By Ernesto Poza
As even the smallest companies become more global in their operations, many family-owned businesses are seizing opportunities to expand overseas. But others are resisting and, in turn, missing opportunities that could sustain their success. Much of their reluctance is due to the conservative fiscal management and risk avoidance that characterize many family businesses.
Expanding overseas takes capital, often a loan with a long payback period. Currency fluctuations also are a hazard. So business owners find themselves looking hard for easier, faster domestic growth opportunities.
Managing risk will always be important, as companies must carefully balance their desire to invest capital for growth with shareholders’ needs for liquidity. But by taking the following steps, you can diminish the dangers of going global.
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