Spreading your wings into other markets across the globe can unlock a goldmine of untapped customers to grow your business. In the same vein, it comes with risks and challenges that require proper planning and preparation to get it right. To that end, here are some doing business abroad tips to help you navigate the process with ease.
Starting a business overseas
Regardless of how successful your business is at home, thriving in a foreign market is a different ball game. That's why you need a well laid out plan which involves the following:
- Managing foreign exchange issues
- Legal regulations and operations
- Employee management
2. Managing foreign exchange
Your operations in a foreign country aren't completely divorced from your local market, especially when starting a small business abroad. You’ll need to pay suppliers and other costs to set up shop from your account at home.
Once the business becomes profitable, your main concern will be repatriating profits.
To facilitate all these transactions as smoothly as possible, you’ll need an international payments provider, such as Clear Currency.
While you can use your bank; you'll be faced with high exchange rates and layers of hidden fees.
Tips for choosing the best FX specialist service provider
- Exchange rate. Compare a few providers to find the most competitive rates.
- Transaction fees. Look for clear and transparent pricing, and check there are no extra hidden fees.
- Speed and convenience. Check the reviews; you need a provider that’s fast, efficient and available 24/7.
- Regulated. Choose an FCA regulated provider.
- Guidance. Find a provider with a team ready to answer all your questions to help you reduce foreign exchange risks.
2. Legal, regulatory and operational framework
Duplicating your business model in a foreign market is a recipe for failure when starting a business abroad. Before you launch, take the time to scope out the new environment and get a handle on how they do business.
Areas for research
- Amenities. Check the availability and cost of office space, electricity, water, transportation, etc. In some places, you will have to budget for power backup systems.
- Registration. Registering and opening a business abroad takes longer in some markets than in others. For instance, in New Zealand, you can complete the process in one day, while it often takes more than a month in South Africa.
- Business laws. Find all applicable laws. For example, is your business required to have a specific percentage of local shareholders?
- Culture. Your business should fit in with the cultural norms of the new market. So consider issues such as cultural preferences, languages, education, religion, societal norms and ethical values. It may be a good idea to partner with a local existing business to get the lay of the land faster. Also, invest in cultural intelligence training.
- Tax regime. Find out how corporation tax is handled in the foreign market. Also, ascertain if your home country has any tax arrangements with the market you’re entering.
- Government. Political stability affects how you operate, so consider all the risks before you take the plunge.
3. Employee management
Your employees are at the core of ensuring that your business succeeds. So when you’re finding out how to start a business abroad, find out how and where you can get top talent in your target market.
What to consider
Ask questions such as:
- How many of your top brass can you bring as expatriates?
- Are you expected to hire a specific quota of local staff?
- Can you recruit international employees remotely?
- What are the laws regarding employee benefits?
- How are you going to manage cross-cultural team relations with respect to time zones, language and technology differences?
Setting up a business abroad: the key takeaways
The key to international business success is having a clear plan of action and covering all your bases before you begin operating on foreign soil.
- Make sure to choose a tried and tested FX transfer services provider.
- Do your homework and find out all there is to know about the laws and operating structure of your chosen country.
- Spend time working out how to get the best employees and how you will manage the team.
Be on the safe side with Clear Currency
Currency fluctuations, high transaction rates and delays in sending payments can put a dent in your plans to flourish in the new market.
Turn to Clear Currency for international transactions that are:
- Smooth and fast
- Competitively priced
- Safe, secure and compliant with FCA regulations
- Without hidden fees
We have a team ready to answer all your questions. The goal is to help you retain more of your money while you work on getting the hang of the new culture and operating laws.
So, sign up today to get a bespoke international transaction solution for your business.