4 Strategies to Help Your Business Boom in Foreign Markets

RILIND ELEZAJ | February 14, 2019

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Taking your small business to the international stage can be very challenging particularly considering your small budget, limited international exposure, and economic uncertainties in different parts of the world. That is not to mean that you should limit your market to your local population. Technological advancements, as well as the emergence of social media, have created a great platform for ambitious small business people like you to step on in their pursuit of international greatness. All you need to do is strategize and prepare your business well for the global audience. In this article, we look at the four most viable strategies that you can adapt for your small business so that it can boom globally. You generally have two investment options: investing big in one country and investing small in multiple countries. Each of the strategies has its advantages and drawbacks. Investing all your money in a single international market will enable you to effectively compete with the dominant local and international companies and, if things go as planned, that one branch can easily grow and spread to other markets. The major drawback to this strategy is that if things go south, your entire international investment will come crumbling down.

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The Real Deal

Considered the bible of New York City real estate, The Real Deal has become mandatory reading for everyone in the industry. Since 2003, TRD has provided up-to-the-minute industry news and in-depth reports and profiles in our 65,000-circulation monthly magazine and on TheRealDeal.com, which receives more than 1 million unique visitors per month. Our content is available across multiple platforms, including a mobile app available to iPhone, iPad and Android users alike.

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Small Business Credit Cards Business credit cards are the most preferred option of startup financing for small businesses. As a result, small businesses are highly targeted by business credit card issuers providing them multiple offers, unique benefits, and applications. Small business credit cards give small business owners easy access to a changing line of credit and a set of credit limits for making purchases and withdrawing cash. Business credit cards are safe, convenient, and a great alternative to startup business loans. Applying for small business credit cards can be quickly done online or through banks. The criteria to qualify for a small business credit card depends on the business owner’s credit score and combined income (personal and business). Small business credit cards are convenient startup financing options. Choose a credit card with a 0% APR to save money on interest. You will be able to pay off your debts in full each month once you start generating revenue. According to a recent Federal Reserve Small Business Credit Survey, 53% of small businesses use credit cards to help fund their operations. The most significant advantage of a small business credit card is that you can access the funds immediately for short-term needs, potentially increasing your company's purchasing power. Venture capital Venture capital funding is a good choice of startup financing for small businesses. Venture capital is a type of equity and financing provided by investors to start-ups and small businesses with the potential for long-term growth. Venture capitalists are a type of investor who typically invests in a business against equity and holds a small portion of the company's ownership in exchange for capital. When investing, venture capitalists consider a few criteria, such as specific industry sectors, company stage, and geography. In addition, venture capitalists frequently seek entrepreneurs with a robust business model that has the potential for higher returns. Venture capital financing is difficult to obtain because, as a business owner, you must ensure that their focus matches your company's and its stage of development. Venture capital is a time-consuming process that looks for more considerable opportunities that are stable, have a strong team, and have good traction. However, because venture capitalists provide a lot of mentorship and ownership, this may not be the best option for you if mentorship and compromising do not fit in your books. Crowdfunding Crowdfunding is a new trending option of startup financing for small businesses and has increased over the past few years due to its low risk for business owners. Crowdfunding is a way to raise startup capital through small contributions or investments from many individuals via crowdfunding websites or crowdfunding platforms. To raise funds for startups through crowdfunding is not very difficult; it just requires setting up your company profile on the popular crowdfunding websites or crowdfunding platforms available. The profile needs to describe your company, its business, the products or services you deal in, and the amount of money you wish to raise. Interested people can contribute to your campaign in exchange for a reward for their contribution. In addition, setting up a crowdfunding campaign gives exposure to your young company seeking money for the startup. Crowdfunding for startups is accomplished by gathering donations from diverse people in exchange for a special reward. This incentive could take the form of free products, exclusive discounts, first access to new products, premium merchandise, the opportunity to join the team, or even becoming a significant capital investor. 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Then, request their valuable feedback on your business plan, as well as their advice based on their business experience, if any. This approach demonstrates your regard for their knowledge and expertise. Despite all the benefits listed above, a business relationship with family or friends should not be taken lightly. Never assume that your close family or friends will lend you money. Do not take their financial assistance for granted. Angel Investors Angel investors are another excellent source of startup financing for small businesses. Unfortunately, many people believe that venture capital and angel investors are the same things, but this is not the case. Venture capital is the companies that invest in your business. In contrast, angel investors are wealthy individuals or successful retired business executives who invest directly in small firms and take an equity stake in the new venture. Angel investors are one of the few startup financing options sought out during the early stages of a new business's growth. Along with funds, angel investors offer advice based on their experience, technical and management knowledge, and network of contacts. As a result, Angel investors frequently have a low profile and invest less than venture capitalists. Personal loans for business A personal loan for business may be worth considering for entrepreneurs with excellent personal credit and a new business idea worth putting your own money on the line for. The benefit of this option is that there are no hidden fees; it is simply a personal loan. Personal loans have lower interest rates and easier repayment terms than business loans. This is an effective startup funding option because it can be used for almost any purpose. The most significant disadvantage of a personal loan is that you are the sole accountable if your business fails and is responsible for the repayment of the outstanding balance. However, this can be a viable option as a startup financing for small businesses if you need a relatively small startup capital. Small business administration (SBA) loans The SBA does not lend directly to small businesses; instead, it offers various loan guarantee programs to qualifying banks, non-profit lenders, and credit unions. For example, some banks offer low-interest loans to small businesses that are backed and guaranteed by the Small Business Administration (SBA). They target underserved companies and make loans to start-ups. The loan application process is time-consuming, with stringent requirements for qualified small businesses. As a result, the Small Business Administration (SBA) offers a few startup programs such as micro-loans and Community Advantage. Equipment financing Equipment financing is the top option if you need startup financing to purchase equipment and machinery. Because the equipment you will buy will serve as collateral for the loan, lending standards for equipment financing may be less stringent. However, if you do not return the money, the bank may seize your equipment to cover the cost of their lost money. Dealerships, banks, and online equipment finance providers all offer equipment financing. The main advantage of equipment financing is that you gain ownership of an asset, the payments for which are spread out over time, which is generally one to five years. Frequently Asked Question: What do you mean by startup funding? Startup funding is money raised to help a new business meet its initial costs. To raise startup capital, entrepreneurs must create a compelling business plan to sell their concept to potential investors. Where can I find startup financing? Angel financing, crowdfunding, small business credit cards, venture capital, equipment financing are few popular options to find startup financing. What are the types of funding? Crowdfunding, venture capital, angel financing, small business administration loan, small business loans are few types of startup financing to businesses. { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What do you mean by startup funding?", "acceptedAnswer": { "@type": "Answer", "text": "Startup funding is money raised to help a new business meet its initial costs. 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Spotlight

The Real Deal

Considered the bible of New York City real estate, The Real Deal has become mandatory reading for everyone in the industry. Since 2003, TRD has provided up-to-the-minute industry news and in-depth reports and profiles in our 65,000-circulation monthly magazine and on TheRealDeal.com, which receives more than 1 million unique visitors per month. Our content is available across multiple platforms, including a mobile app available to iPhone, iPad and Android users alike.

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