One of the advantages of the Internet is that it opens the world to small businesses. The opportunities become limitless. There are new customer bases, untapped markets and expanding horizons. This new frontier offers the same promise and possibility that America did 200 years ago.

But, as with all uncharted frontiers there are unknown hazards and dangers. Many of these are caused by cultural differences, varying communication styles, and the danger of running into con artists.

Other problems include exchange rates between countries, and the cost of banking between countries, shipping problems and expectations.

A business that hires telemarketing services from Asia may expect that ‘polite attitude’ is implied. While no one attempts to appear rude, lack of education, different communication skills, and management expectations, will result in a different customer experience. This can be devastating to an American company that is customer service oriented.

Another problem that many people face when working with foreign companies is found in the social or caste systems. A foreign company may pay based on their perception of your social class.

I remember a writer write about this topic. She started asking ‘up front’ which country the client resided in. When she worked for an American company, her expertise earned her $20 per 100 words. However, some countries in Asia expected her to write 100 words for less than $1.00. Not based on her skill, but on her gender.

Not all types of work at home positions require cold-call style or shopping carts. Many professionals work with telecommuting companies such as: http://www.teleworkrecruiting.com/?hop=wwwpays This can be a wonderful way for a work at home writer, graphic artist, customer service rep, or administrative assistant company to ‘get off the ground.’

Working with a telecommuting company can help a small business avoid many of the problems associated with clients. The company ensures the small business is paid, resolves problems, and ensures that everyone is clear on the expectations and remuneration.

One overlooked part of a work at home job is income tax. Without the proper forms a company can find themselves forced to pay sales tax to the state, or country, where an item was sold. They may also be forced to pay income tax. Foreign small businesses can work and generate revenue in the USA without paying income tax if they have a B8 BEN form signed, and convert their US earnings to their country’s currency before doing their taxes.

If they do not have the right form, or make a mistake in their method of calculating taxes, they will find the US revenue agency demanding 30% of their revenue.

A small business owner also needs to take into account the country’s rules on ‘exporting money.’ Many small business owners are building property management portfolio in the Middle East and Africa. However, many of these people are alarmed to learn that they are allowed to invest in the company, but if they sell a property, they may not remove the money from the company.

This can sound ludicrous to an American company who would imagine they can use Western Union or a wire transfer to move their money from one country to another. Unfortunately, this is not a universal business practice.

Asia is an area of opportunity, but small business owners who purchase property over there, or even trade stocks, need to realize that the government owns everything in the country. They may at any time seize property of any type, including cash, land, or stocks, without explanation or compensation.

There are unlimited opportunities out there. But, business owners need to educate themselves. They need to be aware that each culture follows its own business practices, complete with expectations and realities.

A little education can go a long way to preventing the business owner from landing on the wrong side of the law or tax regulations.

Article Source: http://www.thewahmshack.com/articledirectory/

About The Author:  Mark Walters is a third generation entrepreneur and author. He offers free training and investing videos designed to speed you towards financial independence at www.CashFlowInstitute.com

THIS ARTICLE is Free for reprint only if it remains unchanged and in its entirety, the Author's Resource Box AND our Article Source Credit URL are included, and ALL links are made active.

Print Article Add to Favorites Email to Friends Publish Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated