The international business began to dramatically slump in the year 2000. It led to a remarkable cut back by major international firms.
However, the economy has since rebounded, and there are many opportunities for international businesses. If you are thinking of starting a business you do not have to be very wealthy.
For those who invested in a private pension and are ready to retire, there are many ways to invest the money. Here are some of the ways to join international trade, which is worth hundreds of billions of dollars.
5 International Business Ideas And Opportunities
1. Export and Import
Buying goods abroad to sell at home and selling domestic goods abroad is amongst the oldest forms of international trade. If you are planning to start an import-export business, you should be aware that it entails a lot of preparation.
However, it is a lucrative business if you get things right. For instance, you will need to find a parcel delivery service for products you bring in from abroad.
The company also has to comply with the laws of the nation where you plan to import or export goods. To avoid problems, ensure there are no trade-barriers set up against the nations with which you plan to work.
Another international business in which you can engage in is licensing. This is where there is an agreement to use a brand name or patent another company owns. For instance, a greeting card company can get a license to use images of ‘The Simpsons” or “Lion King” on their greeting cards.
When a company enters into such an agreement, it becomes a licensee. The agreement has all the terms and conditions stipulated, including the use of images and revenue sharing. Keep in mind that you have to stay within the rules.
If you know of any brand from another nation that is popular at home, you may want to license their work. It is a form of international business, which will let you benefit from the brand value of a foreign product.
In some cases, you will want to get exclusive rights to use the brand or product name at home to avoid excessive competition.
This is where a business operates under the brand name of a foreign company. One popular brand that is franchised globally is McDonald’s. When you open a franchise, you benefit from instant brand recognition.
The company behind the brand name is responsible for all the marketing work, leaving you to enjoy all the benefits. Franchising includes services, formulas, and much more. Franchising is an awesome method of expanding abroad.
If you are a fast-growing business seeking to gain a foothold abroad, you might want to consider franchising.
This is where a company will use a 3rd party to do some of the work. The benefits include lower costs and access to great skillsets and experience. It also leads to better scaling of the business’ activities efficiently. Since labor costs in the US can be quite high, most companies will contract part of the work to another company.
When a company in the US outsources to nations like China, it leads to lower costs. However, you can also set up a freelance company that seeks out work, which international companies outsource. There are various areas of outsourcing including programming and accounting. Just ensure you deliver quality each time.
5. Customs Consultancy
If you are knowledgeable about international trade, you can set up a customs consultancy to help importers and exporters deal with the hassle of importation and exporting goods. The regulations change often and sometimes importers and exporters cannot keep up.
Your consultancy will ensure they do not have to pay any fines or have cargo delayed due to misunderstandings about the law. You might not need much money for this but you will need enough to hire a few experts, set up an office, and get the certification. Check what requirements are needed before you get started.