UHY Dawgen, member
of the global accountancy network UHY, introduces an essential guide for companies planning to set up international
sales and operations.
The guide is available in Issue
27 (pdf) of International Business;
UHY’s twice yearly look at the latest trends in business across the globe.
The
guide provides comprehensive advice to companies – whether large or small – on
all aspects of accessing today’s global markets, and a key focus for this
edition is why businesses should take the plunge and go international.
“Governments around the world have recognised
that facilitating cross-border trade is crucial to tackling the recession and
putting the world’s economy back on track, and they have made major efforts to
make it easier to do business internationally,” says UHY chairman Ladislav Hornan.
“Those businesses that are keen to take the
plunge recognise that expanding to new markets creates a huge opportunity to
secure long term growth and maximise profits through economies of scale and by
becoming less dependent on the fortunes of any one economy.”
“Economic research consistently shows that
companies which export to any country, in any financial climate, perform better
than those which do not, and that has certainly proved true in this latest
recession.”
Dawkins Brown, Managing Partner, UHY
Dawgen, a member of UHY comments:
“Of course expanding your business abroad is a big step. Businesses looking to
succeed can choose to do so with the help of our UHY network of professionals
who can give extensive practical support and advice during the entire process.”
“UHY Dawgen and
the UHY network have extensive experience and
connections in taking companies through the different steps involved in the
internationalisation process, from establishing in-country business contacts to
researching the potential market, to addressing operational and trading issues
and potential risks.”
Other
areas covered by the guide include:
- How to get started – from
initial research to planning and structuring the business
- Advice for companies on
identifying their niche and how to exploit it in new international markets
- Risks and challenges for SMEs
expanding internationally
- Tips on supporting the key staff
that will help make the company’s international expansion a success
- An overview of the one-stop
shop of advice and support that UHY’s global presence can offer, included
dedicated International Desks working in close partnership with companies
in their home markets
UHY points out that competing overseas usually
involves greater risks than operating purely domestically, and requires a
detailed understanding of uncertainties such as currency prices, payments,
regulations, cultural matters, market structures and protocols. However, the potential benefits of a
successful presence in international markets can hugely outweigh the risks of
expansion, with successful international expansion helping businesses achieve:
• Increased growth
beyond what is possible domestically – leading to economies of scale, such
as larger production runs that reduce costs
• A competitive edge – exposure
to intensive competition, new products and ideas, more efficient technologies and
better working practices increase the company’s ability to compete
• Greater sales volume
– translating into higher earnings, especially where margins in some
markets exceed those in the domestic market, thereby increasing resilience of revenues
and profits
• The ability to spread
risks – while product sales in the home market may be in decline, those in
overseas markets may be booming
• Higher profile and
brand awareness – leading to increased reputation with existing customers and
improved staff morale
• Spreading the
exchange rate risk – for example, if a business does most of its trade in
US dollars, it may want to start trading with Japan to spread the exchange rate
risk between the dollar and the yen
• Increased commercial
lifespan of products and services – increasing returns on investment in
research & development.
UHY Dawgen and the
global UHY network are ideally placed to help businesses assess and exploit
global market opportunities, and minimise risks. Through UHY’s global presence
across 270 business centres in 86 countries, UHY member firms are able to
provide the on-the-ground knowledge and market insight which can be crucial for
success.
The full content of the above articles can be
viewed on www.uhy-ja.com
To
learn more about the services and capabilities UHY
Dawgen can
offer, please contact DAWKINS BROWN, Managing Partner, at:
dbrown@uhy-ja.com.
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