The world has become more open in the past few decades. Today, many American companies are making most of their funds abroad. The same is true with many European companies like Volkswagen and BMW make most of their revenue in their international markets. All of this is attributed to globalization. As such, as a small company, it is important for you to come up with strategies to grow internationally. In this article, we will look at a few tips for running your company globally.
Tax Havens
Corporate taxes are some of the biggest costs of businesses. In the United States and Europe, the corporate tax rate is usually more than 20%. Other countries have a corporate tax rate of more than 30%. This means that if you sell a product for $100, you have to pay the government $20. This is a lot of money. A better option for you is to domicile the company in a tax haven. A tax haven is a country that has low corporate taxes. Examples of those havens are countries like Cyprus, Cayman Islands, and Bermuda. Talking to a consulting company like PageCorp Group can help you lower your tax burden. Also to get estimate of your Sales Tax you can use Sales Tax Calculator .
Outsource
Running a business is expensive. In the United States, the minimum wage in some states is more than $10 per hour. Some states have a minimum wage of more than $15. This is a huge cost burden for any company. It is recommended that you use technology to find ways of outsourcing some work. For example, you don’t need to employ a website designer, content writer, or social media manager. Instead, you should outsource these tasks to low cost international workers.
International Supply Chain
There are many costs when running a business. It is recommended that you reduce most of your costs by creating an international supply chain. The cost of manufacturing an item in China is many times cheaper than that of the United States or Europe. Therefore, we recommend that you talk with many international suppliers, who will you create good quality products at a lower price.
Use Blockchain Technology
In recent years, the concept of blockchain has changed the world. Cryptocurrencies like Bitcoin and Ethereum are the best-known products of the blockchain technology. However, many companies are developing blockchain technologies that can be used with global companies. These technologies help simplify the way companies are doing business and save money.
Money Remittance
Another major cost for doing business around the world is sending money. In recent years, the cost of sending money abroad has come down. It is still expensive to many companies. As a global company, we recommend that you use new methods of money remittance that will be fast and cost efficient. Companies like TransferWise and WorldRemit can help you save money.
Interest Rates Arbitrage
Global interest rates are relatively low these days. This is a good thing for companies because it lowers their cost of borrowing. As a global company, you should strive to borrow money in low-interest rates and invest the money. This can help you save a lot of money in the long term.
In summary, any company in existence today should strive to be international in nature. Using these tips will help you become a more efficient global company.