When expanding a global market business into new areas and markets, it’s essential to understand those regions’ various legal and regulatory requirements.
Unfortunately, many businesses make the mistake of assuming that all countries have the same registration and licensing procedures. And of course, this is not always the case! This blog post will discuss six important things your business needs to register for before going global.
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What is a global market business?
In order to be a global market business, you’ll need to meet one of two qualifications.
- The first is that your goods and/or services are traded (purchased by people or sold to people) in other countries other than your own.
- The second is that you purchase and/or sell products and services across all nations around the world.
In other words, once you start selling your products to consumers in another country, you are (usually) considered a global business.
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What is an example of a global business?
There are many global businesses out there, but a few of the most popular include:
- Starbucks,
- Amazon,
- and even KFC (also known as Kentucky Fried Chicken).
These companies function and sell their products in other countries, even though they started in the United States.
What is the purpose of global business?
Basically, business owners start global businesses in order to improve their products, boost their sales and profits, and even impact the quality of life for people worldwide.
However, for many, it can be hard to break through into global selling due to all the items you need to remember, and the costs associated with getting everything set up. That’s why it’s so important to have a checklist of the items that you need to get, and we’re sharing those with you today!
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What are the benefits of global business?
There are quite a few benefits to having a global business! If you’re ready to take the leap, here are just a few benefits that you may have.
More Revenue Potential
When you take your business global, you get access to a much larger base of customers. And, if your product or service is successful, these consumers will buy your products/services, which means increased revenue.
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You Can Help More People
Yes, it’s true that some business owners just want money. But there are many businesses that aren’t all about profits — they want to change lives and help people too.
By offering solutions to different customers, you have the chance to improve their lives too and solve issues that they may have.
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You Get To Learn About A New Culture
In order to make selling in a new country profitable and worth it, you’ll need to get to know the people you’re selling to. In order to do this, you have to immerse yourself in the culture.
By understanding the people in a different country, you’ll get new perspectives on building relationships with customers, business partners, and more. And then, you can use that knowledge to better sell your products and services.
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Exposure to Foreign Investment Opportunities
Have you ever wanted to invest in foreign markets? By starting a business in that country, you can!
By going global, you can learn about new investment opportunities, take bigger risks, and get some other benefits along the way.
However, remember to always read the fine print and make sure to talk to a professional so you can make the best financial and investment decisions.
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6 Global Market Business Items To Get Before Going Global
As you can see, having a global business can be extremely lucrative and rewarding, both in income and happiness. But, it’s important to launch your business globally the right way. Here’s what you’ll need in most countries.
1) Business Name Registration
Every country has different rules and regulations regarding business name registration. In some cases, businesses must register their name with the government to operate legally. Failure to do so can result in hefty fines or even jail time! Therefore, it’s important to research each country’s business name registration requirements before expanding into new markets.
A few online resources can help with this, like the World Bank’s Doing Business project or the US Small Business Administration’s International Trade Administration.
2) Tax Identification Number
Another important thing that businesses need to register for is a Tax Identification Number (TIN). This unique number assigned by the government allows businesses to pay taxes. In most cases, companies are required to obtain a TIN before they can start operating in a new country.
Again, it’s important to research the tax requirements of each country before expanding into new markets. The last thing you want is to get fined or jail time for not paying your taxes!
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3) LEI Code
The LEI code is a unique identifier used by financial institutions to identify businesses. It’s required in many countries for businesses to open bank accounts or apply for loans.
Obtaining a lei code can be a bit complicated and time-consuming, so starting the process as early as possible is essential. The best way to do this is to work with a company specializing in LEI codes.
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4) Business License
Depending on the type of business you’re operating, you may need to obtain a business license. This is usually required for businesses that sell products or services. In some cases, businesses are required to obtain a license before they can start operating in a new country.
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5) Work Visa
If you’re planning on expanding your business into a new country, you may need to obtain a work visa. This is usually required for businesses that have employees who will be working in the new country. Obtaining a work visa can be a bit complicated and time-consuming, so starting the process as early as possible is essential.
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6) Export License
If you’re planning on exporting goods from your home country to a new country, you may need to obtain an export license. This is usually required for businesses that are shipping products or materials across international borders.
As you can see, there are a lot of things that businesses need to register for before going global. It’s essential to research and ensure you have all of your ducks in a row before expanding into new markets. Failure to do so could result in hefty fines or even jail time!
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Time To Start A Global Market Business!
Well there you have it, the six things you need to take your business global! While it can seem daunting, it’s not as hard as seems. In fact, many of these items can be secured at the same time. And don’t forget to reach out to find online resources that can help!
Are you ready to take your business into a global market business? There’s no time like the present!
AUTHOR Kimberly Studdard
Kim Studdard is a strategy consultant and course launching expert. When she isn’t spending time with her daughter and husband, or crying over This Is Us, you’ll find her teaching other mompreneurs how to scale their business without scaling their workload.
