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During the planning phase of expanding your business into a new market, it is easy to get caught up in the excitement and potential rewards that setting up overseas often brings. However, as we mentioned last week as we guided you through costing your venture, ensuring you have tight financial processes in place is important to ensure your business maximises its profits and makes the best of the investment.

Financial requirements will change from location to location, so you should ensure you properly understand the fiscal environment and have sourced the right support before you take the plunge. Some financial aspects to consider as you plan your international expansion:

1.      Is your current bank operational in other markets? Many banks today pride themselves on being international to facilitate cross-border business transactions. If they themselves do not have overseas branches, banks will often create partnerships with other banks in the same group, and piggyback on their international coverage to meet client needs. Could you open an in-country bank account via your bank’s local branch or network, or will you need to source a new, secure and reputable bank to look after your local funds?

 2.      Consider potential bank and foreign exchange charges for any cross-border financial transactions. Timescales for cross-border payments between banks can be lengthy and funds can go missing. It may be worthwhile to use the services of an FX company specialising in international payments and with access to better deals on foreign currency – partnering with companies like this can minimise banking charges and ensure speedier payments.

 3.      The payroll of any local staff, whether expatriates or nationals, is another important factor to get right. Dealing with the payroll of employees in foreign countries can place strain on your resources, especially if you are not familiar with local practices. Taxation requirements are often different from country-to-country – make sure you are paying them correctly in line with local law. Add to that the importance of ensuring your employees are paid on time to keep their morale up, and the process can become a headache – especially if you are dealing with multiple country locations.

 Utilising the services of a global payroll company can help you guarantee compliant and timely remittance of funds to your workers. These companies work alongside your existing, in-house departments responsible for payments, and if they have an international network covering your locations, they can provide a single point-of-contact to standardise your processes.  

 When looking for a global payroll provider, check whether they cover the following:

 ·        Organisation of local payroll set up;

·        Secure records and timely, detailed reporting;

·        Clear local payroll calculations;

·        Rapid movement of funds for salaries and tax remittances;

·        Continuous monitoring of tax regulation in host countries.

If you are planning expansion into one location only, your local accountant may be able to carry out payroll duties on your behalf. Make sure you have good processes in place to ensure timely remittance of funds to your local partner in time for them to pay any deductions to the authorities and the net funds to the worker. A salary deposit can help with this.

4.      Fiscal compliance is absolutely essential to ensuring the success of your international enterprise. Compliance is a key buzzword as governments crack down on loopholes and shady practices to raise funds through fines. Do extensive research on the country’s individual requirements, and check and account for finance and taxation legalities to avoid unnecessary fines. You and your business can be blacklisted from operating locally if you do not comply. This applies to income taxation and corporate requirements.

 5.      Secure the right partners. SMEs and companies in the process of expansion are often priced out of the services of the big 5 international accountancy firms; however, sourcing local accountants and financial advisors can often provide you with good advice on local circumstances and access to better pricing. Alternatively, global service providers like Mauve Group can offer surprisingly competitive consultancy and services through their international network of companies and experts.

by Megan Schrader

    I had the opportunity recently to meet Noel Lourdes, the Managing Director at Kemtron Gaskets & Seals, at a Pine Hub Entrepreneurs Toolkit event. Noel wears an impressive suit and carries a history of successful leadership behind him, having acted in a number of directorial positions for several years now. I asked Noel if he could share with me his first-hand advice for finding such renown, and he provided for me a brief list along with the name Per Wimmer. This was when I first encountered the Seven Wimmer Values.

    Pushing boundaries and making history for several decades now, Per Wimmer is an entrepreneur and an adventurer with an enthusiasm for turning dreams into reality. His seven values, those that Noel had shared with me, are Wimmer’s own tools for success as he pursues the title of the first private Dane in space. And these values have brought him far – to the peak of Mount Everest, in fact. What makes the Wimmer Values particularly notable is that they are not complex or inaccessible. Rather, any entrepreneur can apply them to his or her own business and benefit. As such, I am eager to share these core principles.

The Seven Wimmer Values

Wimmer Value One| Think out of the box

    Creativity and innovation are vital to entrepreneurial success. The world evolves endlessly, and what is valued one day will be forgotten by the next. Successful entrepreneurs understand that they cannot be resistant to this truth. Instead they embrace it, allowing their products and services to grow with society. They are open to change and allow themselves to be inspired by the universe’s tendency to fluctuate. Adaptation is not a weakness, but rather a willingness to innovate.

Wimmer Value Two | Follow your heart and passion

     When a person is passionate about their work, it shows. They put in the time and effort to deliver the highest quality goods and services. They seek out new experiences, new understanding and new ideas. They deliver results with enthusiasm and excitement. When an entrepreneur truly takes pride in their product, consumers are far more receptive and business soars.

    Additionally, passion is a powerful motivator for any professional. Long hours of hard work are much less daunting when the result has significance to the individual. It can be tempting to forgo heart when presented with material gain, but a large effort is only sustainable if there is joy in the process.

Wimmer Value Three | Focus and execution

    Work without a goal is unlikely to reward. A goal without pursuit is unattainable. To succeed in their field, an entrepreneur must be able to both define their objective and take the steps necessary to reach it. If the current direction of a company does not support the overarching goal of its employees, then there needs to be a change in either its focus or its execution. Don’t spend precious time on projects that don’t align with the business’s intent. Act with purpose and precision.

Wimmer Value Four | Time discipline

     There is only so much time in the day, and successful entrepreneurs know how to make the most of each minute. Time discipline requires restraint, commitment and a realistic approach to scheduling. Establish clear priorities, know how much time each action will take and accept that no one can do everything. Entrepreneurs must be willing to turn down invitations when they are short on time, but also to accept priceless opportunities regardless of their fears. They understand the value of their time and they are keenly aware of how they spend it.

Wimmer Value Five | Teamwork

     No man is an island. Success is a collaborative effort, the result of unique minds coming together and working towards a common objective. An entrepreneur should know their strengths and identify the value in those around them. Delegate tasks, and never be afraid to ask for the help of colleagues or friends. A fresh pair of eyes may see new solutions to a problem. As Wimmer reminds, “the sum of the parts is greater than the individual parts alone.”

Wimmer Value Six | Take calculated risks

     While it is true that big risks can have big rewards, entrepreneurs should be discerning about the risks they take. Always know what stands to be lost and question whether the potential benefits are worthwhile. Profit is enticing, but the loss of integrity, respect or sustainability is not worth gamble. Before making a major decision, a professional should be sure they have considered what is at stake. Never act just for the sake of acting.

Wimmer Value Seven | Inspire others

     If an entrepreneur reaches their goal, that is one person’s success. But if along the way they motivate their neighbours to pursue their own objectives, then the entire community can thrive. Connect with those around you and encourage them to chase greatness. While a professional’s work may be forgotten, they can continue to achieve through those they have inspired.

Feeling inspired? Learn more about Per Wimmer’s work at http://www.wimmerspace.com/.

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