5 Factors to Take Seriously if You’re Contemplating Doing Business Abroad

    The overwhelming majority of entrepreneurs envision themselves running global empires.  But, dreaming about doing international business, and actually going through with it, are two different things.  If you happen to have ambitions of expanding an enterprise overseas, it’s important to recognize that the hurdles along the way are considerable.  International business involves planning, preparation, and plenty of due diligence.

Bigger Business Means Bigger Responsibilities:

Business Writer Miranda Morley suggests that, “International business dealings present several struggles, including everything from culture and language barriers, to shipping costs. Before you do business internationally, prepare for these challenges wisely. You should only follow through with working overseas if you have a rock-solid strategy in mind.” Here are a few variables to account for when expanding a business abroad:

1.    Assorted Legal Requirements:

Doing business across borders demands tax-compliance in more than one economy. It requires legal contracts and commitments established under different judicial systems. Any company that wants to do business overseas should be prepared to comply with fluctuating regulatory environments.

2.    Local Connections:

It’s impossible to do business across borders without a grassroots network of professional support. Local help is crucial to facilitate initial brand-introduction. The bigger the local network, the easier it is to develop customer relationships.

3.    Viable Marketing Strategies:

Marketing and advertising don’t necessarily work the same way from one country to another.  This is why it’s important to have a flexible approach to marketing, when expanding overseas.  Some regions lend themselves well to high-tech marketing, whereas other regions lend themselves well to traditional forms of marketing.

4.    Cultural Norms:

In the same way that advertising is a subjective element geographically, business models are also rarely universal.  Before going all in on international operations, it’s important to make sure that the target market/region is culturally receptive to the products being sold by a business.

5.    Exchange Rates:

Money doesn’t have the exact same value in different parts of the world.  And in some cases, the mathematical differences triggered by exchange rates can put pressure on profit margins.  If and when a company tries to expand internationally, it’s practical to calculate whether exchange rates are advantageous.

Conclusion:

International business is a delicate balancing act.  It’s a matter of calculating how much effort goes into planting roots in new environments and frontiers.  This takes time, and it necessitates patience.  But the rewards can be plentiful when a thought-out approach is taken. If you like what you just read from our blog, you’ll love the various informative courses, workshops and events listed on our websites and social media. Whether you’re interested in personal development, or overall improvement of your business, give us a call at 1 (800) 913-0222 to find out how Richard Martinez can help you break past your daily struggles and start soaring in success.