One of the most rewarding aspects of business is testing the waters of the global market. Though the idea of starting a business internationally can be intimidating because of regulations and cultural nuances, the results can be lucrative and unique. Becoming an international entrepreneur brings the opportunity of creating a larger customer base, exposing one’s product to new markets, and creating international connections that add to a business’s abilities as a whole.

The Challenges of International Entrepreneurship

There are plenty of challenges that an international entrepreneur faces, especially when they are starting out. The most immediate issues are maneuvering the laws of other countries, expanding a business internationally, the potential language barriers, and cultural differences.

These issues manifest differently in different countries, and can require local knowledge to navigate. It can also be difficult to keep in touch with business partners abroad, or to manage employees or customers in multiple countries.

Financial Challenges of Starting and Managing a Global Venture

In addition to the above challenges, it is important to understand the financial aspect of starting an international business. Payroll, taxes, and other financial obligations can be difficult to calculate when trying to operate in foreign countries. Consider the difference of exchange rates, different legal requirements, and governmental regulations which may be more complex abroad.

Other issues to consider are the budgeting concerns when moving materials, product, staff, etc. across borders. There are customs duty taxes, and other costs that can add up significantly, unless an entrepreneur takes proper steps to plan ahead.

Strategies for Starting and Managing a Global Venture

There are many techniques for sidestepping the potential looming issues of international entrepreneurship.

Target a Single Country

When jumping into international business, its best to start strategically and cautiously. Evaluate potential foreign markets and target one at a time. Understand the culture, language, regulations, and protocols of each market to more easily make connections, and potentially move into a larger market.

Familiarize Yourself with Applicable Laws

Remember that different countries have different taxes, labor, and business laws. Do your homework and familiarize yourself with these regulations to make sure the venture is legally binding. It might be costly to invest in experienced legal representation in the target country, but it is essential to know and adhere to local regulations.

Partner with Local Companies

Partner with a local company in the target country to get up to speed. Established local companies can help entrepreneurs make connections to government entities, potential customers, and a variety of other resources. Consider finding partners in the country you’re trying to target, or even other countries that you’re in.

Hire a Team of Legal, Accounting and Financial Experts

Hiring a team of knowledgeable legal, accounting, and finance professionals can have a tremendous benefit on the long-term success. Make sure their local knowledge and cross-border experience is up to date, so that proper tax and payroll regulations can be followed.

Develop Accounting Systems to Track Budgets

Budgeting is one of the most important steps in international entrepreneurship. Use specialized accounting software and systems to manage costs and track expenses, such as staff and storage on different currencies. To get an overview of the business, use tools like spend and income tracking that keep language and exchange rate differences in mind.

International entrepreneurship brings a great reward in the form of global resources, customers, and markets. However, successful international entrepreneurs first need to build bridges and gain local footholds in foreign countries. Developing a good strategy, understanding the applicable regulations, and having the right team of experts can lead to a successful venture. International entrepreneurs just need to make sure to plan ahead, be patient and open-minded, and never forget to enjoy the journey.