The First Steps to Becoming a Global Company

The world seems a much smaller place than it did just a couple of decades ago. Globalization has brought with it new levels of competition, though businesses also benefit from the opportunity to reach a much wider range of potential customers. While companies from all around the globe are reaching out to overseas markets, that doesn’t mean that the process is an easy one.

Bridging the Language Barrier 

The most obvious hurdle to negotiations is, of course, the language barrier. Fortunately, those of us who’ve grown up in English speaking countries have benefited from the fact that English is now the global language of business. However, it’s important to remember that this is a continuing process. If you want to start building bridges now, you should make the effort to invest in bilingual staff to operate your overseas sales divisions. From here, you can also solicit feedback from your new customers and learn how to better adapt.

Dealing with Foreign Currencies 

Trading on an international market will inevitably lead to dealing with foreign currencies. There are a multitude of different variables that affect a country’s currency value and, consequently, their purchasing power. Better understanding this may even affect your decision on which countries you choose to initially target. While requesting that all transactions be paid in your native currency is an option, your local pricing strategy may not convert appropriately into other currencies and this may turn away many local customers. Fortunately, a lot of hosting software for e-commerce sites can make this process simple. Online payment services like PayPal can also automatically convert any transactions into your preferred currency.

Understanding Rules and Regulations

You already know the importance of abiding by the latest rules and regulations in your own country. However, it’s unwise to assume that these same rules also apply to other international markets. For instance, if the location of the supplier and customer is different, this could affect which country’s regulations apply. Similarly, you’ll need to sort out payment issues such as the choice of currency and the risk of non-payment. You may also need to take action to protect your intellectual property. It’s highly advised that you seek professional advice from a lawyer in these situations. Any initial expenditure will save you both time and expense down the line.

Each part of the world has their own unique approach to conducting business. If you’re going to be successful there, you’ll need to educate yourself on the differences.