If you are thinking of expanding your company to trade in overseas markets, then it is an exciting step. With around £30bn in goods being exported from the UK as of June 2018, you will be joining a thriving international business community. Naturally, the key thing to do it successfully is to prepare wisely for the expansion. By taking the relevant steps to make sure that everything is in place, both in the UK and the new territory, you will be well placed to make it work.
What business finance areas should you think about?
Of course, trading overseas requires you to cover all the essential areas of your business from marketing to logistics. One vital area alongside these is your finances. There is no doubt that trading internationally will impact on your finances, so you need to keep on top of them at all times.
Here are some great pieces of advice to help.
Have a clear plan
To really make overseas trading work, you need to have a clear business plan for the expansion in the first place. This will allow you to look at whether there is a need for your services in the new market and work out if it is financially viable. A well-written plan will allow you to look at the costs involved, the potential returns, and if your company can actually sustain the expansion with the current state of your accounts.
Keep an eye on costs and expenses
Once you have made the move to trade overseas, it is wise to keep a close eye on the costs and expenses involved. This may be from running a satellite office in the new market to simply looking at the costs of sending goods internationally from your base. Make sure that the costs of trading internationally are not running away with you and posing any issues for the whole business.
Know the rules
One big area that anyone who trades overseas should get a handle on is any tax laws or rules specific to any country that you either send goods to or in which you physically operate. Not doing this could see goods confiscated at customs or big fines handed out for missing key reporting deadlines.
Use an online money broker
A great piece of business finance advice for overseas trading is to use an online money broker. Rather than heading to your local bank when making payments abroad or moving money back into your business account, go online to find a specialist company to do it for you. This will help save your company money as these brokers offer better exchange rates and lower fees while also being quicker. It is always best to compare international transfer rates online when you are doing this so that you get the best deal possible.
Look after your finances when operating abroad
If you currently trade overseas or are about to, then it really is essential to keep an eye on your business finances. Good financial management here will not only allow your overseas trading to show clear profits but also help protect your whole business. Hopefully, the above tips have given you a great place to start.