The evolution of technology means that small- and medium-sized businesses can now compete with larger organizations in international markets.
Moreover, recent data from OECD (the shows that 9 of 14 member nations have business creation trending upward. This is encouraging news for new entrepreneurs.
But there are a few precautionary measures a small or startup business should take before plunging into overseas adventures. Here are 4 hacks for entrepreneurs entering global markets.
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Performing a SWOT analysis helps any business analyze it Strengths, Weaknesses, Opportunities and Threats. Whether you’re entering a new market, launching a product or at almost any operational crossroad, a SWOT analysis can help you to make sound decisions.
If your plan is to introduce an existing product range to a different market, for example, you’ll likely have already carried out this exercise when you entered your original arena. In the new market, some of your internal strengths could translate well. However, the external environment in a new market could force you to adapt in a number of ways.
This is a vital exercise that allows you to weigh the odds of success before taking a calculated risk.
Cross-border e-commerce could be worth $627 billion by 2022. There are definitely opportunities for small businesses to cut themselves a considerable slice of the cake.
But doing business abroad relies on having a website that’s optimized and visible in each operational market. It should also have e-commerce features that make online sales smooth and simple.
Good e-commerce platforms automate currency exchange and transactions so that customers can buy your products quickly and efficiently from anywhere in the world.
Boosting your digital presence and incorporating e-commerce is essential if you’re serious about making a mark internationally.
You might want to consider whether offshore company solutions could ease the transition for your company. For example, such an arrangement could allow you to register your organization in a jurisdiction that allows you to pay competitive tax rates. Naturally, this would maximize your profitability.
Additionally, it would be wise to advise any staff who are relocating to new territories to open offshore bank accounts.
That’s because international data sharing legislation has boosted the administrative costs associated with allowing foreign nationals to open local bank accounts. This makes the exercise expensive for banks.
But if your staff members have an offshore facility they’ll be confident they will be paid on time every time, no matter where they work. For example, they could open offshore bank accounts in a country where banking laws favor the account holder.
Whether you have a physical footprint in overseas markets or you operate completely online, you’ll still be expected to comply with local business law.
Be aware of international legal issues concerning company and employment laws. Know your responsibilities with regard to transparency and compliance. Additionally, keep up with your tax responsibilities. All of these factors can help you avoid ending up in court or facing punitive fines.
Engaging the services of an experienced local solicitor in each sector is the ideal way of sifting through these factors. This will ensure that everything’s shipshape prior to your launch.
After you’re operational, keep a close eye on any changes in local regulations that might require you to adapt further.
These hacks for entering international markets will help you do business across borders safely and profitably.