Starting a company without borders usually requires heavy investment. For the purpose of this post, we’re going to focus on the mining industry because it is one of the biggest in the world. Making money in multiple nations can mean you need to employ a huge team. There are also lots of other expenses you would need to consider. We’ll mention some of the most important in just a moment before making a prediction of how much cash you might require. With a bit of luck, this post will help you to understand the situation a little better.
Paying legal fees
There is no getting away from the fact that all international businesses have to pay a lot of legal fees. That is especially the case in marketplaces like mining where there are many risks involved. Companies also make a huge profit from the natural resources they excavate – that means governments want their cut too. It would be impossible to determine exactly how much you might spend in legal fees when launching a business that operates all over the world. However, it’s going to be a lot.
Dealing with complex accounts
It’s important you understand that international companies will have very complex accounts. There is no point employing the services of a standard accountant off the streets. You need an entire team of experts who work solely for your brand. Again, that is going to cost a lot of money. You won’t attract the best accountants in the business unless you offer excellent wages. Don’t make the mistake of employing people without the best skills because it will cause trouble further down the line. One thing no business owner can afford to get wrong is their tax.
Buying specialist equipment
In nearly all large industries, you will need to purchase lots of specialist equipment. The mining world is no exception. Companies trying to make money from drilling will need heaving industrial lifting equipment and much more. Rigs don’t come cheap, and neither do all those high-tech safety devices. In some instances, it is possible to improve your cash flow by leasing the equipment you require. However, that is never a good idea in the long run because you will end up paying more for the same tools.
Providing a wage for your team
As we said only a moment ago, you’ll need to pay a good wage if you want the best workers. That is especially true in the mining industry where people face lots of dangers and risks. Also, lots of your employees will have to spend a long time away from home. So, it’s vital that you ensure it’s worth them working for your brand. Their families will expect them to come home with a lot of money in the bank if you’ve kept them in Iraq for six months. That means the minimum wage is not suitable.
To answer the question posed in the title of this article, it would take a lot of money to start an international business. When looking at the mining industry, most new firms would require at least a few million dollars to get started. That is not the sort of money you’re going to get from your bank manager. Those who have ambitions of creating something impressive might have to use savvy techniques to achieve their goals. Maybe you need to start a smaller company first and then sell it to get the cash?