Do Business Internationally
by Mike Brown, CEO, Euronet
Yes, the world of commerce is growing smaller, thanks to ever-more-sophisticated communications networks and growing numbers of multinational corporations. But before you start thinking about whether your company is ready to expand into global markets, ask yourself this question: Are you ready to manage a multinational company?
It’s easy to think that on-line resources like eBay, Facebook and other technologies can expand your reach across borders and allow you to tap into potentially huge markets once considered unreachable. For many small-scale operations, that’s true. But to maintain a substantial international profile, a business needs physical assets in other countries, and the calculus for success is complex.
The costs of international travel, overcoming language barriers, addressing cultural and ethical differences in the way business is done— this myriad of factors can quickly conspire to erase the perceived sales gains of entering foreign markets. Even things we take for granted in the U.S.—like a stable, consistent electrical grid to power offices or operate products we sell—can be a roll of the dice in some countries.
Here’s a few things you may want to consider :
• Throw out the assumption that business in other countries is conducted the way it is in the U.S. It isn’t. And there isn’t one “overseas” model: Approaches to business vary from country to country, so assess business practices in each potential new market carefully. Don’t be the Ugly American. Remember that cultural norms and business etiquette varies from one country to the next; never assume your new clients will adhere to—or even understand—the American model. For example, with the EU and Euro Zone monikers in the daily business press, it is often easy to make sweeping generalizations and lump all European countries together. Each is very much different in both regulations and methods to do business.
• Talk with executives from U.S. companies doing business in countries you’re looking at, and don’t forget that the Internet is a rich source of nation-specific information.
• Your product or service is unlikely to fit the needs of an Asian customer just as they would a European client. Get to work understanding the true nature of demand, because it isn’t universal.
• Don’t forget the impact of pricing. What’s affordable in a developed country might be out of reach financially in the Third World.
• Get a grasp of tax structures and currency fluctuations in other countries.
• Have you assessed the true costs of shipping to ensure secure delivery?
• Sales are great, but they don’t mean much without collections. How is the money going to get to you? The U.S. relies heavily on plastic for retail and some wholesale purchases; most other nations, not so much, and the costs of wire transfers need to be fully factored in.
• Stay up on the news. Political unrest in any one market can wreck the most carefully crafted foreign strategies. Don’t get surprised by the headlines from places where you’re doing business.
Remember, too, that even if you’re a small business with global-market aspirations, other resources are available. The State Department’s Office of Commercial and Business Affairs provides support for U.S. companies doing business overseas, and state governments offer assistance through their departments of commerce or economic development, as do trade associations representing many sectors. With this background information, go to the country and look and see and smell it for yourself. Your business nose should be followed, not ignored. Remember, if it smells fishy, there is a dead fish somewhere close, and you don’t want to take that home as a souvenir! 
