Many small businesses dream of having a global business—and until recently, it’s been a challenge for companies to participate in international markets. But there’s been a major shift in the last several years: technology has opened doors for small businesses to compete with enterprise giants. Even if you’re running a company of one, you can access many of the same resources as a Fortune 500 organization. For instance, companies of all sizes run their accounting operations on QuickBooks.
The world is going through a Fourth Industrial Revolution, according to the World Economic Forum. The new technologies to emerge from this change are giving rise to new capabilities. If you’re based in New York, you’re a phone call away from a vendor or supplier in rural India. If you’re in rural Oregon, you can build an online business reaching customers in Europe. Thanks to video chat, you can easily meet your customers and partners face to face.
This global transition has kickstarted several trends, that are creating areas of opportunities for small business owners. If you’re willing to work through time zones and understand the legal requirements of the countries in which you’re operating, you may find yourself with potential areas of expansion that you hadn’t yet considered. Not to mention, international expansion is a way to safeguard your business from economic dips and spikes.
These 3 trends can help you navigate a potential international expansion for your business.
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1. Outsourced credit card processing is making international expansion easier than ever
In the past, payment processing has been a barrier for companies looking to expand overseas. Every country has its own laws for data protection, information storage, and regulatory compliance. That means, your company could be held liable in the event of a data breach or other potential problem.
Using accounting software like QuickBook’s payment processing integrations, you can use a third-party platform to process transactions. Behind the scenes of this software are teams of legal experts and compliance specialists. These individuals are responsible for ensuring that payment processing software is up-to-date, in accordance with all local laws.
For instance, QuickBooks integrates your accounting software with platforms like Braintree, Stripe, Square, and many more, making it easy to expand overseas. As time passes, the options available to you will grow.
With the resources of third-party payment processor, you can expand your business internationally from your local country to anywhere overseas. To learn more about payment processing, check out the following resources on the QuickBooks Resource Center:
- 5 questions to ask when choosing a payment processing service. When you’re choosing payment processing services, you’ll likely be weighing several options. This guide will help you pinpoint what’s right for your business.
- Are you getting the most out of your payment processor?
https://quickbooks.intuit.com/r/getting-paid/are-you-getting-the-most-out-of-your-payment-processor/
This article provides a checklist to help you figure out a payment processor.
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2. International economic uncertainty
The world’s economic future is impossible to predict. But leading analysts say that a recession may be on the horizon. In the United States, city government officials are so concerned that they have begun stashing away money.
While it’s impossible to predict the future, small business owners always need to prepare for a downturn. In a moment’s notice, any unexpected change could happen. The United States, for instance, recently, experienced its longest government shutdown in history. Government workers and contractors may never receive payment.
In the United States, many small businesses rely on the government as their one-and-only customer. Imagine losing 7-to-8 figures in revenue overnight.
Despite what analysts say, a recession doesn’t need to mean doomsday for your business. But economic turbulence should inspire you to take steps. The best way to prevent risk is to diversify your client base. One pathway to diversifying your client base is overseas expansion. By being present in multiple markets, your business reduces the risk of weathering the ripple effects of a single economy.
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3. Mobile phone adoption makes connecting with international customers more accessible
The United Nations says that the mobile phone is a key driver of global sustainable development goals. Governments and companies around the world are investing in innovative tools and technologies to equip people with mobile devices.
New innovation is happening as a result.
Consider the case of Ghana. In Spring 2018, the nation’s largest telecommunications operator, MTN, launched a historic first—an IPO using mobile money platforms. That means, Ghanaians were able to purchase shares of the company using simple text messaging features on their smartphones.
Mobile phones are opening doors to new economic opportunities, enabling more people around the world to participate in commerce—without needing a computer or dedicated internet access.
Consider the case of Atlas Holdings, a technology company based in New York. The company’s leadership team has developed a mobile money product for residents in West Africa. Over time, Atlas has the potential to open new, never-before-seen economy pathways.
Businesses of all types will be able to reach new customers, in creative ways.
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Final thoughts
If you’re thinking about expanding overseas, you’ll want to take careful and calculated steps forward. Economies are changing. New technology infrastructure is emerging. New populations are getting connected to financial markets. Businesses of all types and sizes are finding ways to innovate, discover new customers, and offer up new products and services. Don’t be afraid to get creative—and make sure that you have the right accounting infrastructure to help your business grow.
To learn more about starting up your own business, take a look at this comprehensive guide. And if you’re wondering how sales taxes are impacting your bottom line, check out this sales tax calculator.
This article originally appeared on the Quickbooks Resource Center and was syndicated by MediaFeed.org.
Image Credit: DepositPhotos.com.
