To pull out all the stops nowadays, you need to go worldwide. Going worldwide enjoys numerous likely benefits for your business, for example, expanded pieces of the pie, high-esteem clients, lower work expenses and lower charges, to give some examples. What's more, in the realm of telecommuters, advanced travelers and virtual everything — including cash — working together universally is not, at this point only for the behemoth combinations of days of old. Organizations of all sizes currently approach global business sectors and their advantages.
If you want to expand your business and worry about the risk factors that may jeopardize your smoothly running business, then don't fret. We've gathered some of the common mistakes most companies make, so you can overcome them.
1. Wrong Reasons for Expansion
Before deciding to expand your business, check that it is being done for the right reasons. Expansion should be seen as a long-term strategy to achieving the company's goal, vision, and mission, and not a way to make quick money. Before embarking on expansion, ask the following questions;
- Does your business have the capability (financial and structural) to sustain growth?
- Is your business flexible to adapt to changes and upgrade?
- Do you have sufficient manpower for expansion?
- Are you expanding just to compete?
2. Lack of Localisation
Any international business knows that not only language, but also price, currency and payment localization is key to success in a new foreign market. A payments strategy is crucial for any growing business who wants to expand to new foreign markets. Managing to navigate the complex world of financial system and cross-border transactions can be a daunting task for any business
Working with payment aggregators like Wallex will streamline the transfer of funds from various payment methods and currencies to your own business, and preferred currency. With Wallex, you will be able to pay and receive money like a local. You can reduce FX loss by avoiding unfavourable rates and fees imposed by Banks and save upto 70% on your FX fees, thereby increasing your net earnings.
3. Poor Recruitment Practices
Expanding your business into international markets can be a great way to diversify your markets and fuel financial growth, while hiring international employees will help you engage best talent. However, an international expansion requires you to deal with many administrative back-office tasks. For example, you’re going to need to pay international employees. This isn’t as easy as it might seem, especially if you want to make sure they’re paid correctly.
Not only will you need to understand the payroll and regulatory laws to pay international employees properly, but you’ll need to have a payroll method that is specifically created for processing in the country you’re operating in, too. With Wallex, payments for overseas employees are made easy, arrive faster, and cost less than PayPal, wire transfers or card payments. You will be able to pay recurring invoices or run payroll with the best possible fx rates using the batch payments tool and make multiple payments in one go. Read our guide on how to pay overseas employees.
4. Lack of Understanding of Local Laws and Regulations
Numerous entrepreneurs never pondered what obliges claiming an organization in the nation, e.g., yearly organization recharging charges, charge consistency, review prerequisites, retaining charge, money controls, and so forth Regularly, when a business person discovers what the prerequisites are, they wish they'd never framed the auxiliary, particularly because there are typically less complex, more financially savvy, choices.
We ran a survey to understand the top challenge of operating in the international market. According to our respondents, legal & regulatory compliance is the most challenging factor when operating in International Markets. International businesses should consider building compliance into their business operations, including compliance with tax, financial reporting, employment, anti-money laundering, payment, product safety, data protection and anti-slavery standards and laws.
When it comes to international payments, no country is the same. Each region has its own risks, but also vast opportunities. It is important to choose the right payment system that is licensed in the local region. Wallex is a fully licensed payment provider built for growing businesses, regulated in Singapore, Indonesia and Hong Kong. Wallex also operates within a very strict framework both for compliance and for the safety of funds.
5. Violating the Transfer Pricing Law
Move valuing laws were set up to end one of the most established expense stunts in the book. The stunt works this way: You structure an organization in a country with a low (or no) charge rate. Your organization in a high-charge country at that point offers merchandise to it at a low value, which produces low benefit in the high-charge country. At that point your organization in the low-or no-charge country offers the merchandise to your clients at an exorbitant cost, in this way catching the majority of the benefit in the low-or no-charge country.
Move estimating laws require related gatherings (e.g., your organizations) to lead business with each other at a manageable distance. In layman's terms, your organization in the high-charge country needs to offer products to your organization in the low-or no-charge country at a similar value it would offer to an irrelevant outsider.
You'd be amazed the number of business visionaries have never known about move valuing and think they have tracked down the best assessment structure ever. No, you are not the first and there are laws against it.
Tips for success to navigate the ever changing economic landscape