Free market globalization is no longer limited to large corporations. Thanks to the growing number of internet-savvy individuals and the rising popularity of e-commerce, companies of all sizes have the potential to reach markets on the far side of the world.
While the means to go global are there for the taking, it can be difficult for small business owners to venture beyond their comfort zone. Why rock the boat, especially if there’s no clear path to expanding overseas?
The best way to go global varies from one business to another. But there are a handful of essentials that will play a role regardless of the industry or venture. If these essentials are treated as top priorities, efforts to expand overseas are more likely to succeed.
With this in mind, let’s take a look at six business essentials for expanding into overseas markets:
Global Payroll Service
Overseas business expansion often requires hiring staff in other countries. Whether it’s one or two employees or an office worth of personnel, it’s crucial that you find a reliable means to pay them for their hard work. But given the differences in currency, labor laws, and other factors, doing so on your own is easier said than done. The solution – for many business owners – is to work with global payroll services specializing in international workforce requirements. These services have the knowledge and resources to streamline the global payroll process.
Global Payment Gateway
Most online shoppers make purchases without thinking twice about what it takes for that transaction to happen. It starts with what is known as a payment gateway. Payment gateways are the portals through which online customers are able to send money to merchants. For companies eyeing international markets, a global payment gateway is essential. Otherwise, their overseas customers will be unable to submit payment for the products or services they wish to purchase.
Global Payment Processor
While payment gateways are critical to getting online transactions started, it takes a payment processor to oversee the path those funds take from the customer to the merchant. The good news is that most leading payment gateways also serve as payment processors, with Paypal as the most popular example. With this in mind, merchants making moves to tap into global markets will need to find a safe and secure global payment processor, preferably one that also provides a payment gateway.
Every country has its own rules and regulations regarding imports and exports. What’s more, these rules and regulations vary depending on the other country. For instance, the United States currently imposes a ban on Russian petroleum imports but accepts oil from other countries. The details typically come down to cultural, economic, and political factors. With this in mind, companies planning to expand overseas must have a comprehensive understanding of current import and export information in countries on their list of expansion locations.
Sending a package across state lines is one thing. Doing so across international borders is something else. In addition to previously mentioned concerns over import and export laws, businesses will need to factor shipping logistics into the equation before going forward with international expansion efforts. The last thing you want is to discover the shipping fees that make it cost-prohibitive.
The marketing that works in one country may not work in another. For one thing, it may be illegal. For example, outdoor tobacco advertising is banned in most countries. There are also cultural differences to consider in order to devise effective marketing for consumers in other countries. Take time to study the marketing trends in other countries before making a commitment to expand. For instance, you may discover SMS marketing is a primary means of reaching customers in a certain country. That way, you’re able to hit the ground running in terms of effective outreach and successful advertising investment.
Globalization is no longer just for Fortune 500 companies. It’s now possible for virtually any business to go global if they see potential in overseas markets. However, success will come down to whether or not they utilize several vital resources. If they make these essentials a priority of their efforts, they will stand a better chance of achieving great things on a global scale.
Julie Steinbeck is a freelance writer from Florida. She enjoys writing about business, finance, health, and travel.