Challenges Facing International Business

2017 looks to be a year of big challenges for business wherever they are in the world. Let’s pin down some of the major incoming challenges for businesses in the next year.

International Law

If you’re operating a business on an international scale – even a retail business that ships internationally – it’s important to have a proper understanding of the laws that govern your business model in different territories. This is particularly important if you’re operating a business model that doesn’t have a direct existing analogue. AirBnB has made a lot of money and adopted huge publicity by breaking new ground and crowdsourcing rental property for holidays, but by moving into Spain without conducting proper checks into its legal standing it found itself on the receiving end of a large fine.

Shipping to, from or within Scandinavia, is another example of international business law that takes time to understand: the customs situation is complicated, and can result in parcels being delayed, lost or the intended recipient having to pay unexpected customs charges in order to pick up their parcel. Unless this is accounted for and handled correctly, this could sink an attempt to move into the Scandinavian market under red tape and customer resentment.

It’s important to conduct proper research and consult experts before you make a move into a new market. You may find it helpful to talk to contacts at other businesses who have made a successful expansion into the territory you are considering. They can identify some of the challenging areas you may find yourself facing, and possibly give you a head start on solving those problems.

Brexit

As Chris Williams puts it, “Uncertainty is never good for business…now we have uncertainty caused by the Brexit result, combined with parliamentary disruption and still no clear plan”.

This is a challenging time: without clear knowledge of what the effects will be of Britain leaving the UK. The knock-on effects, as it disrupts the relationships of businesses around the world doing business in the UK and Europe are hard to predict. You’ll definitely expertise in your business, but it’s hard to know what expertise will be best to help you in this uncertain time.

You would be well served making preliminary enquiries with an interim recruitment company, like Savannah Interim, who are experts at getting temporary expertise into organizations that need it, when they need it.

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