Running a successful business can be a complicated task. You’ll need to react to evolving market conditions and form strategies to keep the organization healthy in the short and long term.
The challenges might be even more considerable if you’re doing business across international borders. Let’s look at a few of the most salient ones for 2024.
Challenges that international business might face
Four challenges stand out as worthy of our attention.
November saw a slide in inflation that took many by surprise. Nevertheless, historically, inflation remains high – and it’s excruciating in some industries. The accuracy of your cash-flow forecasting will be critical, as will the quality of your pricing strategies.
The UK’s productivity languishes behind that of its major rivals on the continent. One thing often blamed is the rise of hybrid working after the pandemic. Creating a consistent policy around working from home will help you ensure you draw in the best available workers and retain them in the long term.
Buying and selling in many different territories can complicate your tax affairs very quickly. You’ll need a strong understanding of your obligations in your trading countries. Without this understanding, you put yourself at legal risk.
At the same time, we want to avoid paying taxes unnecessarily. International double taxation, which sees a business tax on the same income twice in different territories, can be avoided – but only through an informed strategy. By enlisting the right expertise, you can devise that strategy. In so doing, you’ll minimize your obligations and drive up your profitability.
Supply chain risks
Businesses with complex supply chains face risks of a different kind. If one of your suppliers is disrupted, will your operations be able to cope? Or will your business grind to a halt?
We might suppose that the disruptions during the COVID-19 pandemic are unlikely to be repeated – but by maintaining close links with your suppliers and diversifying them, you’ll make your operations much more resilient.
How to manage international business difficulties
So, how can we cope when something goes wrong? The best answer involves preventative maintenance. Bring in outside expertise to assess the quality of your operation. A business auditor, for example, might provide an impartial perspective on your affairs and offer solutions. In some cases, they might identify potential problems before those problems manifest.
The same might be said of lawyers, emergency plumbers, and other professionals. If you forge relationships with them now, you can rely on them when the situation calls for them.