is likely to appeal to your new market. If you’re just breaking into a market, you may need to get aggressive to steer potential customers away from the competition. A competitive penetration pricing strategy designed to position yourself as the best deal on the market can help with that, as can a promotional pricing strategy advertising a heavy discount for a limited time.

However, the loss in revenue can significantly cut into the ROI from your initial marketing spend. If you already have a sizable stake in another market, though, it might be worth it to eat the cost while you push to expand. Be smart about how you enter the market, and be careful not to overextend yourself.

Manage Risks

While there are risks to any kind of business, international business will force you to confront them on a global scale. Depending on the size of your business, the amount of risk you’ll be able to responsibly manage will vary. Things like inflation or rising interest rates can depress your target economy just as much as they can your domestic one, making your audience less likely to spend.

Likewise, expanding your supply chain to a global scale can present new problems with new shipping partners and taxes, all while adding more potential points of disruption to your distribution. If you’re looking into an international market, even the threat of instability or geopolitical conflict can cause a massive economic downturn—or prevent you from doing business there entirely. Each of these risks will have its own costs, so take them into account when considering how much you can budget.

Stay Dynamic to Maximize ROI

Ultimately, there is only so much you can be prepared for. Even if you’ve invested months or years into researching the optimal strategy, international business is a fluid thing. The best way to maximize your ROI is to stay nimble. Working with a company such as InnoVision Global Marketing can be helpful on that front since they have an existing infrastructure for branching out into international markets.

Have plans in place for when regulations change or the local culture shifts. Be ready to roll out new strategies if other ones fail. Don’t count on anything to work exactly the same as it does in the domestic market. When you stay responsive, you can adapt your costs and keep your ROI high no matter where you go.