Expanding your business overseas can increase profits but only if you partner with the right company
Your business is growing across North America. You’re partnering with the right companies to increase sales.
The strategy is paying off, as indicated by your profit margins, but the numbers are beginning to stagnate.
Do you have the feeling it’s time to start looking overseas for new business opportunities?
More and more U.S. companies are looking at entering the Asian market.
The expansion opportunities are almost endless, but there’s a catch.
American business owners should know who they are partnering with. Is it a legitimate business and how do you check?
Verifying a Business’s Legitimacy
It’s relatively easy to get proof of business when the company is located stateside.
Cities, counties, states, and the federal government all have resources dedicated to helping people verify almost every aspect of a business.
You can even take advantage of privately-owned sites like the Better Business Bureau (BBB).
The organization tracks registered businesses’ records, including their public perception using a simple grading system ranging from A+ to an F.
It’s a little more difficult when you are branching out into overseas markets.
Not every country provides foreign and local business owners with the same helpful resources.
However, it doesn’t mean randomly picking a foreign business partner. You can still verify the legitimacy of a business in almost any country. It includes the Asian marketplace.
Helpful Tips for U.S. Business Owners
Most Asian businesses register their companies with their respective governments. It’s an easy way to perform a business license check.
Why is it vital to verify if a business is licensed?
It helps to ensure your company is working with a professional business that is capable of holding up its end of the agreement.
Performing a business license check can also help your company save money. Some governments may impose fees on foreign businesses working with non-licensed or government-approved companies.
Don’t forget about the wasted funds that often occur when an unlicensed business isn’t able to meet your requirements.
It’s always a good idea to ask the business to provide the necessary documentation, including their business license.
Companies that are lax in retaining their documents may not be reliable partners.
Did you know the US Customs and Border Protection Agency can also help?
The government agency keeps meticulous records on foreign companies importing goods and services to the United States.
Do Your Homework
An effective way to get decisive proof of business is to do your homework.
You thoroughly vet your employees, so it only makes sense to do the same for your overseas business partners.
Don’t be afraid to ask for references from the business’s other clients. Follow up on the supplied resources with phone calls and emails.
Along with verifying the company’s legitimacy, you may even be able to grow your business network.
While it’s not a common practice, it is something to consider. You may want to contact the business’s bank.
It isn’t going to provide you with personal financial information, but you will be able to tell if there are any potential red flags.