The advent of the Internet means that even the start-up or sole trader can launch as an International enterprise straight away, although it will obviously depend on the type of business and the product or service that you offer. Whether your business is well established, and you are considering going global, or you are getting your first entrepreneurial venture off the ground and want to attract a global audience, there are questions to answer and challenges to overcome.
Always ensure that you understand local laws and legal requirements when conducting business overseas, or conducting business with overseas clients. Different countries do have different laws, and you will be expected to abide by them if your business crosses borders. Taxes, investment laws, insurance requirements, business laws, and even personal finance laws need consideration, and you should consider enlisting professional advice to ensure your compliance with these laws.
Business insurance is more important than ever, and there are numerous policies and even packages that cater to the small business and the entrepreneur. Catlin can put together a comprehensive and personalised insurance strategy for your business, ensuring that you are prepared for any eventuality and to protect your business.
Getting to know your local market can prove difficult, and if you are taking your business global, then you will essentially have hundreds or even thousands of local markets to take on. If you have the capital, then it can prove easier if you are able to establish a base of operations in that country, or at the very least hire a local business consultant to help forge a business strategy with you.
Simply being willing to offer your products or services to overseas markets does not mean that you will be a global success, even if you are a leading UK business. You will need to conduct thorough market research, make changes to your products and services where required, and you will need to specifically market and advertise to your new markets in order to ensure that you gain market traction.
You will be paid in foreign currencies, and fluctuating exchange rates coupled with the costs, means that you could end up with lower revenue than you anticipated. Exchange rates can have a surprising impact on your profits, so you should look into ways to mitigate for potential loss. Your prices need to remain competitive, but you still need to be able to turn enough of a profit to justify taking your business global.