How to start an international business

Many profitable businesses begin with powerful ideas inspired by personal experiences or the desire to solve a problem for others.

These lightbulb moments create a foundation for success – and the right concepts can pave the way for significant growth. For example, if you run a thriving domestic business, you could expand overseas or found a company in a different region, exposing a new audience to your products or services.

Below, we’ll take you through the benefits of doing business abroad and explain how to start an international business in general terms. We'll begin with answers to some common questions. 

Can I do business internationally? 

Generally, yes, you can do business overseas. Most countries are “on the menu” for trade, provided you register your business properly, fulfil any licensing requirements and meet other country-specific criteria.  

It’s worth bearing in mind that the logistics of international company formation can take a while to sort out. It often pays to seek advice from a local expert before pushing ahead with plans to do business abroad. 

Can I do business in any country? 

In short, probably not. Most entrepreneurs avoid doing business in countries on the Financial Action Task Force’s (FATF) list of high-risk jurisdictions, including the Democratic People's Republic of Korea (North Korea), Iran and Myanmar. 

It may be possible to do business in countries included on the FATF’s list of jurisdictions under increased monitoring. However, transacting in these countries can be difficult because they don’t currently meet the FATF’s anti-money laundering (AML), counter-terrorist financing and proliferation financing standards.  

Finally, it’s important to ensure the country you plan to expand into isn’t subject to international trade sanctions. You can check which countries are currently subject to arms embargo, trade sanctions and other trade restrictions at the GOV.UK website. 

What are the benefits of doing business abroad? 

There are many benefits to starting an international business. Perks vary, but some of the most common include: 

• More customers. Expanding globally allows you to tap into new markets and increase your total customer count. 

• Competitive advantage. Opening a business abroad can help you maintain a competitive edge in a crowded industry. 

• New resources. Doing business overseas can make new resources, including fresh talent, available. 

• Diversified income. Founding an international business can reduce your reliance on a single revenue stream. 

• Brand building. The more consumers know your brand, the more they'll think of you when they need particular products or services. 

    

All five advantages can help you generate extra income and improve your business's profitability. 

Can I run my business from another country? 

Many business owners operate companies in different countries from the ones they live in. Setting aside the potential tax advantages of living in one region over another, there’s no reason you have to reside in the same country you do business in. 

Having said this, some traditional banks prefer business owners to live in the countries in which their businesses operate. Others have income requirements or ask non-resident business owners to maintain high minimum balances.  

Thankfully, challenger banks and other alternative providers offer account solutions for international business owners. If you don’t qualify for a bank account overseas, opening an account with one of these financial institutions can help keep funds flowing by providing you with a local IBAN, which you can use to send and receive payments. 

How do I start an international business? 

Step 1: Market research 

Starting an international business demands thorough market research. This means gathering information on the economic, political and cultural landscapes of the countries you’re considering, as well as understanding the demand for your product or service. By doing this research, you can spot opportunities and challenges, making it easier to decide where to focus your efforts. 

You can use resources like trade publications, government websites and industry reports. Talking to business owners who’ve already expanded their ventures abroad can also provide valuable insight. Solid research can lay the foundation for success and help you avoid costly mistakes. 

Step 2: Write a robust business plan 

Next, create a clear business plan. This should outline your goals for international growth and detail the strategies you’ll use to achieve them. Your plan should include a market analysis, competitive analysis, marketing strategy, sales plan, financial plan and logistics management strategy. 

A strong business plan not only keeps you on track but also helps when seeking investment or partnerships. It shows others that your expansion is well thought out and increases your chances of success. 

Step 3: Find local allies 

To succeed in a new market, you'll likely need local partners or distributors. These partners can help you navigate the local business environment and connect with the right people. Finding the right allies is crucial, whether you need a distributor for your products or a partner with local expertise. 

It’s essential to thoroughly vet potential partners by considering their reputation, experience and alignment with your goals. Establishing the right partnerships can significantly improve your chances of success in a new market, so this isn’t a step to skip. 

Step 4: Create a marketing and sales strategy 

With a business plan and partnerships in your back pocket, it’s time to develop a tailored marketing and sales strategy. This begins with finding the best ways to connect with your target customers, both online and offline. A multilingual website, for example, can make your business more accessible and trustworthy in a new market. 

If you decide to localise your website, it pays to work with a regional content expert to ensure you get the linguistic nuances right. A well-constructed site can improve the customer experience and increase your visibility while making it easier for people in different countries to find and engage with your business. 

Step 5: Secure financing 

You’ll need solid financial backing to expand internationally. A well-developed business plan (like the one in step two) can make it much easier to secure funding, whether it comes from loans, grants or investors. 

When looking at financing options, consider the terms carefully to make sure they fit your business. Securing the right financing can ensure you have the resources to grow successfully. 

Step 6: Break into your new market 

A local presence can build credibility and help you navigate your new market. This could mean opening an office, hiring local staff or simply localising your website and marketing materials. 

Even if you’re running a digital-only business, adapting to the local market’s language and culture is key. Establishing a presence, whether physical or digital, can strengthen your position in a new region. 

Step 7: Stay flexible 

Finally, stay adaptable and adjust your plans as needed. Regular monitoring – and fine-tuning your plans as needed – can help you successfully launch your business or expand an existing venture overseas. To hone your strategy, focus on tracking key performance indicators (KPIs), staying informed on market trends and gathering feedback consistently. 

Finding the right financial partner for international growth 

Starting and running an international business is exciting but challenging. You’ll need a solid business plan, enough funding, an effective sales and marketing strategy, and a positive mindset to succeed.  

You’ll also need a reliable, secure payment partner to help you pay suppliers and staff, plus move funds internationally. One option is a traditional bank account, but banks often prefer entrepreneurs with interests abroad to maintain minimum balances or live in the countries they do business in.  

For these reasons, many business owners looking for quick account setup and personal service choose an alternative banking provider like Interpolitan Money instead. With no minimum balance or UK residency requirements, Interpolitan accounts offer flexibility and convenience, making it easier for international businesses to manage their finances. Better still, all accounts come with a dedicated relationship manager as standard. 

With offices in London and Mumbai, plus the opportunity to transact in 55+ currencies across more than 160 countries, Interpolitan accounts are ideal for entrepreneurs looking to expand abroad. 

To learn more about multi-currency accounts from Interpolitan, contact us today.