By Karlene Sinclair-Robinson
Everyday entrepreneurs are growing their businesses by doing business around the globe. It is no longer business just on a local scale anymore. Operating your business for the local market is fine; however, it is now very possible to take the business regionally, nationally and even worldwide. If you are planning to expand to a larger market, is important how you scale your business growth. The ramifications of this expansion can be daunting; however, you cannot allow it to derail the opportunity to sell your goods and or services to a wider market.
With the advent of the internet, and new technology that can now facilitate global business opportunities, financing can be a nightmare. Gaining global clients requires increased cash layout in order to provide the goods or services. These additional expenses are usually appropriate and in proportion when you are taking the business from a local level to a wider audience.
Financing solutions are available to business owners based on increased sales and clientele. Where those clients are located can be important when you are in the process of securing the necessary capital for business growth or survival. Being able to deliver the goods or services is crucial to continued growth. Doing business with credit worthy clients is a critical element to any financing strategy.
Doing business on an international scale changes the game. Signing on new clients who are not good payers can decrease your capacity to gain the funding you need. The clients must also be approved by your lender depending on the financing solution being employed before a funding option can be implemented. Here are solutions to consider before accepting clients outside your local market:
- Factoring – Having outstanding accounts receivable is no fun when there is no money in your bank account. Selling your receivables is an option to consider when you need an immediate cash infusion.
- Purchase Order Financing – Is appropriate when your business receives that large order and you are not financially solvent enough to facilitate the transaction.
- Crowdfunding – The opportunity to finance your idea or product through this option has helped many see their dreams become reality. This solution creates an immediate customer force for testing future product ideas. Just think – ‘pre-sales’ in the 21st Century.
- Letters of Credit – LOCs give qualified entrepreneurs the ability to transact business on a larger scale. Entrepreneurs can grow their enterprises faster on a national and even global scale, with this option instead of turning business away.
- Microloans – This option must never be taken lightly. It is used around the world to help start-up micro-enterprises and grow established small businesses. These businesses would not exist otherwise, and in some countries, some communities would not exist otherwise.
Finally, global enterprises are not necessarily large, multi-million dollar firms. They can be small businesses operating across borders, on a global scale, accessing much needed financing, while being the driving force in their local economies.