3 Easy Ways to Take Your Business International
Ready to take your business international? Operating an international business may seem daunting. Yet, if you are already operating a successful domestic company, you are in a good position to launch internationally.
According to the Small Business Administration, two-thirds of the world’s purchasing power is in foreign countries. Here are three relatively easy ways to increase your business’s presence and profits by entering the international market.
3 Easy Ways to Take Your Business International
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Use an online marketplace
One fairly easy way to connect to foreign consumers is through online marketplaces like Alibaba, a Chinese e-commerce platform. Alibaba provides small businesses with access to international markets through internet technology and infrastructure. U.S.-based online marketplaces that can provide businesses with international market access include Amazon, eBay, and even Craigslist. Foreign and domestic platforms have pros and cons associated with them. For example, some producers and buyers have had issues with counterfeit goods sold via online marketplaces. You should determine the best platform for your business by considering factors like the platform’s reputation, performance, and cost in the same way that you would select any other service provider or business affiliate.
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Work with a foreign distributor
Similar to online marketplaces, foreign distributors are intermediaries that introduce your business to foreign customers. A foreign distributor relationship can be even more advantageous than an online marketplace presence because the foreign distributor can also market and service your product. Think of the distributor as your company’s local representative. You can use a local branch of the U.S. Department of Commerce to help identify reputable distributors where you want to do business. Once your business has found a distributor, work with an attorney to negotiate an effective distribution agreement that at least addresses pricing, sales regions, quotas, and intellectual property rights.
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Enter into a partnership
Last but certainly not least, a partnership may be the best way for your business to grow internationally. Many multinational corporations use partnerships to enter foreign markets. Not to worry, your business does not have to be a Fortune 50 to set up a foreign partnership. Partnerships can take different forms ranging from collaboration agreements to joint ventures. All you need to do is research the target foreign market, identify a suitable business partner in that market, and then agree on the terms of the partnership arrangement. International partnerships are well suited for businesses that need to leverage supply chain and manufacturing capabilities. Additionally, a partnership may be one of the only ways to penetrate a market that is closed to foreign businesses.
The above-mentioned points are just a few ways to grow your business internationally. Other means of growing internationally can be as simple as selling directly to foreign consumers or as complex as building a foreign division. Small and medium size companies should and can compete internationally if they want. There are government resources that provide helpful information on how to successfully enter the international market and skilled professionals who can facilitate international business transactions.
Dorcia Carrillo manages a business and corporate law firm, the Law Office of Dorcia Carrillo PLLC, where she guides clients from entrepreneurs to executives through the intersection between business deals and legal documentation. Dorcia likes helping growing businesses with practical legal advice and workable solutions. She is a New York Giants fan and ardent supporter of the Alzheimer’s Association.
