Fox Small Business Center contributor, Cindy Vanegas talks to international business expansion expert and Co-Founder of Nair & Co., Dr. Shan Nair on advice for small businesses looking to expand
Fox Small Business Center contributor, Cindy Vanegas talks to international business expansion expert and Co-Founder of Nair & Co., Dr. Shan Nair on advice for small businesses looking to expand overseas.
1. Tips for Expanding Your Business Internationally | Fox Small Business Center Page 1 of 6 Fox News Fox Business Small Business Center Fox News Radio Fox News Latino Fox Nation Fox News Insider Register Login Search Small Business Center Search Small Business of the Day Young Guns Conferences & Events Home Starting a Business Marketing & Sales Finance & Accounting Legal & HR Technology & Web Entrepreneurs Video Business on Main Tips for Expanding Your Business FOLLOW SMALL BUSINESS CENTER 12.6K followers Internationally Like 5055 likes. Sign Up to see what your friends like. Written By Cindy Vanegas Published February 14, 2012 FOXBusiness MORE STORIES Franchises You Can Start for Under $100K in 2012 Why Can’t You Set up Shop on Facebook? Ten Free Things to Boost Your Marketing Today When Life Stinks, Clean House Show More @fbsmallbiz Meet @Charmed1012, our small business of the day http://t.co/NI8I4kjO #mysbc @fbsmallbiz Tips for Expanding Your Business Internationally http://t.co/qoPL5k1F @fbsmallbiz Meet @jwl43, our small business of the day http://t.co/UNTHkjUI #mysbc @fbsmallbiz Meet @spartangroupllc, our small business of the day http://t.co/RiXewD8I #mysbchttp://smallbusiness.foxbusiness.com/starting-a-business/2012/02/14/tips-for-expanding-yo... 2/16/2012
2. Tips for Expanding Your Business Internationally | Fox Small Business Center Page 2 of 6http://smallbusiness.foxbusiness.com/starting-a-business/2012/02/14/tips-for-expanding-yo... 2/16/2012
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4. Tips for Expanding Your Business Internationally | Fox Small Business Center Page 4 of 6 A year and a half ago, David Greenberg decided to expand his in-home tutoring business, Parliament Tutors, beyond its U.S. borders and into London, Paris, Toronto, Montreal, Shanghai and Tel Aviv. The young entrepreneur, who was looking to capitalize on international students desires to study in the U.S., embarked on the expansion full throttle. "We felt like cowboys and were just trying to make things work and then deal with any related issues," recalled Greenberg. But as the business grew both domestically and internationally, Greenberg realized that some added planning would have made the expansion more successful. "I wish that I had made a website for each country instead of one website for our whole international operation. I believe I would have had more success had I focused on fewer locations and spent more time creating bilingual sites with content catered to the specific needs and culture of each specific country." International expansions often draw one of two extreme reactions from small business owners: nearly impossible or incredibly easy. While crossing borders to expand business is not the right decision for every business owner, research and planning can help entrepreneurs navigate foreign waters so they arent faced with a big surprise well into the process. One of the most obvious advantages to entering a foreign market is a new revenue stream. "When a small business owner expands internationally, it becomes less dependent on the ebb and flow of one particular countrys economic cycle," said Shan Nair, an expert in international expansion and owner of consultancy Nair & Co., "This helps the business owner build up a profitable alternative revenue stream." Darron Burke, owner and president of Burke Brands, expanded his coffee growing and roasting company into South Korea as a way to protect his business. "We learned that international expansion can help us hedge against inflation and a weak dollar here at home in the U.S.," he said. But just as entrepreneurs can protect themselves against currency fluctuations through an expansion, they also enter into a new banking system that can create difficulties when moving money around. "Banking in different countries can be a challenge," warned Edward Trieber, CEO of human resources consulting firm Harris, Rothenberg International. "You may not be able to merely pay by having a bank account convert currencies for you as that may prove to be expensive." Another major expense that is often overlooked is taxes. "U.S. businesses are generally taxable on their worldwide income. Consequently, if they also have to pay tax on their income in the foreign country, they would have to pay tax there and here," advised Steven Hagen, international tax attorney at Harper Meyer in Miami. "To avoid that, the U.S. gives U.S. businesses operating abroad a reduction against U.S. tax for the tax they pay abroad [the U.S. foreign tax credit]. However, there are many exceptions and hoops to jump through in order to qualify."http://smallbusiness.foxbusiness.com/starting-a-business/2012/02/14/tips-for-expanding-yo... 2/16/2012
5. Tips for Expanding Your Business Internationally | Fox Small Business Center Page 5 of 6 Labor laws can also vary overseas. "It is absolutely critical that a small business owner creates a country compliant employment agreement that follows the guidelines and laws of the country governing the employment in order not to be wrong footed if they end up in an employment court being sued by a disgruntled employee," warned Nair. Of course, banking, taxes and labor laws are often an afterthought to the challenges of communication. "The language issue has been interesting and a challenge. Our brands are based on slang, and obviously slang in Mexico is different from slang in the U.S.," said Ted Scofield, COO at Icebreaker Entertainment. Scofield and his wife are expanding their consumer products company into Mexico and the European Union this year. Entrepreneurs will also need to consider if they are fit as owners for such a major move. Burke, who moved his coffee business into South Korea, warned: "You must have a lot of patience, understanding, a strong will to succeed and a good exit strategy in case things dont go as planned." RECOMMENDED STORIES ALSO ON THE WEB Doing What You Love and Selling it 9 Ways to Start Earning Extra Money on the Side (MoneyNing) How Our Names Determine Success at Work The 5% Money Management Rule (DailyFX) Hiring Tips and Tricks in a Chaotic Job Market Home insurance: You may be in the doghouse if your dog Title-Only Promotions: How to Stay out of Legal Trouble is a blacklisted breed (InsuranceQuotes.com) Last Minute Tax Tips for Small Business Owners Hate When Companies Don’t Provide Feedback On Job Why Your Employees Dont Like You Applications? StartWire Is For You. (TechCrunch) FBI warns of new banking scam (Bankrate.com) Outlook 2012: Prospects for Growth in the Year Ahead (Merrill Lynch: Wealth Management) [whats this] SHARE THIS ARTICLE NEWSLETTER SIGNUP Sign up for free e-mail news alerts from FoxNews.com and FoxBusiness.com. 29 1 Like Enter Your Email Address Sign Up 1 Financial Stock for the The Hunger Epidemic: Consumer Financial If Republicans Are So Most Highly Skilled Hobo Foreclosure activity up More Chinese Cities Halt Next 20 Years 300 Children Die Every Protection Bureau Boosts Great For Business, Why in History Makes Living 3% in January Apple iPad Orders: Hour From Malnutrition as Its Budget, Oversight Does Silicon Valley Off Ideas Borne From Reports Universal Forest Products Worlds Poor Cut Back on Duties Support Democrats? Couch Surfing Mortgage delinquencies, Shares Jumped: What Food foreclosures fall China Anti-Monopoly You Need to Know Rick Santorum: An Tech Billionaire Reid Home-Based Mary Kay Bureau Looking Into Oscar Nominations 2012: Ordinary Guy with Hoffman: College Is Sales Director Sees Sales 30-year mortgage holds Google/Motorola Deal Processed Food Stocks: Can ‘The Tree of Life’ Win Average, Uncontroversial Worth the Cost, Just Be Soar Despite Economy at record low Kelloggs Announces Best Picture? Taxes Smart About It U.S. Eyes Growing Global Purchase of Pringles for A Day in the Life of a Delinquencies, Cooperation on Satellites $2.7 Billion The Greek Protesters A Few Basic Tax Terms Zbigniew Brzezinski Freelance Writer foreclosure starts drop: May Be Right; For Now, That The Man Doesnt Gives Obama’s Foreign MBA Europe Stocks Trim Investing 101: 9 Austerity Is Bad Want You to Understand Policy a B+ Pros and Cons of Losses After U.S. Econ Potentially Undervalued Economics Working From Home Business owners tap Data and Technically Oversold Is Corporate America Too Dear Walmart, skills to run nonprofits Stocks Occupy Wall Street Group Focused on Profit McDonald’s, Starbucks: Entrepreneur to Rubber Wholesale Inflation Takes Offers Detailed Critique of Margins? How Do You Feel About Duck: Youre the One Biggest Jump Since July More Good News Out of Volcker Rule Paying Your Employees the Jobs Market Why Zynga Will Never Be So Little That Most Of Jeremy Lin: Wheres The Great Again Them Are Poor? Indian Version? President Obama Touts ‘Onshoring’: Is Made in America Back?http://smallbusiness.foxbusiness.com/starting-a-business/2012/02/14/tips-for-expanding-yo... 2/16/2012