A global company does not have to be a multinational. It can simply be one with an international workforce. Through the revolutionary connectivity of technology, it is possible for people in different countries to work on creating almost any kind of virtual business, from building a web-design company to running a detective agency to tackle parental child abduction.
However, when thinking of building this company, you have to ask some critical questions like tax implications you will face when you have an international workforce, how you will handle them, and how you will file legally and correctly.
Once you figure out how to manage a business that hires an international workforce, your next step is to plan your exit strategy. Although this may sound counter-intuitive, here’s the logic behind thinking of selling even before you’ve begun building:
The sale of the business might be one of the most profitable things you could do after you have built your successful global company.
Once you have your numbers, it will be fairly easy to convince buyers that this is business is profitable. You can show them how low your overheads are because labor abroad is cheaper, how a difference in currency exchange rates affects your books, and how getting talent from abroad can positively affect your bottom line.
Claim up to $26,000 per W2 Employee
- Billions of dollars in funding available
- Funds are available to U.S. Businesses NOW
- This is not a loan. These tax credits do not need to be repaid
Finally, one reason you will be able to sell your business at a good price is because building a business with an international workforce is not easy. While many people can build local businesses, few can build one with an international scope. Few people do it, because it is fraught with difficulties. Consequently, your business will be rare; and because it will be one-of-a-kind, with low costs and high profits, it will fetch a good price.
A global company faces challenges with employment law and tax regulations. It also faces challenges with managing and growing an international workforce. You will have to find answers to questions like how to manage compliance and how to handle employment relationships?
The cost of noncompliance is heavy. You face the risk of paying fines to government regulatory agencies, the risk of employee lawsuits, the risk of losing staff goodwill, and the risk of tarnishing your business reputation beyond repair.
At this point, you may be wondering if building a global company is such a good idea – even if it means low costs, high profits, and a high probability for making a small fortune when you sell it. Still, although setting up a global company is fraught with difficulties, you can simply outsource all your problems to a company that knows how to resolve them. Online HR company ADP.com works with multinational companies and has professionals in more than 70 countries who can help you with compliance issues and staying ahead of legislation in the US and abroad.
While solving the compliance issue is an excellent reason to outsource the HR needs of your international workforce, there are two other reasons, you may want to consider this option:
One, you can lean on an international HR network and sophisticated technology to recruit, develop, compensate, retain, and promote your international workers.
Two, you can cut your costs and save almost 40% of what a multinational company would spend. This is because you won’t need multiple HR apps, platforms, and vendors, but only one. By getting rid of complexity, your daily operations will run smoothly.
A large number of business ideas could work well using a global business model. With technology, it is easy to facilitate communications and sharing. This type of business will also sell very profitably. Although there is a downside to this business because it is fraught with all kinds of problems, you do not need to wrestle with them. Instead, you can simply outsource these problems to an HR firm that has the expertise, technology, and business connections to quickly and easily solve them for you.