How To Do Business Abroad
Thanks to the advances in digitalisation and technology it’s easier than ever to do business internationally. That said, the nuances of each market may differ, so you'll need to arm yourself with the right information to succeed. Here’s a checklist to get you started with your business plan for growing your business in a foreign market.
Doing Business Abroad Checklist
Consider the following when expanding a business overseas in both established and emerging markets.
- Legality. Is the contract binding in that country? Where will legal proceedings be handled in the event of a dispute?
- Social norms. Research the general opinions expressed by the public on meetings, punctuality and dressing.
- Business analysis. Do target market research to determine if the business operation is feasible.
- Business protection. How long does it take to start a business? How do you protect your intellectual property?
- Regulations. Comply with tax rules, export and employment laws when setting up your business operation or exporting.
- Foreign exchange. What’s the currency exchange rate? Figure out how you are going to manage risks and find a safe and efficient way to send and receive funds abroad.
Where Are You Doing Business Abroad?
A Quick Guide to Exporting to Europe
Exports are big business in the UK. In 2021, international sales of products and services totalled £625 billion, with the EU accounting for 42% of this sum. However, since Brexit and the UK’s departure from the European Union and single market, sending goods to Europe has become more challenging.
How to Mitigate Foreign Exchange Risk
Currency risk can have a significant effect on the efficiency and profitability of any international business. Each exchange rate movement affects how much you receive from sales and what you pay to suppliers.
How to Calculate an Exchange Rate – Currency Conversion Formula
Exchange rates refer to how much it costs to exchange one currency into another. As they fluctuate on a daily basis, how much your currency is worth can vary at any given time.