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Should potential investors see early international expansion as a red flag? Many do. Could the company management be unrealistic in their goals? Are they overlooking trade barriers, complex laws and accounting, and most importantly higher risk?
As with all things international, the answer is… it depends.
Does the company have international experience in their management team?
Is their product one that requires minimal localization for overseas markets?
Does the company have an approach that will offset a longer cash conversion cycle?
Does the company have overseas partners or contacts to help set up and carry out sales overseas?
And most importantly… does early-stage international expansion fit with the company’s overall strategy?
Investors I know are normally focused on the balance between risk and reward. Is international business inherently more risky? Again… it depends.
Trade barriers are at an all-time low and commercial cooperation between countries including trade agreements are at an all-time high.
Transportation costs for goods and people are relatively low.
Currencies fluctuate, but that can be mitigated with futures.
The developing world, including China, India, Brazil and Viet Nam have been economically growing at rates typically 3-5x that of the developed world. As the US, EU and Japan struggle post-recession, China, Brazil, and the rest of South America bounced back right away.
If investors are concerned about enforceability of partner and sales contracts overseas, I would recommend reading my earlier blog on overseas partnerships.
There is always risk of the unknown and the unanticipated. Careful research is crucial. But the days when companies waited until they had exhausted domestic market potential before heading on to more lucrative overseas markets is past. An early-stage entrepreneur may be fool hardy for going global early, but they may just be really, really smart.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| PSMF182430A51 bearing | 18 | 24 | 30 |
| PSMF182418A51 bearing | 18 | 24 | 18 |