The benefits of an international business presence are more everyday. So, you should have an international business expansion strategy. Here are four ways to cost-effectively achieve international business growth…
4 Ways To Frugally Increase International Business Growth
It doesn’t matter how big or small your business is, or what you sell, it is easily possible to have sell to a global market. In turn your business goal could be to create an international presence.
Brands with worldwide notoriety are not only more successful, but they transcend their industry. Apple is a prime example.
For smaller businesses, it can be a struggle to grow and front the expansion costs due to limited budgets. As a result, many small and medium-sized companies decide to aim lower and think small. And, much of the time, it’s a mistake.
The only way to maintain success is to continue pushing forward and innovate. That does take money. However, unnecessary spending is preventable if you understand where to decrease expenditures resulting in savings.
Here’s how to cut costs and ignite international business growth.
Reduce Homegrown Production
As commendable as it is to invest solely in the local economy and maintain a home base, it’s not necessarily the most savvy financial move. Emerging international markets that are less developed than the United States and they are ‘ripe for the picking.’ Quality of workforce is typically very high and the rates are low.
Nike dominates the retail landscape through production factories in Asia and Africa. They are able to charge less for products while ensuring a high ROI.
When you open operation in a new area, it’s worth localizing everything from your content to your manufacturing processes as it’s generally more affordable.
Trigger International Business Growth … Yet Travel Less
There’s an important meeting overseas you must be in at 5:00am. So, you:
- Buy an airline ticket
- Board a plane
- Travel to your hotel the night before
And rest up so you’re refreshed and ready to go.
As professional as this may be, it is now an unnecessary procedure that could create expenses equating up to to $2,500.00 per trip. Sure, some of this is deductible, since the technology exists to meet face to face without leaving your location.
Thanks to telecommunication channels bosses and managers worldwide can conduct a meeting from a local building or coffee shop, saving thousands per fiscal year.
File Separate Tax Returns
Preparing multiple tax returns is usually stressful. However, it are worth it because you can cut your tax expenses by a greater amount if you don’t combine national and international deductibles.
For example, corporate insurance is typically eligible as an expense globally. But, coverage for your business may be slightly higher in another country, depending on the policy. Therefore, it’s more advantageous to deduct from your tax contributions and save resources. Confused?
The smartest move is to hire professional accountants from individual nations as they are experienced and skilled regarding the laws in their location. If you hire the right accountants and tax attorneys they pay for themselves in what they save you and your company.
Re-Negotiate Existing Partnerships
Contracts are set in stone, but they are subject to change if you can convince the partner. As long as there is advantage for them, the other party should afford you some concessions.
Now that you’re trading internationally, you must deliver the goods and services to the region. The odds are high that you already outsource to a shipping company, which is potential leverage.
Take the initiative to speak with your contact to combine your national and international delivery operations. The new contract should represent an overall reduction in overheads for you, and an increase in the shipping provider’s profits.
Who is likely to say no to a better deal? Go through your contracts to see where this process can be repeated for additional wins and savings.