International Business 101: Learn Global Business Strategy | Chris B. | Skillshare

International Business 101: Learn Global Business Strategy

Chris B., Instructor, MBA and CFO

International Business 101: Learn Global Business Strategy

Chris B., Instructor, MBA and CFO

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20 Lessons (48m)
    • 1. Course Introduction

      1:48
    • 2. Instructor Introduction

      2:00
    • 3. Introduction to What To Know

      2:52
    • 4. Financial Risks

      5:45
    • 5. Global Expansion Opportunities

      2:46
    • 6. Corporate Finance

      3:05
    • 7. Financial Analysis

      3:30
    • 8. Global Competition

      2:58
    • 9. Introduction to Tips and Strategies

      1:02
    • 10. Understand All The Possible Factors

      2:07
    • 11. Map Out Possible Strategies

      1:18
    • 12. Narrow Down and Eliminate Options

      1:50
    • 13. Top 3 Strategies

      1:53
    • 14. Execute Refine Revisit

      2:00
    • 15. Dos and Donts

      2:55
    • 16. Case Study 1

      1:43
    • 17. Case Study 2

      1:37
    • 18. Case Study 3

      1:42
    • 19. 10 Point Checklist

      3:02
    • 20. Course Conclusion

      2:08
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About This Class

Are You A Business Student, Entrepreneur, Or Executive?

Do You Want To Learn More About Global Business?

Is Global Expansion In The Future For Your Business?

Do You Want To Learn The In's and Out's of Global Business?

If You Answered "Yes" To Any Of The Above, Look No Further.  This Is The Course For You!

Start today and join the 100,000+ successful students I have taught as a Top Rated instructor!

Three reasons to TAKE THIS COURSE right now:

  1. You get lifetime access to lectures, including all new lectures, assignments, quizzes and downloads

  2. You can ask me questions and see me respond to every single one of them thoroughly! 

  3. You will are being taught by a professional with a proven track record of success!

  4. Bonus Reason: Udemy has a 30 day 100% refund policy - no questions asked and no risk for you if for some reason you don't learn from the course!

As the world continues to become a global economy, it is important for anyone in business to understand how to operate in this environment.  There is a lot of opportunity for growth globally, and having a global financial business strategy to expand and operate is of utmost importance. 

Be a pro at global financial business strategy with this course!

In this course you will learn all about what it means to operate with a global financial business strategy. You will learn about the risks involved in expanding, the opportunities globally, corporate finance, how to do financial analysis when operating at the global level, and what it means to complete with other global firms. Operating on a global level is an entirely different game, and with course you will be empowered to make the right steps for you and your business.  

What We Do In The Course:  

  • Learn the major differences  between IFRS and GAAP

  • Learn about the opportunities globally

  • Understand the risks of expansion

  • Learn how to analyze other competitors

  • Determine a strategy to bring your business to a global level 

  • Have a 10 point Action Plan for your global financial business strategy

  • View 3 case studies on companies who adopted IFRS

  • And Much More!!!

At any point if you have a question, please feel free to ask through the course forum, I'd be happy to answer any and all questions.  

***JOIN NOW AND LEARN ALL ABOUT GLOBAL BUSINESS STRATEGY! ***

About The Instructor

Chris Benjamin, MBA & CFO is a seasoned professional with over 20 years experience in accounting, finance, global financial business strategy and financial analysis.  Having spent the first 10 years of my career in corporate settings with both large and small companies, I learned a lot about the accounting process, managing accounting departments, financial reporting, external reporting to board of directors and the Securities and Exchange Commission, and working with external auditors.  

The following 10+ years I decided to go into CFO Consulting, working with growing companies and bringing CFO level experience to companies.  I help implement proper best business practices in accounting and finance, consult on implementation of accounting systems, implementing accounting procedures, while also still fulfilling the CFO roll for many of my clients which includes financial reporting, auditing, working with investors, financial analysis and much more.  

Thank you for signing up for this course. I look forward to being your instructor for this course and many more!

Chris Benjamin, Instructor, CFO & MBA

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Instructor, MBA and CFO

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Transcripts

1. Course Introduction: Hello, everybody. Welcome to the course. Best practices for establishing a global financial strategy. My name is Chris Benjamin. I'm gonna be your instructor in the next video. I'm going to do a little bit more of an introduction to myself in my background while I'm qualified to teacher this course. But for now, I just want to give you an overview of what will be covering. So you have an idea. So first of all, why are we talking about this subject? You know, business just continues to grow globally. The economy continues to expand. The borders are open, obviously use of the Internet and doing everything electronically. Now, there's just a lot more opportunity to operate on a global basis rather than just a domestic basis. So with that said, with that comes a lot of different things You need to be thinking about them. Need to think about your strategy and how you expand globally. How do you market to different areas of the world? You know, not everything could be done the same as we do. Maybe domestically. I'm thinking about finance. How do we deal with things like different exchange rates, different currencies, different accounting policies. So it's quite a few things to think about. So we're gonna go in and sort of discuss those main items and what you need to be aware off with those there we're gonna talk a little bit about How do you determine your strategy and put together all these all these pieces of the puzzle from there, we'll also go over some do's and don't things you should definitely be doing things you should definitely not be doing. We're gonna take a quick look at just three case studies of companies that did expand globally and how they went about implementing a strategy. Also give you a 10 points or of action checklist that you can dio cut the things you should definitely be doing in order to set yourself up and set the right tone for for your global expansion. So that said, thanks so much for signing up for the course. If during the course any point you have questions, feel free to send me a message through the website happy to answer those and without, Let's go ahead and get started 2. Instructor Introduction: All right. So just a little introduction to myself again. My name is Chris Benz Rooms on the CFO. A chief financial officer. Ah, and an MBA. So I got my undergraduate degree from the University of the Fraser Valley in Canada. I then went on to get a master's degree in business an m b A from the University of Washington in Seattle, where I focused mainly on entrepreneurship in business. Um, I have over 20 years experience both large publicly traded companies as well as tiny, smaller early stage ventures, all in the CFO role and the accounting functions. So after about 10 years and corporate world I left on the most recent 10 years, I focused on being sort of an interim part time CFO, basically consultant to companies. What I want to do is on a partnership basis, go in, sort of add value, bring all that knowledge and experience and industry exposure that I had gained, bring it to growing companies and help them do things correctly. From the start. A lot of times have joined the board of directors or it come in just as the sea level management team and help them out At this point, I've worked with probably close to 100 companies, different capacities. Sometimes it is joining as an ongoing CFO, so I might be there for a few months or a few years. Sometimes, though, it's just a project. They need help, you know, creating a financial forecast coming up with a valuation implementing accounting system. Or sometimes it is. How do we go about handling accounting and finance when it comes to a global basis? So it definitely worked with several companies to work globally. It's always interesting. It's very dynamic. I think it's some of the most fund companies to work for. Ah, and just the final point here at Brought Coming from C staged AIPO. So literally ah, second employee with someone company. Four years later, we took the company public, so definitely seen it all worked through a lot of accounting, Ah, important implementations and issues and everything else that said, I'm looking forward to getting started on teach about the course again just to reiterate if you have any questions during the course, send me a message. I'm happy to answer them, and with that said, let's go ahead and get started 3. Introduction to What To Know: Okay, so let's first of all, just talk about a general overview to sort of set the tone before we get into the weeds and the rial details of the course. So first of all, we're in a global economy, and that's only going to continue to grow, um, to be sort of competitive these days. Now, course it depends on the nature of your industry, but as a whole, um, and the economy, we are growing globally. And to be competitive, you really do need to think about your global reach and not just your domestic reach anymore. Ah, strategy planning is much more than simply expanding your domestic strategy. You know, a lot of people think they'll just do what they do here domestically and just do that on a global basis. So whatever they do for marketing, um, in their own country, they'll just do that in other countries, you know, whatever they do for accounting, they'll do that. The problem is, there's different rules or different regulations. There's just different things that work and don't work in different countries, especially when it comes to things like marketing. You know what appeals to your domestic market might have zero appeal to a market in a different country. What you do for accounting in their domestic market. I might not be allowed in the foreign market, so you need to keep different books. So there's and that's just two examples. Lots of different ways that you're coming is gonna have to operate differently in other countries. And that's what we're here to talk about today. It's just all the different ways that, uh, things could be different in what you need to be doing and thinking about. Ah, so Number three here it takes time. It takes effort. It takes money to create and refine your strategy. It's not as simple as just where it was gonna open a factory in a different country and start doing what we do, or we're just going to start selling, say, even just selling your product or your service to a different country. It's not that easy really need to plan things out on the next slide. So these five points I just want to introduce them, and in the next five videos we're going to talk about these more specifically. So we're gonna talk about the financial risk so it's not beyond just planning and what figure out what you need to do. There's a lot of risk associated with expanding globally, so we'll talk about those financial risks and what they are and maybe how you mitigate. Um, we'll talk about global expansion opportunities. What is the opportunity out there? How should you be sort of thinking about this? And how do you discover that opportunity? We'll talk about corporate finance and sort of how you know Hispanic globally impacts corporate finance as well as we're going to talk about financial analysis. How do you do financial analysis when you're operating in several different markets, different currencies, different accounting rules? How do you handle that? The last thing we talk about competition globally. How did you know just what is there to know about the competition? How do you need to be setting your sort of frame of mind when it comes to thinking about your competition and as well, then that ties into things such as? How do you market your product? How do you price your product and how do you distribute it so quite a bit that we're gonna be covering that said, That's it for this introductory video. Now let's go ahead and get into the details 4. Financial Risks: So let's talk about the financial risk. First of all, so what? You need to do these air several areas need to be think about so haven't understanding of all the factors globally that impact your plans. So let's name them off, then let's discuss them a little bit. So interest rates, exchange rates, credit tightening, stock market fluctuation, political impacts. Okay, so first of all, these are all external factors. These are not things that you can control within your company. These are all globally. Ah ah. But within the global environment, these are all aspects that could change and impact your business. So, first of all, thinking about interest rates in tricked so interest rates, first of all fluctuated in our country as well as other countries. So let's just assume you're going into business in one other country. We don't need to talk about, you know, several different countries. Um, you know, if interest rates were to say increase. So you need to understand a little bit of economics to really appreciate how this impacts thinks. The people here interest rates and they just think of loans and, you know, they might think, Well, we don't have any loans, so interest rates don't really impact us, But they actually dio um So when interest rates tend to rise, um, people borrow less money, they're spending less money when interest, you know, they don't want to buy houses they want to buy, you know, take out loans to buy cars. So they're just spending less than economy tends to slow down a little bit. Likewise, when interest rates fall, people tend to spend more. You know, they do want to buy. They want to capitalize on money, being cheap. Essentially. So imagine a situation where say interest rates rise domestically and in the foreign country, you all of a sudden now have an impact where sales there will probably or possibly at least drop in all of your markets, not just one or the other. Exchange rates next. So again, dealing with your country and one other country, you're gonna have that exchange rate between you and now. Certainly we're assuming that the domestic company is kind of the parent company, if you will, and maybe you have, ah, a subsidiary in in a foreign market or you just sell over there. You don't even have a subsidiary you just you happen to Sella's well in the foreign market ? Well, the extreme treat will have a big impact. So especially if you work in a business where margins are fairly thin. So you make only see a 5 to 7% gross margin. But now exchange rates changed and you're not even. You know you're still having to se source your product domestically and then shipping overseas wherever it might be and sell it. But now the money you're getting on the dollar is is weaker. So now may be your only clearing, say, 2% emergence. Or maybe they even put your margins at risk and exchange rates or something that you can't control whatsoever. And they're gonna be something that fluctuates all the time. Another point to is, once you sort of enter American, start selling. It's not like you can just say, Well, we're gonna put our sales on hold because exchange rate is in our favor today. Tomorrow, if it's better, we'll start selling him. Know you've already made commitments. You're kind of in it for the long haul. When you do go into any market, so you're gonna automatically expose yourself to exchange rate risk credit tightening. So again, credit tightening may or may not be related to interest rates. But say, you know, in the United States, when there was the huge housing crisis and you know loans had been been giving out pretty liberally, then all of a sudden all that disappeared, it became a lot more difficult to borrow money. Well, if it becomes more difficult to borrow money, you might see your sales dwindle a little bit and say it's not even domestically. It's just in the global. Yeah, in the global market, wherever you might be, say, there's whatever crisis or just nature business credit starts to tighten up and said, and as well think of you know, whatever it is you sell if you sell sort of ah, high ticket Ah, priced item And people do Tenley generally take out credit to buy it Well, credit type of credit tightening is going to impact your sales directly. So again, something you can't control and hope you're getting appreciation for that. There's a lot out there that you just can't control that can really have an impact on you. Ah, stock market fluctuation some again, somewhat like the others where you know if, um, if there's huge swings in the stock market, it really dictates how people spend their money. You know, if the market's booming that people tend to want investor money more, which also might mean they're spending less than sort of whatever goods and services that you have, um, stock market crashes. So you know, we're already kind of subject to some of these things in the domestic, you know, country. So the stock market fluctuations can happen domestically. Credit tightening could happen domestically. Interest rates domestically, but say exchange rates. That wouldn't impact you whatsoever if you only operated domestically, um, and then, lastly, political impacts on other things. So now you have to countries that you have some potential for issues, and then you also have the issue. Depending on where you're selling, you know off, just embargo. Say that your domestic Kump country decides that companies are no longer allowed to sell to this other country because they're at war with them. Whatever the case might be, so or just there's a political upset in the country that internationally that you're working with, and it's possible to sometimes things happen in neighboring countries. So you might be selling to whatever given country and war breaks out in the country next to them. There's probably some impact on the country that you're selling it as well. So, you know, all of these factors could really have ah, having impact. So when you're thinking about expanding, when I want you to do is you really sit down and think about well, how much exposure do I have to each of these? Like, will interstates really impact me? Will exchange rates really impact me? Um, yeah, all All five factors, basically, you know, kind of determined how much at risk you are or you aren't, and then go from there. So, for example, political impacts. I mean, if you're selling to, you know, a fairly team nation, you know, they don't tend to get in a lot of wars. For in general, they're fairly stable economy, Not much fluctuation there. Fairly conservative, maybe financially, you know, that's a country that's maybe a little bit more safer to go into the one that's always at war. Always huge fluctuations, etcetera. 5. Global Expansion Opportunities: So now let's talk about global expansion opportunities. So, first of all, how are you gonna expand your business? It's one thing to say. You know what? We really should expand globally and start selling. Well, how do you do that? Do you go through a merger? Do you merge with another company that's already over? Wherever you want to be, do you just acquire company That maybe kind of a similar in business and but located where you want to be, Um, and just sort of take them over and then kind of, you know, transition them into selling what you saw. Do you just open a location there and actually just literally take your business and say, OK, we're gonna rent a office or retail or whatever. It might be, ah, warehouse in the new country and just start operating. And then do you hire local employees or to relocate current ones? So lots of decisions to make. And now, obviously it's somewhat vague, but partially because it depends really on the type of business you're in and what your goals are. No, If you're from selling a product and, you know, maybe you have sails under a 1,000,000. You're probably not looking at mergers, acquisitions. Maybe you're just looking at, you know, opening our retail shop overseas. But then again, if you're in a multibillion corporation, you're looking expanding in tow, a completely different continent and really, wanna, you know, have a better reach in there. Then you're probably going through a bit more decision making in terms of what's the best plan And how do you make that reach? Um, each of these, then as well has their own sort of pros and cons or things to think about as well. You know, when you think about a merger. Okay, Well, now, how do you find a suitable merger candidate? You know what is exactly you're looking for you looking for to merge with a company that does similar to what you do? Or do they sort of add value to what it is that you already do? Or that you sell same thing When it comes to acquisitions, you just completely acquire another company. Well, you're looking to acquire company that you can then essentially just sort of uses a shell, maybe clean it out, and then just start using it to operate your business I mean, they're certainly benefits to that because, you know, there are already set up their establish. They have their offices, their locations, They have their business licenses, everything else. So, um, that isn't uncommon way for companies to sort of expand their reach. And then Or you could go the sort of the more, you know, start from scratch, open your own location again, whether that's a warehouse or a retail store, whatever it might be. But along with that comes a lot of research, and I really having to think, Well, where do we want to be? What is it that we need? What are the costs involved? And then, lastly, you know, do you then hire local people? Do you really, Kate, some of your current employees there certainly value in that because there's, you know, the knowledge transfer. But there's also costs associated with that and, you know, and do people really want to relocate? You know, your current employees probably don't want to relocate all to a new a new country, even if it's only temporary. So ah, lot of things to consider when it comes to the opportunity and how you're going to go about it. 6. Corporate Finance: So next is the corporate finance aspect of all of this. So first of all that we kind of touched on it. You need to understand international accounting standards. There's different accounting rules, depending on where you are in the world. And one of the big differences is that in the United States we we use Gap generally accepted accounting principles. Well, a lot of other countries, and actually quite a few of them use what's called international financial reporting standards. FRS similar in rules. But, um, Gap tends to be very rule based. Its, um you know, everything's by the letter of the law. If you need to have an accounting question, you go to the Gap Handbook and look it up. I frs the international standards. Ah, much more principle based that goes by the principle of the transaction. They also tend to be a little bit more conservative. So, um, you have to decide how do you adopt those? Because in the United States, we still need to report under gap if you're depending on how big your company is. So, um, you need to think about working capital needs, you know, you're you're setting up essentially a new business when you expand. I mean, sure, you already, you know, have the lessons learned and knowledge. Probably a product already. Um, we need to think about what? There's gonna be expenses to setting up in sort of a new country and getting going. So what's their working capital? Do you have? Ah, you're liquidity. What's are not just working capital for, you know, expenses in the near term, but your general liquidity needs, you know, do you might be operating a country that doesn't Ah, you know, do as much with credit. They do everything sort of cash based. So, you know, do you need to have a lot of liquid assets available? Um, you would also want to think about it. It's not necessarily here, but just get a sense of general sort of accounting and business strategy in other countries , like, for example, in the United States, even just accounts payable and receivable companies tend to, you know, invoice and then pay within, say, 30 to 60 days. Well, is that the standard where you're going, or do they tend to pay upfront? Is everything sort of cash based? Or maybe it's the opposite. Maybe they tend to drag things out 1920 days, and that's just standard. Those are the types of things you need to know when you're planning, because I can have a big impact on your cash flow. Next sale of bonds. Convertible Note. Stock preferred on global markets. So again, I'm thinking of a bigger company. You re look, they're not relocate, but you establish a presence in another country. You know what's kind of the norm? Can you sell bonds? Can you raise money through selling bonds and convertible notes? Can you go public? Is there you know, a stock market in that country? And what sort of the procedure to go public, if you will on the last expansion plan budgeting. So, uh, you know, all of this needs to be worked into a budget. You need to think about quite a few things. So not just, you know, working capital needs liquidity. All that you need to think about the accounting policies you need to think about, you know, things like I just mentioned, like the counselor Siebel. What's the turnover there? You know what? What are the costs associate with doing business in the sort of foreign market, then really budget out, so the same as you would budget for your domestic company or branch. You need to be budgeting and forecasting for the international branches well, and ideally, then you're somehow merging these two together as well. 7. Financial Analysis: So let's talk about financial analysis now. Um, so you need to kind of look at a historical review of performance. So again, these so actually, before we get into these were just gonna talk about you know how these apply to when you have multiple branches. You have multiple currencies. Um, you know, you're operating in different markets. They and they may even have different sort of ratios and sort of indicators of performance that their typical in sort of the foreign country. So anyways, ah, historical review of performance. So you need s So I'm not thinking here, too, of a sort of a merger acquisition. Or maybe you're taking over something business to expand. Here's a look at their past performance and they also have to then understand what what are the parameters that they were operating under, You know, Are they operating under international financial reporting standards? Uhm, you know, what's the currency base of all the financial reports that you're seeing, um, profit margins. So you have to do, you know, profit margins on your expansion. So whether this is ah financial analysis of your actual results, once you sort of open your operation or This is a profit margin review of sort of the historical results of a company or taking over or you're just forecasting forwards. So whatever it might be key thing to look at is the profit margin. And then you also if you remember back a few video go, you want to think about how that subject to external factors like exchange rates and interest rates global our political issues, etcetera. So I definitely take a look at profit emergence and examine them and see, you know what sort of that ranges? Um, return on equities. Similar thing. You know, you want to see you know, your investing so much equity in this expansion, What's gonna be your return on that equity? Is it ultimately worth? And you need to kind of look at this from multiple angles, if you will. I mean, it's one thing to, you know, companies get caught up and say, Well, if we expand and we're making sales and where you have a bigger sales base and that's terrific, well, that's OK, but that's kind of a first step, if you will. You really need that. Then turn around and see Well, is it really making us money. Or maybe it's dragging us down a bit. Or maybe it's costing us money to do all this more so than we're willing to spend. Need to think about your capitalization. You know, how do you fund sort of this international global operation, if you will again. We're talking in very general terms just because there's so many different types of companies in size and industry Um, that expand. So it could be just that the retailer or it could be the multibillion dollar company. In either case, though, you need to think about your capitalization, How much money needs to be put into this operation in order to make it run successfully on a global basis. On the last photograph to think about consulting your financial statements. So you have things like currency translation and intercompany eliminations. So those air very much accounting functions. Um, you know, you can imagine when you're dealing with a country that uses different currency, which you know will, you know. Now you have to take the financials for the global operation, convert them back to the domestic and then merger financials to come up with a sort of a consolidated financial statement, Um, and then intercompany eliminations. Probably more detail than we need to go into here. But it has to do with just doing transactions or maybe do transaction between the U. S. And the international branch. Um, that offset each other. But on the maybe the balance sheet that makes things look doubled up. So you have to know those things specifically and be able to identify them and do those eliminations. So again, not a not a simple thing. You don't just take numbers and stick them together. Um, there's quite a bit involved when it comes to this global expansion, as you're getting to appreciate now. 8. Global Competition: it's now global competition. That's definitely a big area. I think it's one that people think of, um, immediately is what's the competition like the first all you have to have SWAT analysis of this new market that you're expanding into. So that's strengths, weaknesses, opportunities and threats. You know, one by one you go through, and this is typically included in any type of sort of marketing plan and strategy. Um, but so, yes, you go ahead and do your SWAT analysis to see again one of those strengths, like, What's the strengths of the market, that you're expanding into the weaknesses, You know where their holes. And maybe you do it relative to the domestic America, the opportunities, Hopefully, there's opportunity there. You know what, What is missing? That what hole is missing that you can fill? You know, the products that you have that meets some need that people have and the threats you know, maybe the local competition. Or maybe it's the fact that you're a now outsider, if you will. Or maybe it is exchange rate, so there's lots of threat possibilities. Do you do that analysis to kind of really shape? You know, the landscape of what you're getting into. We have to look at cash availability. You know, again, when you expand it, you have to plan. You know how much equity you're gonna put into this? How much, Um, and how you're gonna burn that, like, burn that or use that money, You know, how much do you put into marketing, etcetera on that, then ties into your cash availabilities. How How long is it gonna take you to ramp up to the point where they're international operations or self sufficient and generate their own cash that also ties in, then the profitability levels. You need to look at things like your margins. You know, it needs to be obviously profitable for you to bother down this road. But is it comparably profitable, or is it slightly less profitable? Or maybe it's more profitable than your domestic operations. Then we also need to think down the road. So you're already think about expanding globally. Well, what's next? Do you just expand toe? One market globally is sort of the bigger term gold expanded. Maybe five countries that a neighbor, each other Ah, you know, expanding other product areas. Maybe you know what's the real reason for you expanding, you know, sometimes it is to get that bigger reach and bigger sales base. But sometimes that's just to get into markets where you think there's a lot more opportunity down the road and you're tryingto establish a foothold. I need the stand top a regulatory development. So again, I mean, this could be anything from sort of tax business to import laws. What? Whatever product you sell might have specific regulatory bodies that govern it. You know, imagine food industry now tons of regulations. Or, you know, ah, anything sort of health related, Typically a lot of health regulations. So definitely to stand top of developments in your given industry and the last thing knowing what your competition might be planning. So you've already got your plateful. You got a lot to think about when you think about expanding globally. Well, you also need to still be think about your competition and depending on what industries you have, it might be easier or more difficult to sort of gonna get a handle on what your competition is to in that international market. So but nonetheless, you're gonna have to figure out what that is on. Stay on top of them 9. Introduction to Tips and Strategies: All right, so we've covered quite a bit. We're gonna go into sort of a different section. We're talking about some tips and strategies and, like before these air, the five areas that we're gonna focus on next next five videos. But I want to introduce them to you, Just give you a sense of where we're going. So first of all, we're gonna talk about understanding all the possible factors out there, so just kind of bring it all together, that what you need to do, They were going to talk about how you map out your possible strategies. So you come up with a couple different strategies. We talk about how you then go about narrowing down and eliminating options. What things were you looking for? One of those kind of key indicators that help you decide. Can you come up with your top three strategies? And you know, I mean, this might seem like overkill. People think, I don't know. I just come up with a plan and execute well, really, because we have so many things to think about, you really need to come up with different sort of ways to attack the problem. If you will or the opportunity. If you want to get it that way, attack the opportunity and how you're gonna expand. And they would come up with your top three, then lastly, we'll just talk about how you execute those, you refine them, and then you go back and revisit those strategies. 10. Understand All The Possible Factors: All right. So first we're gonna talk about understanding all the possible factors. Um, so first I'll start with educating yourself on aspects of global strategy. You know, things we talked about interest rates, exchange rates, political factors, the capital markets, accounting rules, regulations. You've got a lot of stuff to research on, really Look into, and it can seem overwhelming at first. But, um, if you start tackle them one by one. Ah, that's the best way to approach it. And then kind of get your answers, then moved to the next. If there's areas that you are completely just, you feel like you're unable to handle them. Or maybe you're just not, You know, I don't have enough knowledge about those areas. Say so its accounting rules, for example. And you know, you don't understand the accounting rules to start with, so understand candles in different countries and gonna be any better. Maybe that's where then you bring in experts to help you out. Um, so determine what your competition is doing on how these factors impact them. You know, look for other companies, maybe that air domestic, and then have a branch in whatever country it is you're looking to expand to prioritized factors which are most applicable to your company. So, you know, maybe the interest rates you don't think will be a big impact. Or maybe the country's you're looking at the political environment is fairly stable. Well, then I wouldn't waste too much time. You know, digging into the politics gain an understanding of how different factors interact with each other. So you know, when interest rates go up or down, how does that typically impact exchange rates? And, you know, just a hint. There's definitely a correlation there. So you wanna you wanna have that in mind as well you don't want ignore one you don't want to say, Well, interest rates might go up, but they're not factoring how that impacts the exchange rates as well. And then lastly, start to relate the various global factors to your own business and think of plans. So, you know, you start doing your research, you figure out interest rates, exchange rates, Can girls off capital markets all those things you know we haven't even talked about. You know, you need to do all your due diligence on just the market itself. How big is the market doing your sales. Now, where you gonna locate? Are you gonna do a merger and acquisition? Open a new, you know, location. So you have a lot of stuff to think about. Some, as you're going through this related back to your business and your company on how it all comes together. 11. Map Out Possible Strategies: So now is the time to start mapping out your possible strategies. You know, bringing storm possible strategies as related to your company. You know, expanding the sales market, exploring cheaper manufacturing, leveraging international capital markets. So again, these are all different avenues. You need to think about how they're gonna impact your business, you know? And what is through reasons, First of all, for expanding, you know, Did you just want expand your sales? Do you think there's opportunity down the road? Um, maybe you're trying to acquire a company that sells the complementary product to yours. So you tryingto expand your brand. Well, that's a different reasons you could be expanding globally. So, you know, think about those again and sort of keep in context all the factors that we've talked about in the past, what several strategies mapped out. List out the pros and cons of eats, you know, do you acquire a competitors? Er, um you know, what are the pros and cons? One of the costs. One of the timing. Excuse me? Or do you just open up a new shop? You know, what's the pros and cons of that? Trying put numbers on the ideas really try to quantify what it is that you're doing and then explore other options with executives, not just finance. So I mean, a lot of this has a financial impact on your business that you want to think about all those sort of non financial um indicators and aspects that apply to this as well. 12. Narrow Down and Eliminate Options: so your next step would be the narrow down and eliminate option. So you've come up with several possible strategies. You know, maybe you can acquire business. Maybe you could try to merge with them. Or maybe you could just open up your own shop. Just three potential options. So basically, you have a bunch of options mapped out. Um, you kind of have a plan of what that would mean in terms of time in terms of finances and pros and cons. Then you kind of need to go through. So as it says here, with options available in a rough idea, pros and cons just start to narrow them down. There should be some. That kind of stand out is maybe a little bit more, uh, sound. Look at options from a financial perspective as well as other points of view. So again, don't just focus on numbers. People tend us always make decisions just based on the financial aspect. You have to look at other things, like marketing operations, long term growth potential. Something might make sense financially right now, but in the long run, maybe one of the other options is clearly the better choice. So we really need to, uh, take a big global look at this. Cream of the crop should rise to the top. Some options will just start to look feasible. And some won't. You know, you start to dig in and there might be one that's just far more superior. Um, to some of the other options. Now you can start Say OK, well, maybe trying to merge with a company just doesn't seem right. It's gonna take too long. It's gonna cost too much. There's nobody we really want to merge with. But there's still some that we might just want to flat out acquire, look for ways to combine or take the best of a few options and create new options. Definitely possibility. You know, we tend to sort of sometimes get railroad or their started down one train of thought. Maybe as you're looking at your different options, you go well, maybe there's a way to acquire company, but, you know, retain all of their staff. And so it's kind of like what we would've accomplished if we merge with them, but in this case, we're just gonna acquire them, so we own them. But we still want to keep a lot of the aspects as if we had just merged with them 13. Top 3 Strategies: So, depending on how many strategies you have, and if you have an overwhelming amount that I would come up with your top three and maybe it's just your top two. Or maybe that your at this point you're just ready to pick one strategy. But nonetheless, you kind of need a narrow these down, so you have to come up with their top picks eventually. So you know, we focused on just sort of a very generic example, and we only had a few options. But maybe there's lots of different ways, and some of those options involve, you know, going into different countries. So you go well. We could merge with a company in country A, B, C or D, or we could acquire coming in A, B, C or D, and you end up having like 12 or 15 different options. So now it's time to really narrow down. What's the best best of the best? That's when you really want to start your then your deeper research and sort of modeling. So you've already done a ton of homework on all your options. Now guess what? It gets even more intense because you really need to think this through. Ah, it's gonna be a huge impact for your business and want to kind of commit to something. It's gonna lead you down a path that you can't easily back out off. Determine the best and worst case scenarios, Freed possibility and each year, strategy. So what happens if it's a total flop? You know, how much does it cost? How long would it take you to sort of pull out of it? Or on the plus side? What if things go, go terrific? Everything goes as planned and maybe even a bit better. You know, what's the upside there? Summarized the financial aspects, variants, possibilities as well as other aspects, which is pros and cons. Staffing needs timing, other implications. You really want to key in on the big picture. You know all the important aspects of it. You know, things like, you know, if exchange rates aren't gonna be a big no aspect of your decision, then you don't really need to focus on the those at this point. You've already determined that, you know, there might be some risk there, but it's not large enough to stop yourself. Now we're focusing on the big the big picture. Um, and really trying to, you know, frame it so that we're deciding ultimately on one strategy. 14. Execute Refine Revisit: Okay, so now you get to the point where it's just time to execute, refine and revisit. So you decide on your final strategy. Here's what you're going to do. You know you're going to acquire company A in country B. Um, and you have mapped out the finances, the budget. You've already looked on the wrist, the pros and cons. You've done the swat, the whole bit, everything we've talked about. So you decide on a strategy, um, and put in place the mechanics to make it happen. So now certainly there's a next step. What do we do next? So, you know, you need to look at things like a team, you know, again. And this depends. Are you bringing in your own team or you just using your team over there? I'm financing. How are you financing this operation? Do you have cash in your current company? Do you need to get a loan? Do you need investors? The timeline symbols, like a project plan. You know how long is this gonna take? And what are the steps? You know, what's step a step B Step C. Ah, the goals. What's the ultimate goal? You know, it's the goal, obviously, to complete whatever strategy it is your implementing. But beyond that, what is the goal? You know, x amount of sales in the year, um, X amount of product, ship, whatever those might be put in place, any contracts. I mean, you're certainly going, even if it's just things like leasing a property, um, hiring employees, things like that, probably to set up banking relations in the in the new country where you have expanded to globally. So you're gonna have to have a team there toe to do these types of things. Keep track of the goals big and small, near and long term. Um, it's easy to set goals, but then sort of forget about them and just go about your day to day business. And that's that's the wrong way. The whole point of the goal is to have sort of something that's measurable and that you can strive to achieve. So that's what you want. Make sure you're meeting your goals. So again, that's part of the tracking us the ongoing process of constantly revisiting you know, what were our goals? Are we meeting them and do we need to refine anything and as it says here, Revalue. Reevaluate your strategy, success and refine is necessary. You know, maybe things aren't working out quite the way you hoped, but not horrible. So hey, what can you tweak or what can you do? Eso that things do work out a little bit better for you? 15. Dos and Donts: all right, So let's just talk about some do's and don't things that keep in mind and we would cover a lot. And when we haven't even got into, like, explicit detail on any one thing, it's just you have a lot of stuff you need to do now, Uhm, let's talk about just some general do's and dont's to kind of pull it back in together. So first of all invested time to research you could be doing a lot of research up front on all the different aspects of it. You know, we've touched on a lot of different areas that you have to research. Consider all your options whether you like them or not. I mean, sometimes it's easy to dismiss an option Go. That doesn't really doesn't appeal to me. But maybe, you know financially works out to be the best option. Or maybe it leads to other things which are good options down the road so you can't rule out everything narrow down your options and what factors are most relevant. So again, once you start putting together the pieces, the puzzle things will start to stand out like Okay, we really want to be in one of these three countries. Um, and we're really looking at, you know, merging with the company. So that starts to narrow down what options you have available. But that's that's good. That's what you want to do. Be honest with yourself and your abilities and your concerns. I mean, this is a big deal. Expanding globally isn't something you can just do overnight. I mean, obviously, there's a lot of work involved you need obviously be honest with yourself in abilities. You know, maybe finances are in issue. Maybe you don't have the ability to get loans or funding to expand how you want. Well, that's gonna be kind of a deal deal stopper. So you need to be very honest with yourself. Be able to concisely overview your options with other executives. So I mean, typically, when you're looking expanding globally, you know you're a bit of a larger company. You can't be a one man show. You really need to sort of get input from everybody and buy in from everybody. What you don't want to do is copy cat your competition. Now that said, I mean, it's definitely worth looking at your competition and seeing what they're doing, What worked for them? What didn't you don't don't want to just sort of ride their coattails and then you want to come up with your own strategies. Don't always assume the best will happen with exchange rates, interest rates. I mean, you know, this stuff isn't fun to look at. It's not exciting. Um, it's easy for people to go. Well, you know what? It probably won't have much of an impact in the Shove it to the side, and I think about it. But if you are subject to, you know, exchange rates and interest rates, say you are taking out a big loan or you plan on taking a big loan in the foreign country. Those are things you really need to think about and try to factor in. Don't forget to review your strategy. Ongoing. It's easy to lose sight. Get caught up in the day. Today you want to make sure you're on track, and if you're not on track, what can you do to get yourself back on track? Don't be shy about being conservative. It's always good to be conservative whenever forecasting and planning. You know you don't want to be overly aggressive. One. Get yourself in trouble. Maybe charge ahead too quickly or too. You're overly aggressive in your planning and just it's difficult than to meet your standards. And, lastly, don't take unnecessary risks. You know there's a lot of risk involved in expanding globally, so you definitely want to sort of step carefully as you as you venture down this path. 16. Case Study 1: All right. So let's We're gonna take a look at three case studies in the next three videos. Nothing intends. Just kind of an overview of what some companies did to kind of put a face to the all this, if you will. So first is a technology company that would have been us based, and they had a on Asia presence. Ah, US based technology manufacturer. And there are also a consulting firm. So they, you know, created technology and then also consulted with their clients on how to implement it into their businesses. They had a Taiwan presence from manufacturing so that men automatically explosion exchange rate risk and interest rate fluctuations. The accounting systems were tied together with software advanced enough to handle the translation and called solid ation, so they kind of took it. You know, this is something honestly could look at down the road. Um, you know where we talked a lot about, You know, you're gonna have to adopt different accounting rules. Possibly we're gonna have to look at the exchange rates And what You know how those convert as well as intercompany? I see down here in your company transaction. So their accounting software was fairly sophisticated, and they had the add on to accomplish all that. So the the Taiwanese, you know, unit was able to use the same system and they were tied together. Eso that system also involved tax planning, intercompany pricing. There's additional factors to consider with your global strategy. So, you know, these are things that we didn't even talk about the tax planning aspect. What are the tax rules where you're operating? Um, how do you you know, this is where companies start doing. A lot of, you know, tax planning as it says, you know, where do we move our profits to where it has the least amount of tax implications, intercompany pricing. So when you sell something from one division to another are from one country to another within your business, how do you price that? What's a fair price and what's allowed under the accounting rules? 17. Case Study 2: Okay. Our second case study real estate company growing within North America Ah, successful in the United States has already established its presence. Growth model was to expand into Canada. That's the global doesn't always mean overseas. You know, we're just talking about outside of your domestic country. So you know, neighbors to the north of the United States, and it's still its global reach. If you will. Maybe just on a smaller scale. You know, we always think about going to a different continent. For when we talk about global do the regulations and complexes in Canada. It proved difficult. Teoh duplicate the business model, you know. So even though the country's in theory seem fairly similar, he knows both English speaking both use dollars even though they're, you know, different dollars. A lot of trade agreements between the countries. Still, there's enough of rules and regulations that, uh, you know, can It was a lot more strict when it came to the real estate business and how transactions are conducted. So the company wasn't able to just sort of move. It's, you know, model up there easily that could have expanded, but they opted not to. There was just too many hurdles and possible issues. So that's one of those situations where you start doing your research. You come up with the pros and cons you look at, you know, the SWAT analysis, the strengths, weaknesses, opportunities and threats. And at the end of the day, it shook out and they said, You know what I mean. We could do it, but we're not. We just don't feel comfortable. It doesn't look like it's, you know, guaranteed success. So and there's just too many hurdles, which also probably slowed down things like the timeline. And maybe that impacted the decision as well. So there's lots of reasons that could come up that will sort of, uh, eliminate on option for you. 18. Case Study 3: So our third case study is a dot com company with global expansion. So Internet based company obviously dot com their primary customers are English speaking. But this company, they want to take what they did, which was both sort of a service and a product on expand to Spanish speaking French speaking Japanese speaking markets. So they explore their options. They decided to focus just on Spanish speaking so and they had explosive sales due to targeting and researching first, the most lucrative options. So, um, just to say about more about this, um, this is one of those situations again where, you know, they looked at their options and what possible strategies they had. So when strategy was to take so they're fairly successful, you know, in the English speaking world, they thought, Well, let's why don't we just take this to all other countries, all different languages? Well, you know, they did a better research and realize well, you know, just based on the markets and also the impact on the business, you know, we they pretty much had to focus on one language market at a time just because, you know, they only had so much staff and so much funding available. So they decided to work on Spanish. But when they decided to to do that and offer all the approx and services to the Spanish market Hey, it worked out terrific. They were able to focus on it. They had already had sort of inroads into different countries that were Spanish speaking. So it just worked out really, really well. So here's a company that you know, wanted to go really big and, you know, space expand worldwide, I say worldwide, almost every market in the world instead decide to do about it more focusing. And it probably worked out far better for them would have been a bit of, ah, a nightmare, honestly, to try to manage going to all these different markets at one time. So sometimes it's good to take sort of baby steps and hey, it worked out great for them 19. 10 Point Checklist: All right. Next, let's just talk about a 10 point checklist. So, um, you know, kind of we're gonna touch on some of the points we've already made, but just really again to sort of package it nicely and sort of the 10 things you should do and kind of in order. So, first of all, determine your overall corporate strategy just for your company, Not just the global part. You know, what is your corporate strategy over in the next year? The next five years, You know, and that will then tie into your global plan, which is 50.2, depending on your corporate strategy. Map out your global plan. So if your corporate strategy is to grow by X amount and maybe it's no partially in dollars . Partially, it's in unit sales. You like our case? Day number three. You want to reach out to different market based on language because that's part your strategy than you. OK, so now let's start to map out our global plan, set out a map of your options. Okay, here's what we want. Accomplish. What options do we have? What sort of different roads do we have to make it to that ends, so within each option, then you look at the variable. So now you know, you know, you can go acquire companies. You could set up new operations. You could try to do it from domestically and sell into those countries. Whatever your options are. Look at all the variables now. So we're talking about all those things we talked about. Exchange rate risk, financial wrists, accounting, um, you know, taxes, accounting rules, you know, marketing. What does it take? You know, this is a market receptive to your product. There's so many different things to prop him up with 50 different items that you really need to research and think about before you just start narrowing it down. Um, the number five narrow down, which options you have, then, um, that makes sense. So, you know, you kind of put together your options. OK, well, maybe one of the two of the options are too expensive. It's just not a way to do it. Or, you know, maybe some of those options were, you know, just to two grand, if you will. You need to see me focus a little bit more. Okay, so then you just start to narrow down which of those options you really want to dio? Ah. Then you dive into the details now of your options that look beneath the surface. So you already kind of figured out, You know, what are your options? What are some of those hurdles? You kind of know that. But now it really dig in and start putting together some numbers determine if any additional strategies no longer makes sense. So you narrowed it down. And now maybe with a little bit deeper dive. You realize you know what? Um, you know, there's a few options here that's just starting. A starting to surface is better than others, so you can start to focus on those better ones. Now we're down your top options on strategies. So there you go. Some just narrow them down. Maybe it's down to three, you know, approximately options that you have, and then 0.9 financially model and factor in the variables. You know, really? Now you're really playing out. Let's come out with some hard numbers, um, to say, here's where we're gonna be in a year, two years, five years. Decide with executives and your board of directors. Your strategy. Execute, reevaluate. So ultimately, you're gonna have to make a choice. You get buy in, you execute it, you do it. Then that whole process takes obviously an amount of time. Uh, then you have to revaluate. So maybe after six months in a year. Okay. Is this working out how we planned? And what can we do if not to change it? 20. Course Conclusion: Okay, everybody, congratulations. That's it. You've made it through the course. So let's just do some general wrap up and then we'll talk about a few other things. So, first of all, some main takeaways invest the time to work on your global strategy. I think you can appreciate definitely, by this point that it's a It's a lot of work. There's just a lot that goes into creating a global strategy. So, um, dedicated to it be devoted to it. I know that it's gonna be a huge time investment by ultimately, if that's what you want for your company. That's what you're gonna have to dio be able to manage multiple changing dynamics. I understand how they impact your business. You know, we talked about things like exchange rates, interest rates, accounting rules fills all interact together. Um, you know, political factors might impact exchange rates and interest rates, so there's so many different ways that things interact, and it's hard to sort of wrap your head around and go exactly. You know, if a happens, then be will happen, but you do the best that you can. Um, and that's where then you start putting together your strategies again, As it says in 0.3. Look at your options. You plan, you know, you get it down to the strategy that you decide, and then it's time to just execute. And then that leads into your whole execution and re evaluating, um, and continually making things better. So on the next side, there's me again. My name's Chris Benjamin. Um, email website Twitter linked in all that. Honestly, the best way to contact me. He probably just be directly through the course. If you have any questions, please reach out. Love to hear from you. Definitely as well, if you can. For find in your heart to leave a review for the course. Love. Anything you can do to get those high reviews? If not, please send me a message. I'd love to know what I could do for you to make the course better. Um, it is one love your feedback. So when you leave your view, you know, leave a little message about what? You what you liked about the course up? I love hearing from you guys. Ah, last point. Before I let you go, definitely check out my other courses. I have quite a few courses. All the deal with accounting finance, you know, business globally. Business domestically, Um, different things in excel. So lots of different content I've put together really proud of it all. I love teaching you guys so definitely would love to be your instructor on the future. Course. That's it. Thanks so much everyone for taking this horse.