International Connections: Starting a Business with Multinational Ties

BY VALENTINA CASTRO

The world is becoming increasingly more interconnected, offering benefits for businesses that can create and maintain international relationships. Crossing this global frontier can enhance a business’s success but also add difficulty to the existing challenges of entrepreneurship.

Karla Cervoni is Managing Director of Stelac Advisory Services, a wealth management company throughout the Americas. In terms of global business expansion, Cervoni believes that "any new endeavor often seeks a high-risk and high-return profile. A global business amplifies that same profile." International expansion creates many growth opportunities but is not the right move for every business. Proper evaluation can help business owners determine whether international expansion is the right strategy for them.

Rather than confining operations to a domestic market, targeting global audiences becomes a strategic move to enhance financial prospects by diversifying the demand. However, global expansion introduces a distinct set of challenges and complexities that elevate overall risk. Marketing and selling to these new audiences creates a challenge for under-resourced businesses, making timing an ever-important factor for growth.

Karla Cervoni. Stelac

However, marketing and conducting business multinationally creates challenges for any business. Cervoni says, "[a]s a starting point, one must be naturally interested in global affairs and the idiosyncratic nature of each country." Having these interests simplifies creating connections. Being culturally aware and informed is imperative to understand the audience you are selling to. 

Adaptation becomes a priceless skill for those venturing into international business. New strategy development and adaptation to new markets simplifies the transition. A general knowledge of culture and cultural sensitivity is necessary for multinational growth. Cervoni believes that "[b]eing or the attempt to be a people-person will benefit a young entrepreneur greatly. True connection to the culture will make multinational marketing much easier and enjoyable". Putting a personal touch into your work will elevate what you do.

Although keeping a personal touch to work is valuable, your work should always stay within rules and regulations. Cervoni highlights the fact that "[a]ttention to jurisdictional compliance is also a major factor as any business must comply with local rules and regulations." Navigating the legal intricacies of different countries is pivotal for ensuring the sustainability and reputation of a business on the global stage. Global expansion is impossible if a business does not follow the rules and regulations. While getting personally involved in your work is valuable, one should ensure that all you do legally stands worldwide, as not all laws are the same.

For students, current business owners, and prospective entrepreneurs contemplating international business, possessing a thirst for knowledge, a passion for travel, and adaptation skills opens doors to a world of experiences and opportunities. For every business, new and old, it's always important to factor in your product, finances, and skillset before expanding internationally. Creating a business with multinational ties is incredibly difficult, but past every hurdle, the result is worth it.