The Internet has made it easier than ever for even small businesses to expand into international markets; however that doesn’t mean that it’s easy to trade on a global stage. If you want to succeed internationally, you’ll need to do your homework first, and understand the many challenges that international businesses face. Here’s a short checklist to help you avoid the most common international trading pitfalls:
- Check time zones: When you’re networking at international events, the idea of working with a company based on the other side of the ocean seems like a brilliant one. The team are easy to work with, friendly, and incredibly talented. However, when you urgently need to speak to their tech team, and it’s midnight where they’re based, you’ll quickly wonder what you were thinking. Iron out service level agreements, and consider time zone differences, before you commit.
- Accept the language barrier: It’s true that in many industries, most people speak at least some English, and for those that don’t, some German or French might help you get by. A basic course in English at high-school level won’t prepare you for the real world with all its slang, sarcasm, and strange idioms. If you’re planning on dealing with a lot of foreign companies, understand that wires will get crossed from time to time. They may miss-understand your jokes, and you might think they’re being terse or rude when they’re trying to be formal and polite. Always, always, give people the benefit of the doubt.
- Fully research tax laws: Granted, taxation doesn’t make much sense at the best of times, but when you’re entering the world of international trade it gets even fuzzier. Make sure you hire a good accountant, and understand how trading with foreign countries will impact your bottom line.
- Budget for travel expenses: You probably won’t be able to afford to do site visits for your new international suppliers or clients, but you will want to start attending more international events. Make sure you have room in your budget for keeping your new relationships alive.
- Get an international bank account: If you’re buying things in Euros, getting paid in US Dollars, and paying your employees in British Pounds, then you’ll have a hard enough time keeping up with exchange rates, let alone getting charged exchange fees by your bank. Try to find an account that doesn’t charge a fortune for international transactions.
Succeeding on the international market can be challenging, but it is possible. Make sure that you carefully manage the expectations of your international clients, and that they know when they can reach you, and when you are likely to try to reach them.
It’s a good idea to try to touch base with current and prospective clients as often as possible. Attending international events is a good way to meet as many people as possible without having to spend a fortune rushing from site to site. Consider getting business cards made up with a description of your company in a couple of different languages, as appropriate for the business you’re in.
Written by Amy Fowler on behalf of AMA Events, experts in organizing national and international events.
