Whilst the term ‘international business’ is commonplace; it’s also commonly misunderstood by commentators and entrepreneurs.
It’s certainly a more diverse and inclusive term than some would give it credit for, as it covers an array of different activities including the movement of goods from country to another and contractual agreements that enable companies to sell products and services into international markets.
In this post, we’ll look at some golden strategies that for effective management and growth in international business, and ask why they’re so impactful.
- Ensuring Accountability and Leadership Internationally
Australia has become a haven for international business and investment of late, thanks to its secure economy and increased technological focus.
The deployment of blockchain to record agricultural and cotton imports offers a relevant case in point, with AgriDigital having handled over $1.2 billion of grain transactions to date.
As the decentralised and transparent blockchain technology becomes increasingly prominent in Australia, however, this creates a pressing need for accountability and regulatory guidance. This is particularly true in the case of international projects, as otherwise it can be hard to pursue shared objectives and minimise risk when collaborating across borders.
Regardless of the sector you operate, it’s imperative that your business showcases accountability and leadership when expanding overseas, as this compels you to take ownership of your future whilst negating the legal and social challenges associated with international markets.
- Have Clear and Agreed Objectives
This is true of any partnership, of course, as developing clearly understood and agreed objectives creates a shared definition of success that can stand the test of time.
It’s arguably even more important when developing an international business venture, however, as cultural, language and communication barriers can make it hard to develop a shared understanding.
So, constant and concise communication is key here, whilst it’s also important to work to written contracts and objectives that can stand up to future scrutiny.
As an aside, this also helps to ensure that your objectives are attainable, as committing them to writing also makes you consider them from a practical rather than an ideological perspective.
- Create Clear Governance Structures
On a final note, you’ll need to create clear governance structures if your business is to thrive overseas, whilst these should be tailored to suit the nature of your business, the challenges that it faces and the country you intend to operate in.
One of the main benefits of this is that such structures can be designed to pinpoint weaknesses in the business and its underlying model, whether these are generic or connected to a specific international market. Make no mistake; these weak points can undermine efficient management systems and cause your business to fail internationally over an extended period of time.
When developing these structures, you may want to consider working with a seasoned consultancy firm like RSM.
After all, this type of company has in-depth knowledge of multiple markets on a global scale, whilst they can advise you on how to structure a business and lay the foundation for sustainable growth.