Running any business is incredibly tough, but when you make the brave decision to expand your horizons and become a global entrepreneur... well, you are likely to face a whole lot of additional challenges as you strive to make your business a long-lasting success.
It is a brutal business landscape out there with competition growing daily. So that you're prepared, here are some of the biggest challenges of global business that you’re likely to face:
Structure
The structure of your business should be your primary concern if you want your operation to succeed. Will you run everything from home? Will you have offices in your other location(s)? Most people who’ve been there and done it will tell you it’s easier to have reliable staff on the ground in every location you operate in. However, with the advanced technology we have now, that might not necessarily be true, depending on the nature of your business. So, think about whether you can use telecommuting and remote work software to manage things from here or not and act accordingly.
Rules And Regulations
The rules and regulations your business must abide by here are likely to be very different from the rules and regulations you must follow when operating abroad. That is why it is a really good idea to hire a business lawyer who knows the country you are expanding in, as well as the language so that he or she can help you stay on the right side of the law and ensure that you are able to trade unimpeded.
Shipping
If you deal in commodities, rather than services, then shipping is going to be one of the biggest challenges you face. If you want to sell lots of products and make a profit, you need to find a fast, cost-effective and above all reliable means of shipping your stuff from place to place. Trans-ocean transportation systems like those offered by ITL Shipping are a good option because they are cost efficient, good for the environment and your cargo is generally pretty safe. However, you should always research all of your options and analyze them in detail to work out which method is truly best for you.
Tax Systems
It can be really complicated running your business in more than one country due to the differing tax laws and rules about reporting income for example. Hiring a good international accountant will help you not only to get to grips with the rules and get your finances under control, but to also ensure that you pay as little tax as you are legally obliged to.
Pricing
You can’t necessarily charge the same for your goods and services in other countries as you do in this one because average incomes will differ widely from place to place and what is appropriate here might not be appropriate halfway across the world. That means you will really need to look at your margins and see what you can do to make sales in your new territories and make a profit. This might mean producing in the new territory so that you have more of a margin.
Go Global
Global business is very challenging, as you can see, but if you are serious about it, and you do the work, there is no reason why you cannot succeed. Get growing and going global!
I hope you enjoyed this article about the biggest challenges facing global business and how to overcome the international competition.
Interested in more articles about international business?
Read My Posts:
- How To Become A Successful Global Business
- What You're Up Against: International Business
I hope you enjoyed this article about the biggest challenges facing global business and how to overcome the international competition.
Interested in more articles about international business?
Read My Posts:
- How To Become A Successful Global Business
- What You're Up Against: International Business
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