For many businesses, going global is the goal and they rely on the help of financial advisors to do it. However, as any financial advisor will tell you, running an international business and getting into the world of international finance is more complicated than it may first appear.
According to Entrepeneur.com, the following list identifies the six best practices financial advisors should employ when doing business internationally:
One of the best things you can do as a financial advisor is make a thorough and detailed plan. The plan should highlight the business’s short-term and long-term goals. Understanding the potential areas of expansion can help the company seize the best opportunities for growth at the international level. When necessary, don’t be afraid to switch up the business model or even create a new one. Adaptation is key.
2. Consider Compliance
When conducting business outside of the United States, you need to familiarize yourself with the country’s security regulations and business laws to ensure that both you and the company are in compliance with them. Knowing and following the exact rules and regulations can help you avoid any troubles and avoid putting the company at risk.
3. Build an Army
Decide who will be on the team that will effectively launch the business internationally and assist with international finance complexities. Be sure to choose the people that you feel are truly valuable. After building the team, ensure that each person is invested and is working toward the same goals. This can help smooth the transition.
4. Learn Your Risks
Going global is risky, so you need to be ready for what’s to come. Learn about the risk factors involved and be prepared for every scenario that may occur. This can help you and the business confidently handle any of the challenges that lay ahead. One way to help make this step successful is by being honest and transparent with the team.
5. Stay Consistent
Keep the values of the business consistent. Although there may be changes within the business, such as the language used, ensure that the message of the company still comes across the same. No matter the country or culture, you want to be certain that the customers still understand the brand.
6. Do Your Homework
Since the global marketplace is very sophisticated, you need to do your homework. Understand the consumers, and then listen and adjust to local preferences. Going global will force the business to adapt, so be flexible and ready to change.
Benefits of International Business
While there are many benefits of doing business internationally, Dynamic Language, an international leader in translation and interpretation services, identifies seven major advantages:
- There’s new revenue potential. Going global gives the company access to more clients, which can result in increased revenue.
- The company will have the ability to help more people; it won’t be confined to just affecting those in the United States. Going global can, at least in small ways, help change the world.
- Growing internationally can give the company access to more talented employees. There are many people in the world who can help the business grow and, by expanding, it can help you discover those people.
- It can make the company more well-rounded. The company is able to learn new cultures and become more diverse.
- The company will have exposure to foreign investment. Foreign investment can be very valuable to a company, especially if that investment helps the company continue to improve.
- Going global can improve the company’s reputation.
- It can help the company have a more stable revenue source. That way, if the United States is affected by a natural disaster, the company won’t suffer as much because there’s revenue coming in from other countries.
Common Complications of Doing Business Internationally
Since going global isn’t going to be easy, let’s consider some of the common complications that companies may face by going international. One specific challenge is a foreign language. Although Pulse Headlines mentions that employees may run into some language barriers, there are ways around them. The team can hire an interpreter or the members can even learn the language themselves. There are many books and apps available to make that possible.
Other complications may include different cultural customs or differences in business laws. For example, political interruptions could change business or international finance laws and cause a backlash in the international business world. There are ways to navigate these complications as well. Doing research, learning the culture, and staying on top of the latest changes can help the company avoid any troubles.
Lastly, another issue that can arise is any threat to the team’s health and safety. When intending to travel abroad, be certain that the team members visits their doctors and are up to date on their vaccinations. The team should also always stay informed of the potential dangers in other countries and take the necessary steps to avoid those dangers.
As a financial advisor, helping a company go global can be a daunting task, but one that can also be very rewarding. So, if you need help learning how to successfully expand international finance opportunities, just ask Securities Training Corporation for assistance. We’re excited to help you grow!