Global Expansion - What every Israeli business should be prepared for when entering new global markets

Israel is known as a “Startup Nation” with innovation ready for entry into global markets. That global expansion requires careful financial, operational, and compliance planning. So that when the timing is right, the approach has been carefully considered. It’s important to be fully ready for international business and cross-border operations. Going global can bring a whole host of considerations, and requires strategic planning for entering new markets.

This guide helps Israeli businesses prepare for successful international growth.

Assessing Market Readiness for Global Expansion

The first consideration is to evaluate demand and product-market fit internationally. Will the product satisfy a strong consumer demand which will generate customer acquisition and retention? To understand this, it takes research on the local competition, cultural, and regulatory environments. For some companies it makes sense to do expansion in phases rather than an immediate global launch.

Financial and Accounting Considerations

As part of the preparation, it’s important to budget for what may come. This includes the cost of foreign operations, and also currency risk management so that fluctuations in global exchange rates are considered to protect a company from any losses.  A company should also prepare for audits and financial statements that are compliant with the relevant standards (IFRS, US GAAP, local GAAP).

Navigating International Tax and Compliance

Working cross-border introduces tax exposures and should be analyzed in advance with an experienced tax professional. Considerations include cross-border taxation, transfer pricing studies, and legal requirements. There may also be incentives, treaties, and Research & Development encouragement laws abroad. So just as much as you’d mitigate risks, you’ll want to take advantage of unique opportunities.

CFO Advisory and Strategic Financial Planning

Aside from the preliminary needs, there will be continuous needs to manage the foreign operations. This includes cash flow monitoring across multiple countries, to ensure the company has enough liquidity to meet short term obligations like payroll and vendor expenses, and can plan accurately for financial needs in the future.  The reporting systems will need to be more inclusive in analyzing Budget vs Actuals and reporting that global investors will care to see.

See more about CFO Services

Operational and HR Strategies for International Growth

Since it is unlikely to start off an expansion with a full staff, many job functions will be outsourced to firms that can support with external expertise. This usually includes operational and administrative duties. And it can help to hire remote workers through an EOR / Employer of Record or PEO / Professional Employer Organization. That way there is less administrative burden on the company, and no need to hire full time employees for certain roles.

Audit and Assurance for Foreign Operations

Introducing more countries of operation also brings the need for more audits to cover those areas. The audits must be conducted to meet international standards. And with that local expertise can also come new insights on how to mitigate risks and set up ongoing compliance checks for subsidiaries.

Overcoming Common Challenges in Global Expansion

It’s also important to realize that entering a new region also requires overcoming new norms specific to the region. Cultures can vary and effect the way people communicate in business. Companies may need to navigate around new legal structures and logistical hurdles. Reporting needs may be different based on local compliance and standards. It’s critical to avoid common mistakes in bookkeeping, tax, and operations - especially when a business operates cross border.

Smart Steps for Israeli Businesses Going Global 

Our firm SZ Shvarts Zedkia accompanies Israeli businesses in every aspect of its readiness to expand globally into new markets. Beyond support in finance, HR, operations, and compliance - we also leverage our expertise through our international advisory networks and relationships. We emphasize strategic planning, local partnerships, and structured scaling.

Ready to expand your Israeli business globally? Partner with SZ Shvarts Zedkia for international expansion.