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7 Proven Tips To Buying a Business Post-Pandemic

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Archives, Global Trade Daily, Special Reports

7 Proven Tips To Buying a Business Post-Pandemic

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When is the right time to buy a business? It’s an important question many people ask themselves for a variety of reasons, and it becomes even more interesting when they’re considering purchasing a business after the COVID-19 pandemic ends.

That leads to a series of related questions. Such as, what types of businesses and locations will represent the best opportunities post-COVID? Which ones will pose the highest risk? Should potential new owners expect to get a decent deal, or would it be worth putting a bunch of their savings toward?

What kinds of companies have these potential owners been dreaming of during their working days? Shouldn’t it be the kind of business they could enjoy, rather than one that would run them into the ground, perhaps causing regrets and a lot of lost money?

Chances are, a lot of people will be ready to sell after the draining pandemic, and here are some tips to help you decide about buying:

1. Decide how much money you want to make. This should be the first question you should ask yourself because of the amount of money you want to make determines what kind of business you are going to buy.

2. Pursue a business you would enjoy. It is always better to be involved in a business that reflects your interests and brings you enjoyment. Ideally, your vocation will be a vacation. We don’t want to acquire a business that requires us to be behind a desk all day long when our passion is to be outdoors.

3. Make a list of all your talents. From the obvious to the forgotten ones. Don’t leave any of them out. If you are proficient at MS Word, Excel, and other computer programs, write it down. If you know how to play a musical instrument, be sure to include it on your list of talents. Take a complete inventory of things you know how to do, which will be important in your search for the business you are going to acquire.

Once I was coaching an individual who wanted to earn additional income because their job wasn’t producing enough money. After we did an inventory of their talents, we discovered that in their younger years they had managed rental properties for their dad. I suggested they start a real estate management business. They did and eventually owned and managed multiple properties, ultimately netting a six-figure income.

4. Select where you want to work. Do you want to stay in the same area where you are residing now, or are you willing to relocate? If you are not interested in relocating, then there is a possibility your opportunities will be limited, unless you decide to work on a national basis by selling products on the internet.

The famous bank robber Willy Sutton was asked, why did he rob banks? To which he replied, “That is where the money is.” The best place to own a business is where there is growth. Cities, communities, and relationships are all either living or dying because nothing stays the same. Things are either going backward or forwards. Stack the odds in your favor; go where there is growth and give the business an edge.

5. Know who you are as a potential business owner. Are you a self-starter who is disciplined, and once you start a project you finish it? Or do you perform better with a partner? I have worked with many people who, even though they were provided with a step-by-step guide for what to do, were not able to implement and complete the program themselves. But if they partnered with another individual, they completed the job. When buying an operating business, you will get not only the playbook of how things are done but employees who know the business and a business that is producing a cash flow from the day you take over.

6. Know your comfort level – out front or behind the scenes? Do you like working with the general public and servicing the general public, or are you more comfortable behind the scenes helping people via emails or telephone? If you are an introvert who feels uncomfortable talking to people in person on a daily basis, then you should not own a retail or service business that requires a lot of personal interaction. I have seen people who enjoyed being a customer in a retail business, then purchased a retail business, only to discover they didn’t like the hours involved, working with individual shoppers, or the back-office duties. They ultimately sold the business at a loss.

7. Don’t get hung up on how and where you will get the money to get started. Once you have determined how much money you want to make, what you enjoy doing, what your talents are, and where you want to live, finding the right business gets a lot easier. Now you have the checklist of wants and needs, and all you need to do is to search out businesses that are for sale.www.bizbuysell.com,www.businessesforsale.com

I have bought businesses with no money down and have started businesses with no money down. Sometimes you may have to borrow money from credit cards or bring a partner on board to provide the money while you provide the work. This is called “bootstrapping” and it is how many people get started.

Or you may want to use what we call “Love Money,” which is from family and friends. Money is not as hard to get as people think, because if the opportunity is good enough you will find the money. Money is attracted to opportunity. Especially after a pandemic. Many owners are tired of operating their businesses and are more receptive to selling out now than before. And as the saying goes, “Luck is when preparedness meets opportunity. And opportunity is always there.”

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Terry Monroe (www.terrymonroe.com), is founder and president of American Business Brokers & Advisors (ABBA) and author of Hidden Wealth: The Secret to Getting Top Dollar for Your Business with ForbesBooks. Monroe has owned and operated more than 40 different businesses and sold in excess of 800 businesses. As president of ABBA, which he founded in 1999, he serves as an advisor to business buyers and sellers throughout the nation. As an expert source he has been written about and featured in The Wall Street Journal, Entrepreneur magazine, CNN Money, USA Today, CEOWORLD, and Forbes.

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In Tough Times For The Unemployed, Franchising Might Be Their Answer

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With millions unemployed and numerous industries struggling due to the coronavirus pandemic, some people who are out of work are considering a new career.

As positions dwindle in the fields they are familiar with, people are finding themselves forced to go outside their area of experience. And for some, that Plan B could be a blessing in disguise.

Owning a franchise has gained popularity in recent years, even in times of economic prosperity, as individuals have looked for a “second act” in their professional life. Franchise sales often do well in a down economy because unemployed people are tired of the lack of control they have in a corporate setting and are ready to become their own boss. Of course, there are also the additional dangled carrots of potentially more income and freedom.

In my world of franchising, pest control, we are seeing some people who have been furloughed in other industries becoming interested in being franchisees. The restaurant, hotel, oil and gas, and airline industries have been hit particularly hard in this COVID-19-caused recession. Some jobs in these and other fields may not be coming back.

But the good news is that many of the people whose jobs have been eliminated or reduced have the skills associated with running a franchise successfully. Those skills span the spectrum from leadership to business experience, discipline, technology knowledge, and communications. For many of these displaced professionals, franchise ownership may be a natural fit.

Becoming a successful franchisee takes hard work and some up-front money. Getting business loans can be tough in today’s economy. Franchise ownership is more attractive to those with a nest egg or a nice severance package that affords them the flexibility to purchase a franchise. It’s also important to note that “freedom” is a relative word when owning a franchise; in addition to long hours while getting the business established, remember that it was somebody else’s business idea, and you have to follow the script of operating the franchise.

But more and more, franchising is something out-of-work individuals with money to risk and a desire to run their own business want to consider. It requires a lot of research and intense due diligence before signing on the franchisee line. Facing life after a layoff and looking for your next move, it’s vital to do your due diligence when investigating a franchise opportunity and to clearly understand what your role will be as a franchisee.

Some of the top benefits of owning a franchise:

Experience is optional. How many times have you seen a job posting that interested you, but the experience required didn’t match up with your work history? You don’t have to worry about that as a franchisee. The franchisor provides the training to help you gain the skills to operate the franchise. A major part of what makes a franchise successful is an easily replicable system.

Minimal startup work. One of the most difficult parts of owning a business comes in the startup stage, which involves, among other tasks, writing a business plan and doing market research. But buying a franchise allows you to skip this often painful stage and hit the ground running. The template is in place, the market research for the region has been done, and the business model is well established.

Risk reduction. When someone decides to buy a franchise, rather than start a business from scratch, they have reduced their risk of failure. For one thing, consumers are already aware of the brand name, and that awareness puts the franchisee ahead of the game. The product and the system have been tested and shown to work, and the franchisee’s access to corporate guidance is a big asset in growing their franchise.

Additional support. Along with training and ongoing advice received from the franchisor, franchisees can get support from other franchisees in the company’s network. Additionally, the company itself does marketing and advertising on a wide scale that by association helps promote the franchisees’ locations.

Help in negotiating operating costs. Typically, someone starting a new business as an independent owner is out there alone trying to negotiate prices for items to get their business off the ground. But as a franchisee, often the franchisor already has relationships with vendors, giving franchisees the ability to purchase goods at discounted prices.

If you’re a displaced worker or executive, the franchise industry may be the opportunity you’ve been looking for. It could make life after the layoff better than you imagined.

_____________________________________________________________

Chris Buitron is CEO and president of Mosquito Authority® (www.mosquito-authority.com), a nationwide leader in mosquito control with franchises serving communities across the U.S. and Canada. Buitron has an extensive background in franchise industries. He was chief marketing officer for Senior Helpers, vice president of marketing for Direct Energy (home services division), and director of marketing for Sunoco Inc., where he supported the company’s 4,700 franchised and company-owned rental facilities across 23 states (over $15B in annual revenues).

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Archives, Global Trade Daily, Special Reports

Myths to Avoid While Creating Startup Businesses in 2021

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There are certain common-lingering myths about startups that might discourage you from starting your own business. Many of these myths are related to the challenges, notions, and facts involved in establishing or running a startup. Owing to these myths, brooding businessman hesitate in giving their thoughts and ideas a physical form. However, all these myths are not true.

Let’s take a look at some of the most common myths about startups that you should avoid in 2021 for entrepreneurs.

Myth 1: Businessman takes a lot of risks

Fact: Businessman takes risks. But that doesn’t mean that they take lots of risks or put themselves in high-risk circumstances all the time. They know how to take calculated risks. If you are not willing to take some risks, you will not get higher returns. Business tycoons might have some good or back luck over time, but they can’t rely on luck to run their business. You might have to take a risk that will not pay off, but do not worry about that. The key to persevering through mistakes is restricting your initial risk.

Myth 2: Entrepreneurs needs a lot of money before starting their business

Fact: According to several studies, investors and venture capital fund only one percent of all the startups. Yes, indeed you cannot start a business without any money, but getting venture capital is not the only solution. Some of the new or small business ideas in India involve applying for a personal loan, business loan, and asking family/friends who are willing to contribute money to their business. You can also opt for bootstrapping strategies which allow in maintaining full control of the startup strategies, avoids time delays, and energy spent in attracting investors as well as retaining maximum equity.

Myth 3: Startups cannot compete against big companies

Fact: Be aware that in the era of startups, actions speak louder than fancy ad campaigns. Your small or new business ideas involve understanding the requirements and niche of your firm. As a startup company, you will not experience the bureaucratic drama that is involved in big companies. This enhances your business agility and you can experiment with the personality of your brand. The two ways with which you can market your company are- establishing your startup for those individuals that fall under the required niche and building long-term relationships with your customers by creating brand awareness. You just need to be more quick and efficient to leave your competitors behind.

Myth 4: You need to be formally trained and educated to start a business

Fact: You don’t need to pursue a business or entrepreneurship course in order to set up a successful startup company. Businesspersons do not need a degree to fulfill their dreams of starting a business. According to a business survey report, many entrepreneurs do not have a college degree. This doesn’t mean that you should not study or go to college. It only proves that one does not need higher education to begin their startup company.

Myth 5: You require a detailed business plan for your startup company

Many entrepreneurs intend to create a perfect business plan. But nowadays markets are changing so rapidly that you don’t know how customers will react to your product or service. There are new technological advancements that might emerge which can significantly alter the business environment. Launch your product, obtain feedback, and move forward to continue your product and business plan.

Myth 6: Startups are only motivated by money

Generating profits is not the only aim for startup companies. Accomplishing a dream is one of the chief motivations of startup companies. Financial stability is their next aim. Financial stability does not mean you have to be wealthy. It means that you can meet your requirements. Leaving a legacy for one’s family and future generations is another motivational factor. Lack of motivation in their current workplace can also inspire people to leave and begin their startup business. Thus, money is not the only motivational factor.

Tips for the new entrepreneurs before starting a new business

-An entrepreneur should have a clear vision. He should be able to create the vision he desires to do in his business.

-Before starting any business, an entrepreneur should prepare a solid business plan, i.e. marketing strategies, microfinance for business, etc.

-An entrepreneur must be physically and mentally prepared for any predicament and should be able to handle it gracefully.

-The entrepreneur should hire people who fit in their culture and share their values.

-An entrepreneur should not stop learning. They can take a look at free or low-cost e-learning resources that are offered by the Hubspot Academy, Udemy, and other such online platforms.

Conclusion

Before starting your startup company, it is essential to understand the difference between startup myths and startup reality. Follow the new business ideas stated above and create a successful business.

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Archives, Global Trade Daily, Special Reports

10 Success Tips for Young and Aspiring Entrepreneurs

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In the digital age, entrepreneurship is more accessible than ever. That doesn’t mean it’s a cakewalk, though. Here are 10 tips for success.

In the digital age, becoming a successful entrepreneur is more accessible than ever before. Anyone with a few bucks and an internet connection can become an Internet mogul if they play their cards right and have the patience and savvy to work the system. Our founder, Eric Porat, took a website from scratch to 70,000 visitors per month in three years and has since sold dozens of websites for over half a million dollars.

That doesn’t mean it’s easy. In fact, it’s far from it. So here are 10 tips for success to get you started.

1. Plan, plan, plan… and plan some more.

There is no substitute for a solid business plan. If you think you’ve planned your business and market strategy out enough, you’re probably wrong. Analysis of your target demographic and competitors is especially important. Also, prepare yourself for any eventuality. Analyze any possible thing that can go wrong with your game plan, and then prepare an apt response. That way, when anything does happen, you’re ready. Keep track of your skills and weaknesses, what you offer, how said product or service is unique, and how you plan on growing your offering once you’ve entered the market.

2. Find a Mentor

Look, you don’t have to have an Obi-Wan or a Gandalf, but going at the entrepreneurial game alone is a Deathwish. Whether it’s a community of like-minded investors and entrepreneurs or a close friend or business associate who is more experienced in the market, having someone to learn from and bounce ideas off of is paramount to success. Learn from their mistakes and successes, so you can minimize the former and maximize the latter in your own endeavors.

That said, always trust your gut. If you’re following a shadow for your entire career, you’re never going to really break out and make it big.

3. Keep Your Marketing Tight

By that, we mean a tight budget. Marketing your business is extremely important, but it shouldn’t cost an arm and a leg. Remember, social media is your friend. Creating your business page on Facebook and founding social accounts on Twitter and Instagram for your business is free, and will also help your SEO. Submitting your website URL to search engines like Google and Bing is another free way to boost your visibility.

We don’t mean you need to be a stinge, but good marketing should work smarter, not harder. Hit the right demographic (there we go with the planning again) and you won’t have to invest in complex or costly paid media campaigns. Strong, targeted email and social media campaigns are much cheaper and more effective.

4. Build a Strong Team

Don’t get the wrong idea, we don’t mean hiring a bunch of overpaid “experts.” Just surround yourself with people who share your vision, folks who you vibe with. Everyone knows that starting a business with your friends typically goes wrong, but you do want to have stuff in common with the folks you work with, at least from an outlook perspective. Also, be open to new opinions and suggestions. You don’t want a bunch of mindless drones, you want a team of individual, critical thinkers.

5. Be Ready for Financial Challenges

Almost every startup hits the ground because of one factor: COST. Duh. Running a business is expensive. So be ready to operate on the cheap, and be ready for every eventuality. Deal with cash flow hits by saving a month’s worth of expenses ahead of time, or by getting creative with how you lower your overheads. As part of your business plan, be sure to give yourself an adequate runway for success. Things like SEO take time. You can’t expect to be turning a profit with an online business three months out, at least not if you’re starting a site from scratch. If you don’t have the cash to survive, there’s no point starting out. And at all costs, avoid DEBT.

6. Take Care of Yourself

Entrepreneurship is a lifestyle, but don’t work yourself senseless. When you’re running your own business, it’s really easy to forget to clock out. The days of 9-5 are long gone for you (if you’re successful), but remember to separate work and play. Don’t let your business take over your life. You may have to put in extra hours in the beginning to get your endeavor off the ground, but in the long run, be sure to watch your time management so you can have time to keep LIVING.

7. Read Case Studies

As an entrepreneur, you’ll be focusing on your business 24/7. So, when you get home and have some leisure time, you might be tempted to play video games, read fiction, or watch TV to relax. Read case studies instead. Read biographies of successful entrepreneurs. Just do as much reading as you can about those who came before you, what they did right, and what they did wrong. It’ll pay off in the end, trust us.

8. Take Risks

Humans are generally risk-averse, but part of being an entrepreneur is being willing to take risks (and knowing which risks are viable and which aren’t). Learn which risks will benefit your business and which won’t, and learn to go for it. Entrepreneurial endeavors aren’t like calculus equations. There is no guaranteed right answer. Sometimes you have to analyze the market and take a leap of faith. Everyone, and we mean EVERYONE, who has ever achieved real success has taken a risk.

9. NETWORK

There is no such thing as too much networking. Never stop networking, even during your free time. Don’t be one of those irritating people who never stops talking about their business, of course, but make connections at all times. You never know where your next lead will come from. You might find a new connection while grabbing a beer at your local bar, on a flight to visit your folks for Thanksgiving, or on a street corner. You might meet your next business partner in an elevator or a laundromat.

This doesn’t mean being annoying and constantly pitching your ideas to everyone. Just be human. Be organic. Connect, relate, talk with, and get to know people.

10. Never Stop Learning

This is critical to success. The market is constantly changing. You should be, too. Starting your own business is a constant process of growth and learning. Teach yourself new skills, from SEO to writing to design to management and presentation. The more you know, the less you’ll have to pay others to do stuff for you, and the more you can understand the inner workings of the market. If you want to get into the entrepreneurial game, you need to be ready to go 110%, and that means signing up for a never-ending learning process.

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Eric Porat is a successful online entrepreneur, investor, and digital marketer with over 15 years of experience in buying and selling websites.

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Archives, Global Trade Daily, Special Reports

5 Solutions to Small Business Money Troubles

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Virtually every small business, no matter its focus or industry, can fall prey to financial issues from time to time. Widespread crises like pandemics can instantly amplify these effects and have left many SMEs in the lurch in 2020.

Over and above the effects of challenging times, entrepreneurship is fraught with difficulties itself. Both experienced and novice business owners face significant challenges, and their nature can vary widely. Arranging funding for start-ups, maintaining cash flow, and dealing with strapped budgets are all part of an entrepreneur’s day to day operational obstacles.

If your small business is facing concerning fiscal challenges, you’ll need to approach them delicately and deliberately with the right mindset. Experts recommend tackling such challenges as they arise, rather than leaving them to snowball into much larger problems later down the line.

Here are solutions to 5 of the most common money troubles facing small businesses today.

Issues with Capital

Banks are becoming increasingly strict and discerning in terms of which small businesses they are willing to risk financing. This has unfortunately left many business owners in a tricky position, forcing them to drastically reduce their capital budgets.

Thankfully, there are many ways to secure financing for small businesses that don’t involve conventional bank loans. You could turn to friends or family members for assistance or perhaps go into business with a like-minded partner who can offer the capital you need to stay operational.

Many entrepreneurs view self-fueled growth models as the least risky and most effective way to operate small businesses. Instead of trying to secure funding to establish your company overnight, focus on your primary customers and offer value-added services to them. Your business will probably grow automatically thanks to word of mouth. However, if you do still require outside funding, it’s recommended that you speak to an attorney to avoid any potential future complications.

Restricted Cash Flow

Most small businesses cannot stay afloat without a certain amount of cash flow. You can perform tasks timeously, send out invoices, and only receive money after a month—if at all. In the interim, you will be left to address all of your business-related costs like salary payments, infrastructural costs, and personal expenses.

The solution in this case is to meticulously plan and budget your operations to maintain cash flow however you can. An effective way of boosting cash flow is requesting down-payments when you receive orders from clients. This money will allow you to address your expenses and keep money aside for unforeseen costs.

You could also request faster invoice settlement terms, as this will buy you extra time if clients are not prompt payers. Additionally, you could approach your vendors and request that they invoice you after 45, 60, or even 90 days. This is a somewhat unconventional approach, but if you’re in good standing with your vendors, it could help you to loosen your cash flow and keep your small business in the clear.

Tight Marketing Budgets

Even if your business has sufficient cash flow, you may have a tight budget for promoting your products and services.

To remedy this, remember that every entrepreneur deals with budget issues from time to time. You can reduce the frequency of this phenomenon by optimizing your marketing efforts. Spend your advertising cash where it will maximize your ROI and use the remainder for other infrastructural costs and marketing experiments. Don’t take risks with your marketing, rather play it safe and simple as you won’t always recoup your costs.

Worryingly Low-Profit Margins

If you’ve noticed a sudden dip in your once-strong profit margins, you’re not alone. Many small businesses are facing similar issues in 2020—especially those who don’t operate exclusively online.

To begin addressing this problem, you should create a weekly or monthly forecast of your cash flow based on your current financial results. Your forecast should include detailed cash flow estimates, such as invoices paid by clients, and financial outflows like vendor payments, salaries, and rental costs.

In this specific scenario, it’s helpful to bear a worst-case scenario in mind. Develop a pessimistic forecast and assess it against your cash flow. If you’re still generating an income, you should be in the clear. If not, however, you will need to find ways to boost cash inflow and reduce outflow until your profit margins have stabilized.

Debt and Loan Defaults

Defaulting on loans can be devastating for your business and your own financial standing. If you borrowed money before the pandemic struck, you might be struggling to repay it now. The last thing you probably want to do is discuss those debt-related issues with others—but that’s precisely what you need to do.

If you fear that you may default on a loan, immediately contact your lender. Approach them with the facts and figures relevant to your situation, and if possible, calculate how much of your loan you can repay, and where you need leeway. They will often be willing to negotiate reduced rates and lower interest-only payments to assist you temporarily.

Alternatively, if you don’t contact your lenders in good time, you may face the bank demanding immediate repayment in full. If you cannot pay, they can repossess your collateral and sell it off to repay the loan. Rest assured that most lenders will appreciate your honesty about your financial situation. It allows both parties to explore more options for solutions and to find a flexible fix that works for all involved.

The Bottom Line

If your small business is facing financial issues, you’re not alone. A huge percentage of SMEs tackle fiscal fiascos from time to time, and not all of them survive.

Your best approach if you are facing monetary concerns is to be proactive and to tackle problems head-on. Don’t wait until they have spiraled out of control or until a bank representative shows up at your door. There are many ways to ensure that your business operates smoothly and continues to generate a profit, even during difficult times.

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Nina Sharpe is a content champion for various outlets, covering various business topics from finance for startups to small business accounting tips.

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Archives, Foreign Trade Zones, Global Logistics, Global Site Selection, Global Trade Daily, Site Selection, Trade Credit Insurance

Minimize Foreign Trade Risks with These 10 Tips

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Does your company follow a strategy to go global? International expansion brings endless opportunities. Statistics show that companies that export boost their productivity by 34% on average over the first year. They are also more likely to survive in the long term when compared to companies with a local focus. 

However, we must emphasize the fact that foreign trading comes with risks. Currency, credit, intellectual property, transport, logistics, ethics… you’ll be dealing with a lot throughout this journey. Being aware of these risks and taking steps to minimize them will ensure the success of your brand’s international trade management.

10 Tips on How to Minimize Foreign Trade Risks 

Make Sure Your Products Are Allowed for Distribution

This is the first thing you need to check: are you allowed to trade with your products in the respective country? For example, the EU has strict regulations that prevent many goods from China from being imported. Each country has its rules, which your business must respect. Otherwise, you would waste a lot of time and resources planning an impossible expansion project. 

You can get familiar with the rules by reading relevant laws and regulations or contacting the customs services.  

Focus on the Legal Aspects of Business Expansion

Each country has its own regulations regarding businesses from abroad. Legislators set the legal framework and conditions for FFcustomers, sales, and particularities regarding the industry. It’s important to be aware of all these details ahead of time. When designing your strategy and drafting the initial contracts, you should make sure you stay within the legal framework of the country where you expand the brand. In addition, you should be aware of potential legal disputes and their solutions. 

Most business owners hire lawyers in their respective countries. A lawyer from your own country can also make connections and give you the details you need.   

Get Shipping Insurance

Everything looks well on paper. You consider the costs of production, transport, marketing, sales, and everything else related to selling your goods abroad. But there’s a risk that business owners often forget: damage during shipping. Items may break or get lost during transport. Your shipment may become a subject of theft or even vandalism. Accidents and contamination happen during transport all the time. If you don’t get good insurance for your shipment, you risk losing a lot of money. 

Proper insurance is not cheap. You should talk to several agencies to get the best offer on international shipments. We recommend using the best finance apps to plan all costs, including insurance over a longer period of time. These apps will help you calculate a decent budget and determine a final price that won’t leave much space for losses. 

Consider All Currency-Related Things

When planning foreign trade financing, you’re guided by the official currency in your own country. You focus on evaluating the risks related to credit, but as most business owners, you might forget about one thing: currency conversions may initiate losses, too. 

The COVID-19 crisis hasn’t been kind in this aspect. In March 2020, emerging-market currencies faced losses of up to 30%. That’s something that nobody could have predicted. However, you can analyze the movement of relevant currencies and estimate potential losses. You might need to work with a financial expert to make these evaluations.  

Evaluate the Risk of Protectionism

Trade protectionism is a policy for protecting domestic industries from foreign invasion. If, for example, a particular country stimulates the domestic flour milling industry, it will impose import quotas, tariffs, and other handicaps on foreign traders. Governments do this because they don’t want foreign products to drop the market prices and get the domestic industries in trouble. 

If you plan for global exposure, you have to learn about these policies. You must take the additional expenses into consideration, so you’ll evaluate a realistic final price. Will it be acceptable for the living standard of the respective country?

Register the Corporate Names and Trademarks

When doing business abroad, you risk violating another brand’s intellectual property rights. You can avoid that by registering your brand’s names and trademarks. If that process goes undisturbed, you can feel free to offer the products on the respective market. 

Consider the Risk of a Changing Market Environment

No market situation is stable and rigid for all times. You will develop a general strategy, which will be based on solid international risk management. But no matter how well you predict potential risks and future circumstances, you cannot be 100% sure that you did it properly. 

In Deloitte’s Global Trade Management Survey, none of the Swiss chief financial officers who participated thought that the global trade environment would become less complex. Only 15% of them said they expected the conditions to remain the same. 

Your company must continuously review the strategy and make the needed adjustments as the market circumstances evolve.   

Evaluate Foreign Ethical Standard

When offering your products on a global market, you should think about the differing ethical standards that you’ll face. For example, Israel has a thriving vegan culture. It might not be a good idea to trade fur there before evaluating the risk of getting your brand dragged through discussions as an unethical one. 

Get well informed about the customs and social conditions in the country where you plan to expand. 

Invest Time and Resources on Collaboration

Business owners often neglect the need to get comprehensive advice through collaboration with foreign lawyers and governmental services. They want to save time and money, or they simply forget that getting insider information is crucial before international expansion. 

You need to talk to experts who will explain the laws and regulations. You might need finance experts from abroad as well. In addition, you have to collaborate with industry insiders who know the market and can help you build a solid network of connections.

Get Acquainted with Foreign Business Customs

You may be used to a direct, friendly approach with a bit of humor in the mix. But in a foreign country, such an approach may be considered unserious or even offensive. Intercultural differences are a major factor in foreign trading success. 

You have to get acquainted with business etiquette when entering a new market. You can find this information online, but it’s best to hire a business advisor from the country in question. You’ll get proper guidance from someone who knows the target region and the communication etiquette in the particular industry. 

The country’s culture, politics, and economy are also important. Learn as much as possible, so you can start and maintain a productive conversation with potential partners. 

Foreign Trade Is a Complex Endeavor

Yes, it will be a rewarding experience for you as a business owner. With the right approach, you’ll take your brand towards substantial growth. However, you have to conduct basic research regarding the risks you’ll face during the expansion. This is a process that requires thorough planning, so don’t rush through it.

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James Dorian is a technical copywriter. He is a tech geek who knows a lot about modern apps that will make your work more productive. James reads tons of online blogs on technology, business, and ways to become a real pro in our modern world of innovations.

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Archives, Commentary, Global Trade Daily, News

Disrupt The Disruption: How Businesses Can Meet COVID-Forced Changes Head On

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Businesses continue to navigate the changes that COVID-19 has wrought on the economy, rethinking how they serve customers, searching desperately for ways to cut spending, and trying to make long-term plans while ensuring short-term survival.

But it’s worth remembering that change that disrupts the economy is nothing new – with or without a pandemic, says Juan Riboldi (www.ascent-advisor.com), an international business advisor, author, and president of Ascent Advisor, a management consulting firm.

“The real issue businesses leaders must deal with is not change,” Riboldi says. “Instead the issue is what can we do so that we and our businesses can benefit from the change that COVID has brought.”

Anyone wondering where to begin should first look inward, he says.

“Since all change starts with individuals,” Riboldi says, “we must learn to recognize and correct negative tendencies in ourselves that keep us from successfully addressing change. A better understanding of these bad habits or tendencies will help us know how to effectively resolve them.”

To meet the changes caused by COVID-19 head-on, Riboldi says business leaders should:

Keep the trust level in your company high. When a manager goes back on decisions, hides uncomfortable news, or plays office politics for personal convenience, others in the organization will begin to distrust that manager. “If you make promises, be sure to keep them,” Riboldi says. “Otherwise you will lose the trust of others as well as their respect, both of which are desperately needed as you manage change.”

Stay focused. “Lack of focus is a main cause for why smart people do dumb things,” Riboldi says. “Being busy does not mean accomplishing more. When we work at a frantic pace, we often make more mistakes.” For businesses, this problem is magnified by the kind of economic uncertainty the country is going through right now, he says. “Companies experiencing  tough times often respond to unpredictable situations by panicking,” Riboldi says. “They try to do more with less, rather than simplifying and becoming more focused.”

Keep employee training on track. Businesses already worry that entry-level employees are deficient in many of the skills needed to do the job, Riboldi says. Many companies respond to economic downturns by cutting training and development budgets. “Doing away with training may provide temporary financial relief, but at a long-term cost on the capability of your workforce,” Riboldi says.

Inspire commitment in employees. The role of the immediate supervisor is essential for fostering commitment in workers, Riboldi says. When a supervisor fails to lead employees in a way that inspires teamwork and collaboration, commitment falters. “The most common problem affecting morale is when supervisors don’t provide employees with sincere recognition for their work,” he says. “Too often, supervisors fail to give heartfelt praise for a job well done. This simple action costs nothing and takes little time to do, and yet it is a crucial component in engaging a workforce.”

Understand the importance of short-term results. Riboldi says most major organizational change efforts fail to deliver the expected results. One of the main reasons for that is a lack of success early on. “Many promising change initiatives become prematurely aborted due to failure to show short-term gains,” he says. “Insufficient attention to short-term results kills even the best strategies and plans.” To be successful, Riboldi says, an organization must balance the short and the long term. “Achieving early wins builds support for pursuing longer term goals,” he says.

“Fortunately, the problems we encounter as we deal with change are both avoidable and curable,” Riboldi says. “We can identify their root causes and replace them with something better.”

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Juan Riboldi (www.ascent-advisor.com) is an international business advisor and principal and president of Ascent Advisor, a management consulting firm. He is the author of the upcoming book, Strategic Transformation: How to Deliver What Matters Most. For over 20 years, Riboldi has been advising leaders at the highest levels of business, education and government on strategy, organization, and execution. His clients include Fortune 50 corporations as well as fast-growing private enterprises. He successfully launched and led three consulting firms, and completed post-graduate studies at Harvard Business School and Wharton School of Business.

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Archives, Global Trade Daily, Special Reports

With Jobs Eliminated Daily, is Now the Right Time to Buy A Business?

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The economy and job market have been on a roller coaster since the pandemic hit in the early part of 2020.

First, the stock market took a nosedive and reached some all-time lows, only to rebound to all-time highs. The same has occurred in the job market. First, we were experiencing the lowest unemployment in years, only to be followed by the highest unemployment since the Great Depression of 1929.

Presently the stock market is rising, but there is still unemployment, and daily you read about major companies that are either laying off or eliminating jobs by the thousands.

If you have lost your job and find it difficult to find another job in an area of your expertise, then you may want to consider taking control of your future and buying a business. By owning your own business, you have more control of your future. You are allowed to use the talents you were using at your old job and apply them to a vocation that will allow you more flexibility and income.

The pandemic has created chaos in all areas of our daily lives and business, but it has also created lots of opportunities, too. Remember, overall nothing has really changed. People still need to eat, shop, communicate with each other, travel, vacation, read, sleep, etc. The only thing that has changed is how we will do these things after the pandemic is over, and it will be over eventually. Our world will be different just as travel and security have changed since 9/11, but we will still continue to live and thrive, and life will go on.

Buying a business is the quickest and least risky way to get into business, because when you buy a business that is already operating with employees and customers you have a cash flow from day one. If you can’t or don’t want to buy a business, you can start a new business. And in today’s world, if you want to reduce your risk, you may want to consider buying a franchise. A franchise is a business with a proven track record in the industry of which the franchise specializes, and all you have to do is follow the business formula the franchisor provides to you.

If you are really passionate about a certain business idea or concept, then you can start your new business from scratch. Either way, whatever option you choose you will be in control of your future more so than what you would be if you were to get another job – if another job is available.

As I was taught many years ago and live by today: “If it is to be, it is up to me.” Maybe there is a business calling your name now.

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Terry Monroe (www.terrymonroe.com) is the president and founder of American Business Brokers & Advisors. The author of four books, he most recently published Hidden Wealth: The Secret to Getting Top Dollar for Your Business, with ForbesBooks. Monroe is a professional intermediary, consultant, and market maker for privately-held companies and has been involved in the sale of more than 800 businesses. In his 35-plus years of service, he has owned and operated more than 40 different businesses. At American Business Brokers & Advisors, he serves as a consultant for business buyers and sellers throughout the nation. As an expert source he has been written about and featured in The Wall Street Journal, Entrepreneur magazine, CNN Money, USA Today, CEOWORLD, and Forbes.

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Archives, Global Trade Daily, Special Reports

The Struggles of Small Business Don’t Bode Well for the Overall Economy

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The year 2020 can’t end quickly enough for most small business owners.

Across the country, the pandemic forced many of them to close their operations temporarily – or permanently – and the continued economic uncertainty threatens to kill the ambitions of entrepreneurs who planned to launch businesses but now must put their dreams on hold.

None of that bodes well for the overall American economy, says Andi Gray, president of Strategy Leaders (www.strategyleaders.com), a business consulting firm.

“Small businesses make up 50 percent of the gross-domestic-product and also employ half the workforce,” she says. “What happens to them determines what happens to the overall economy. We as a country cannot afford to fail them.”

Gray points to the 2008-11 banking crisis as a disturbing example of how a national crisis can sabotage entrepreneurship. In 2008, for the first time, the number of business starts fell below the number of business closures.

“In other words, more businesses were killed off than were launched,” she says, ”and it wasn’t a one-time event. The problem continued on for years.”

The ripple effects? By 2009 small business contributions to GDP fell rather than grew. By 2010 the economic contribution gap between large and small businesses widened four-fold as small businesses struggled to keep up with their large corporate competitors. People lost their jobs, exports dropped, taxes fell and economic opportunity disappeared as entrepreneurs fought to recover. It took over five years for the small business community to get back on track, Gray says. But the damage was already done. By 2015, the U.S. was ranked 12th among developed nations in terms of startup activity.

She worries such lingering effects could happen again – and be significantly worse this time.

“Today’s COVID crisis is far larger and deeper than the 2008 crisis,” she says. “I would not be surprised if it takes far longer than five years for the small business community to get back to producing GDP and employment numbers we took for granted at the beginning of the year.”

In the meantime, small business owners hit hard by this latest recession must find ways to weather the storm. Gray offers a few suggestions for how they can do that:

Stay energized and focused. The single biggest determinant for survival of any small business is the commitment, ambition, and drive of the owner, Gray says. “If you are feeling worn out, take time off to recharge,” she says. “Keep your eye focused down the road, on what’s way ahead, and don’t waste too much energy and sweat trying to control what’s happening right in front of you day-to-day.”

Take care of the finances. If money is in short supply, investigate sources of capital. Put together a bankable plan that justifies increased investment and provides guidance on how best to use funding to recover, expand and weather future challenges, Gray says. “Talk to your banker, the SBA, reputable SBA lending consultants, and private investors to find out what kinds of capital might be available,” she says.

Figure out how to play the hand they were dealt. Small business owners need to get creative and innovative, Gray says. “Rebuild as you protect cash flow,” Gray says. “Find suppliers to replace the ones struggling to perform. Rethink your business model and evaluate customer viability.” In addition, look for new markets to add size and profits, implement processes to cut out waste, and transition more and more customers to internet communication and ecommerce buying solutions. “Decide what size business will be right for you in the future and layout a plan to get there,” Gray says.

Pay attention to employees. As scared as small business owners may be about what the future holds, many of their employees are even more frightened. “After all, you have the resources of your company to use to build solutions,” Gray says. “Employees who live paycheck to paycheck may be running out of options and wondering how long they can hold on – or how long you’ll be able to let them hold onto their much-needed jobs.”

“The good news is that small business owners are known for being nimble, flexible, and resourceful,” Gray says. “Many of them are finding new opportunities by solving problems that didn’t exist, or weren’t priorities, at the start of 2020.”

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Andi Gray is president of Strategy Leaders (www.strategyleaders.com), a business consulting firm. Gray’s career started in sales, marketing and new business development at Xerox, American Express and Contel. Gray earned an Executive MBA from Columbia University while conducting research on success and failure drivers for entrepreneurial businesses. Gray writes a weekly column called “Ask Andi” in which she provides practical advice to business owners. She also authors a monthly column in Chauffeur Driven Magazine. Gray is also the co-founder of the networking group BOHCA (Business Owners Hemp and Cannabis Association), where she helps industry-specific owners grow their business through strategic planning.

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Archives, EU Trade, Global Trade Daily

New report by Nexus Global Reveals State of Business Confidence in Wales Amid COVID-19

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Businesses in Wales are most assured about launching new products or services, and least confident about hiring new employees.

·Sectors hit hard by COVID-19 are the least confident including leisure and sport and travel

·Law is the most confident sector in the UK

The current pandemic has thrown drastic obstacles in the way for UK businesses. With a total business confidence score of 91.89 out of 190 in Wales, these figures show just how uncertain businesses feel at present – according to a new, Business Confidence Report by Nexus Global.

Nexus Global surveyed senior managers in businesses across the UK to determine how confident they feel at present regarding the current economic climate. According to the findings, businesses are most assured about the overall health of their business, yet least confident about the health of the country’s economy.

To determine the figures, respondents were asked (on a scale of 1-10) how confident they feel at present regarding the following aspects. The results from Wales are as follows:

The South West of England ranks 8th in the UK for overall confidence

From a regional point of view, businesses in Northern Ireland are the most confident about the current climate, scoring 102.3 out of 190, nearly 10 points over the UK average. Whereas businesses in Scotland are the least confident by scoring just 83.8.

In Northern Ireland, businesses felt most confident about the happiness of employees, but least confident about the overall health of the country’s economy, this again is unsurprising given the current circumstances

Commenting on the report findings, John Westwood, Managing Director, says: “It is by no surprise to see business confidence at a low during such an unsettling and turbulent period, during which the UK economy has suffered its worst-ever decline. 

Looking forward, business confidence levels will be a key factor to influence the pace of consumer spending once lock-down measures continue to ease. This change in behavior will need to see businesses adapt if they stand a chance of seeing growth.”

For more information follow the link to click through to individual sectors to discover more in-depth information on the current climate and future predictions.

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Nexus Global IFA network was founded in 2011 to bring compliance and regulatory support to financial advisory firms.

Nexus Global is presently the only IFA network to have gained Network Membership status with The Federation of European Independent Financial Advisers (FEIFA). Nexus Global – Registration Number 10465.

The RIA firm, Blacktower Financial Management (US) LLC is registered with the Securities and Exchange Commission (SEC File # 801-111088) in the United States of America.