If you run a successful business, the time will eventually come when you’ll want to take it global, especially if you operate in the eCommerce sector. There’s a massive international market for your products, just waiting for you to exploit it.
Unfortunately, though, there are hurdles too – the main one being cost. Thanks to regulations and borders, doing business overseas tends to be more expensive than doing the same thing in your home country.
The good news, though, is that technology is allowing entrepreneurs to sidestep many of these costs. The systems aren’t perfect yet, but they’re certainly making it easier to take your business global than it ever was in the past.
Take a look at some of the ways that you can stop paying excessive fees to take your business global.
Set Up Plants In Foreign Countries
A lot of companies will whack tariffs on goods coming into their countries from overseas. It’s a way for them to drum up revenue, but it also shrinks your target market. If the price is higher, you wind up selling fewer units.
If, however, you set up new production facilities in the target market, most countries will waive tariffs. After all, you’re employing their citizens. That’s something that they want.
Stop Sending Currency Through Traditional Banks
If you wanted to pay overseas suppliers in the past, you had to go through the international banking system. It worked, but it was slow, and bankers took massive commissions. Only businesses with the highest margins could afford to operate like this.
Now, though, there are a host of alternative international payment systems that operate fast and don’t cost you a lot of money. Most only charge you the spread between the bid and ask prices on forex markets, pushing the price down to the lowest that it could be.
Flying right now is impossible. But even when things return to normal, you should avoid it however you can. It might seem like a great lifestyle perk, but it can eat into your budget enormously. What’s more, it doesn’t provide all that much of a benefit. Yes – it means that you get to meet people in person. But aside from that, where’s the return?
Collect Your Payments In A Multicurrency Account
Multi-currency accounts are exactly what they sound like – accounts where you can hold different kinds of money. The benefit of these is the ability to switch between one currency for another fast if you need to. The other perk is that they allow you to consolidate your banking operations instead of having to hold multiple accounts across different countries. You can take money in domestic currency and only convert it if you have to. You can plough the rest of it back into local sales, marketing and wages.
Running an international business has never been cheap. But with new finance options, plus a bit of common sense, can bring the cost down substantially. You’ll be amazed by how much you can save.