Running a Global Business Without a Huge Budget: Tips to Make It Happen

The term MNC (Multinational Corporation) usually brings huge international names such as Apple, Samsung, Google, and Microsoft to the mind, but it is now possible for even smaller companies to go global, largely due to the availability of various business technology and the globalization of business in general. Nonetheless, it isn’t easy still by any means and chances are that you will run into a lot of roadblocks during the initial stages. While requirements and suggestions will vary greatly, depending on the nature of the business in question, there are a few key areas which every SME that plans to go global should definitely keep an eye on.

Production: You Should have More than One Supplier

To deal with more than just one supplier doesn’t immediately mean that you will have to increase your budget to accommodate extra supplies. What is advised is that you should divide the supplies you have from a few different suppliers, from preferably different regions. For example, if you plan to start a business in electronics, China is likely where you are going to get your components from, but instead of depending on just one supplier, deal with at least one other and make sure that they have manufacturing units in separate parts of the country.

This is a wise business strategy because, in case of an emergency, where your prime supplier fails to deliver, you can always rely on the others to help you make up for the missing shipment. To have more than one source is a reliable and time-tested strategy for conducting business in general, and global business in particular, where you have limited vision and control.

 

Communication: Get the Necessary Resources for Easy Communication

Communication is the key to everything everywhere, and when your partners and suppliers are sitting halfway across the globe, communication can be a real problem. Branded Bridge Line offers an easy and comprehensive solution to this via their international conference call service that has been specifically developed for businesses with global operations.

The international conference bridge service by Branded Bridge Line allows for everyone from suppliers to customers across various regions in the world to come together and communicate with each other, as and when required.

 

Severing Ties: Prepare to Let Go and Know When It is Time To

A poor partnership can actually hinder your growth, rather than helping it; consider the following to get an idea of what we mean by learning to let go and timing it perfectly.

When you deal with global partners, making them adhere to deadlines and other agreements in the deal is not always easy. For example, if your supplier of tea leaves is sitting in India or Vietnam, you cannot really sue them with any real effect when their shipment arrives almost a month later than it should have. There are international laws that should protect you in such cases, but their implementation is still going to depend on local authorities and they are seldom very dependable!

Instead of getting angry and reacting on the basis of that anger, understand the situation as it is. Was it really your supplier’s fault, or did it get delayed due to natural or manmade circumstances beyond their control? If it was their fault, does it happen frequently or is it a very rare occurrence? Did you suffer losses because of the delay that are big enough to justify the termination of the business contract on the grounds of breach of contract? If all answers to such questions point towards the fact that you have a poor partner, start making arrangements for a replacement first and once that has been achieved discreetly, call your local employees back into the country and inform your supply partner about your decision, backed up by all legal documents necessary.

It might be hard to do, but a bad partnership pretty much defeats the very purpose of having a contractual business agreement in the first place. Even when the supplying company is not at fault, sometimes, moving on from an entire region is necessary if the geopolitical situations point towards an unprofitable business arrangement. There are a lot of foreign markets to explore, so don’t stick to a poor arrangement just because you don’t know better yet. Always be on the lookout for newer and better opportunities.

 

Investment Risks: Do Not be Duped

If you are dealing with an international partner/supplier, do not be duped into making investments in their country without understanding the local laws, regulations, and agreeing with the prospect of such an investment from your own perspective.

Talk to someone experienced in the sector if you can and get their opinion on the matter, but do not invest any significant money based on the words of your foreign partner alone. Even small businesses in the US, UK, and certain other countries have resources that suppliers in the less developed parts of the world cannot fathom, and sometimes, they may try to drain some of your resources. Work with reputed names or go to the grassroots level and deal directly with the manufacturers to skip the middleman.

Of course, a lot will depend on the nature of the business itself because conducting operations globally is not as much of an issue when the nature of your services/products are mostly digital. It becomes a lot more complicated and expensive when you deal in actual physical products. But it is quite manageable today for even small budget businesses with big dreams, as long as they know how.

Take small steps in the beginning until you fully understand and come to terms with the aspects of import, export, cultural differences in between employees, partners, customers, and suppliers across the globe enough, to make a near-accurate estimation of costs. If you give it enough time and manage to find a foreign market that’s profitable to either production or sales, expect the profits to be well worth the initial investment and effort.

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